Over 50 life insurance: premiums and paying out

Explaining how premiums and payouts work with over 50 life insurance

Over 50 life insurance is a way to leave behind a lump sum for your loved ones when you die. Here’s how it works when it comes to paying your premiums and getting a payout.

What is over 50 life insurance?

It's a type of life insurance that can help you leave a little something behind for the people you love. With us, you need to be aged 50 to 80 to apply. It’s whole of life cover, which basically means it stretches until you die.

How it works

When you take out an over 50 life insurance policy with us, you’ll either pick a cover amount or a premium amount.

The cover amount is how much we’ll pay out when you die. Whatever cover amount you choose, we’ll use that to work out how much you pay in premiums each month.

Or you can tackle it the other way round and decide how much you’d like to pay each month. With us, it can be from as little as £5. Based on that, we’ll work out how much your cover amount is.

No matter how much your monthly premium is, it will never change while your policy lasts.

Depending on how long you live, you could end up paying more in total premiums than the cover amount. Plus, our over 50 life insurance policies have no cash-in value at any time.

Stop paying premiums after 30 years or when you’re 90

You must pay monthly premiums for the entire length of what’s called your premium term. This will be until:

  • You die
  • You’ve had your policy for 30 years
  • Your 90th birthday

Which of these applies to you depends on what comes first. We’ll tell you what your policy term is when you first take out cover. You’ll also be able to find it in your policy schedule.

But to help explain, let’s look at a couple of examples:

  • You die – You take out a policy when you’re 50 years old and die 20 years later when you’re 70. At this point, your policy ends. This means there’s no need for anyone (for example, your loved ones) to pay any more premiums. We then pay the full cover amount to your loved ones after they make a claim.
  • You’ve had your policy for 30 years – You take out a policy when you’re 55. You only have to pay premiums for 30 years or until you’re 90, whichever comes first. In this case, paying premiums for 30 years brings you to the age of 85. At this point, the requirement to pay premiums stops, but your cover doesn’t. Your cover continues until you die, no matter how long you live. After you die, we pay the full cover amount to your loved ones when they make a claim.
  • You reach your 90th birthday – You take out a policy when you’re 69 years old. You only have to pay premiums for 30 years or until you’re 90, whichever comes first. In this case, you turn 90 first. So you only have to pay premiums for 21 years. After your 90th birthday, you stop paying monthly premiums from your policy anniversary. So if your birthday is in February and you originally bought your policy in May, that’s when your premiums stop. Your premiums end, but your cover doesn’t. Your cover continues until you die, no matter how long you live past 90. After you die, we pay the full cover amount to your loved ones when they make a claim.

During your premium term, you must make sure you pay your premiums when they’re due. If you stop paying, your policy will be cancelled, and you won’t get any benefits for the amount you’ve already paid. 

What happens when you die

We guarantee that we’ll pay the cover amount to your loved ones if:

  • You die for any reason after you’ve had the policy for 12 months or more.
  • You die because of an accident during the first 12 months.

If you die before the first 12 months are up, and it wasn’t an accidental death, we won’t pay out the cover amount. But we’ll pay a sum that’s equal to the premiums you’ve already paid.

Our over 50 life insurance

Find out more about how we can help you with over 50 life insurance.