Over 50 Life Insurance Average Cost In 2024

Elaine Brookes Steve Case

Author: Steve Case - Insurance Expert

Reviewed & Fact Checked By: Elaine Brookes

Updated: 31st December 2023

over 50 life insurance average cost

Many factors determine the average cost of over 50s life insurance. The value of your monthly premiums will depend on your personal circumstances and how much coverage you need.

Below you’ll find a guide to different types of life insurance policies with over 50 life insurance average cost. If you’re over 50 and looking for the best way to provide your loved ones with financial security at the best price, read on and find all the details.

What Determines the Cost of Life Insurance? 

The cost of your life insurance per month is calculated based on your individual conditions and the type of policy you’ve chosen.  

Several key factors impact the amount you will pay for your life insurance coverage each month. These factors include:

  • Age. Your age is one of the primary aspects that determine the cost of your policy. The older you are, the more you pay for your monthly premiums. This is because it is assumed that as people age, they may become more susceptible to various health problems, which means an increased risk for insurance companies.
  • Pre-existing health conditions. If you have any pre-existing medical conditions, the price of life insurance cover may be increased depending on the type and severity of your condition. When applying for a policy, you must disclose any health conditions you have, including physical and mental.
  • Medical history. If you’ve had any medical conditions in the past, or there is a particular condition occurring in your family’s medical history, it may affect the cost of your life insurance. If the condition is likely to re-occur, you may experience your monthly premiums increasing.
  • Overall health condition. If you’re severely overweight or obese, your premiums are likely to be higher as there’s an increased risk of developing health complications. The same applies if you’re a heavy smoker – a higher risk of health problems like lung cancer may result in more costly premiums.
  • Occupation and lifestyle. You can expect your monthly premiums to be higher if your occupation and lifestyle are considered ‘high risk.’ This means that if your job or hobbies (for example, extreme sports) are dangerous, you’re likely to pay more for your policy. What’s more, if you consume alcohol in excessive amounts (more than 14 units of alcohol per week), you are also likely to pay more for your policy due to exposure to developing health problems. 
  • Length and level of cover. You can expect to pay higher premiums if you choose long-term coverage (policy term). Your level of coverage (sum assured) will also impact the cost of your policy depending on how much you’d like to be paid out to your loved ones. The higher the sum, the higher the cost of your monthly premiums. 

These factors allow insurers to assess how likely it is for a claim to be made, which is simply a level of risk. Your monthly life insurance premium is calculated according to these aspects.

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How Much Life Insurance Do You Need?

If you’re considering taking out a life insurance policy, you need to make sure the sum assured you choose should be enough to cover all necessary expenses your loved ones may have after your passing.

To establish how much life insurance you may need to provide your dependants financial stability, you need to take into account the following factors:

  • Mortgage debt
  • Rent
  • Household bills 
  • Family living costs
  • Childcare
  • Outstanding debt
  • Higher education costs
  • Funeral expenses

Apart from these essential costs, you may also wish to include additional funds as a cash gift for your loved ones in the form of inheritance. 

A professional team of experts can help you establish what costs you need to factor in your sum assured and will allow you to choose the most suitable cover option for you and your family.

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How Much Is Life Insurance for Over 50s?

One of the crucial elements determining the price of life insurance is the type of coverage regulated by the level and length of your policy. 

If you’re considering taking out a life insurance policy, you can choose between level term life insurance, decreasing term life insurance, whole of life insurance, and over 50 life insurance. You can also opt for a joint insurance policy to cover two lives simultaneously or add critical illness cover to your policy. 

Level Term Life Insurance

Level term life insurance provides coverage for a specified period of time. It will pay out a fixed sum if you pass away during your policy term. 

Key features of a level term life insurance include:

  • Provides cover for a specified term (up to 40 years)
  • Maximum sum assured – £1,000,000
  • A lump sum will be paid out if you pass away during the term 
  • The payout sum is fixed
  • It requires providing medical information during the application process
  • Perfect for protecting an interest-based mortgage, debts, and family living expenses

The lump sum can help your loved ones cover large expenses, such as an interest-only mortgage, large debts, and family living costs. 

Level term life insurance can also be one of the cheapest options. The average cost of a monthly premium for people over 50 is £17.26. This amount is based on the assumption that you are a non-smoker, in good health condition, with £100,000 of cover and a 20-year term.

The price of level term life insurance can vary significantly depending on your unique circumstances (for example, any medical conditions can inflate the price) and different providers. For this reason, it’s crucial to compare quotes to find the most suitable deal. 

