How an over 50s plan works
These plans are a simple form of whole of life cover for people in an age range, usually starting at 50. You pick a monthly amount, and the insurer tells you the fixed sum it will pay when you die. There are no medical questions, so your health does not affect whether you are accepted or what you pay.
The payout is usually aimed at a funeral, small debts or a gift. It is fixed, so it does not rise with prices, and rising costs mean it buys less as the years pass.
The waiting period
Because nobody checks your health, insurers protect themselves with a waiting period at the start, often one or two years. If you die from an illness during that time, the plan usually refunds the premiums you have paid, sometimes with a small addition, instead of paying the full sum.
Accidental death is normally covered in full from the first day. Read the plan's own wording for the exact length of the wait and what counts as an accident.
Paying in more than you get back
This is the trade-off people most often miss. You pay every month for as long as the plan says, and if you live a long time, the total you pay can exceed the fixed sum your family receives. Some plans stop taking premiums at a set age while cover continues, and others ask you to pay for life.
If you stop paying, the cover usually ends and you get nothing back. Before you sign, work out how many years of premiums would add up to the payout. That number tells you a lot about the value.
- Check whether premiums stop at a certain age
- Work out how long until you have paid in the full sum
- Ask what happens if you miss payments
When standard cover is a better fit
If you are in reasonable health, a standard term or whole of life policy with medical questions may give you a much larger sum for the same money, and it usually pays in full from day one. Many people in their fifties and sixties with treated conditions such as high blood pressure or high cholesterol are still accepted on standard terms or with a modest loading.
An over 50s plan makes more sense where health would make standard cover hard to get, or where you want a small sum with no forms. It is a genuine option, just not the only one.
How Hi Tomorrow helps you choose
We look at your health first. If standard cover is likely to be available, we compare it from our panel and show you the difference in cover for your budget. If an over 50s plan fits better, we explain its waiting period, premium term and fixed sum clearly before you apply.
We also look at whether a trust would help the money reach your family promptly, and we stay available if they ever need to claim.