Life insurance vs over 50 life insurance – what’s the difference?
We compare these two different types of life insurance and the benefits of each.
Key points:
- If you’re over 50, the type of life insurance you need depends on what you want to cover.
- We offer term life insurance and over 50 life insurance, both designed to suit different needs.
- It’s worth weighing up what you need from your life insurance before making any decisions.
Turning 50 is a big moment, and something that deserves to be celebrated. For some of us, reaching this age can also bring thoughts about our future and the future of our loved ones.
You might have started thinking about life insurance if you haven’t already put cover in place. Many people assume that turning 50 automatically means they need an over 50s product, but that is not always true.
Both over 50 life insurance and term life insurance can be suitable for someone over 50, depending on your individual needs. They are two very different products, designed to offer different types and levels of protection.
What is term life insurance?
Term life insurance – mostly known as ‘life insurance’ – pays out a lump sum if you die or are diagnosed with a terminal illness during the policy term.
It’s designed to help your family maintain their way of life and pay the bills. You can choose the length of the policy when you apply.
Our Life Insurance offers two main types of cover: level cover and decreasing cover. You need to be between 18 and 77 to apply, and you’ll need to tell us about any pre-existing health conditions. It’s worth taking some time some time to work out what feels right for you, and what you need the cover to do.
You can read more about our term life insurance in this article. Term life insurance isn't a savings or investment product, and will only pay out on a successful claim.
What is over 50 life insurance?
Over 50 life insurance – also known as ‘whole of life cover’ – protects you for the rest of your life rather than a set number of years.
If you’re looking for a more affordable and flexible option, then this could be the type of cover for you. It’s often easier to get over 50 life insurance than term life insurance because we don’t ask any questions about your health or medical history.
Over 50s life insurance is guaranteed to pay out a lump sum when you die. This can be used to leave as a small gift for your loved ones, to help with funeral costs or to pay off any outstanding debts.
With our Over 50s Life Insurance, we’ll pay a lump sum if you die for any reason after the first 12 months of the policy, or within the first 12 months if your death is a result of an accident. If you cancel your policy, or stop paying your monthly premiums, your cover will end and you won’t get back any of the money you’ve paid in. Over 50s Life Insurance isn't a savings or investment product, and will only pay out on a successful claim when you die. If premiums aren’t paid when due or if the policy is cancelled the plan will end and you won't get anything back.
Which one could be right for me?
When choosing between these two types of cover, it’s not just about your age. You’ll need to consider what you need the insurance for.
| Term life insurance | Over 50s life insurance |
|---|---|
| Runs for specific length of time | Runs for your whole life |
| We’ll ask you about your medical history | We won’t ask you for your medical history |
| Only pays out if you die during the policy term | Guaranteed to pay out when you die |
| It's not a savings or investment product, and will only pay out on a successful claim. | It's not a savings or investment product, and will only pay out on a successful claim when you die. If premiums aren’t paid when due or if the policy is cancelled the plan will end and you won't get anything back. |
If you’re not sure which type of life insurance is right for you, we recommend speaking to a regulated financial adviser. You can find an up-to-date list of regulated advisers on Unbiased. It’s likely you’ll need to pay for this advice, but there are usually different ways to pay.
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