Decreasing Term Life Insurance

Decreasing term life insurance is often the cheapest policy option as your sum assured lessens each year, reducing your risk to the insurer. 

Key features of a decreasing term life insurance include: 

  • Provides cover for a specified term (up to 40 years)
  • Maximum sum assured – £1,000,000
  • It will pay out in case of your passing during the policy term
  • The sum decreases throughout the term
  • Medical information is required during the application process
  • An excellent option for protecting a repayment mortgage

Your assured sum will often reduce at the same rate as your repayment mortgage, making it ideal to cover this expense. 

The average life insurance costs £11.20 per month with a decreasing term level for a person over 50. This average value is based on a non-smoker in good health and £100,000 worth of cover for a 20-year policy term. 

The exact price, however, will vary depending on your personal circumstances, such as medical conditions. 

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Whole of Life Insurance

Whole of life insurance can be more suitable for people later in life who are still in good overall health condition.

Key features of whole of life insurance:

  • Guarantees lifelong coverage
  • Maximum sum assured – £100,000
  • Guaranteed payout when you pass away
  • Fixed payout sum
  • It requires medical information when applying for the policy
  • Great for providing an inheritance

The average monthly price of life insurance with whole of life policy for over 50s is £144.03. It is based on a person who is a non-smoker in good health with £100,000 of cover.

The average monthly premium cost is significantly higher than other insurance options as the whole of life policy lasts the entire life, and a payout is guaranteed. What’s more, it will likely pay out over a shorter period of time compared to taking out the policy earlier in life.

This type of cover will allow you to provide an inheritance for your loved ones. They could also use the sum to cover your funeral costs

Over 50s Life Insurance

Over 50s life insurance offers guaranteed acceptance for all UK residents aged between 50 to 80, with the full cover being paid out within one year after your passing.

Key features of an Over 50s life insurance:

  • Provides lifelong cover
  • Maximum sum assured – £20,000
  • It guarantees to pay out the sum when you pass away
  • Medical information is not required during the application process
  • A great option for helping to cover funeral expenses or providing a small inheritance

The average cost of a monthly premium with Over 50s life insurance is between £32.30 and £75 depending on your age. This amount is based on a non-smoker with £10,000 of cover. 

As you’re not required to provide any information about your medical conditions, the price of monthly premiums will increase.

Insurers use higher premiums to minimise the risk of providing coverage. However, certain insurers will offer a maximum premium price that will stay constant throughout your policy. 

It’s important to note that the sum assured of £10,000 may not be secured for people aged between 75 and 80. A lower sum assured of £7,669 is secured by applicants who are 75 years old, while for 80-year-olds, this sum is capped at £4,634. 

Life Insurance with Critical Illness Cover

Critical illness cover is an option you can add to your insurance policy if you’re diagnosed with a serious illness.

Key features of life insurance with critical illness cover:

  • Additional level of cover in case of a life-threatening condition
  • Can be added to your policy for an additional fee
  • Great option for covering private medical treatment costs 
  • Can help you replace lost income if you’re unable to work
  • Available to take out with a term life insurance policy
  • Once you make a claim, it will expire along with your life insurance

The average cost of term life insurance with critical illness cover for over 50s is £116.47. It is based on the assumption that you’re a non-smoker in an overall good health condition with £100,000 of cover for a 20-year term. The cost of life insurance without critical illness cover is £17.26. 

The price of life insurance with critical illness cover is more costly due to the additional level of coverage added to your policy.

Some providers would allow you to secure critical illness cover separately from your insurance policy. However, this would require paying two monthly premiums.

Joint Life Insurance 

Joint life insurance can be a great policy option for couples who have shared financial commitments, such as family living costs or a mortgage. 

Key features of joint life insurance:

  • Covers two lives simultaneously
  • Provides only one payout
  • Perfect for couples on a budget
  • Available on term life insurance policy
  • Could save up over 30% compared to two single policies

The average cost of joint life insurance for over 50s is £32.89. On the other hand, the cost of two single life insurance policies is £34.52. 

It’s vital to note that if one partner is considered at higher risk than the other, the monthly premium of your joint policy will inflate. 

Moreover, you may need to ensure that the same policy covers your other financial commitments (such as personal debts). 

Healthy Ageing Tips For Those Over 50

  • Balanced Diet: Consuming nutritious food plays a vital role in ageing healthily. Ensure your diet is rich in fruits, vegetables, lean proteins, and omega-3 fatty acids to maintain optimal health.
  • Regular Exercise: Engage in physical activities such as jogging, yoga, or swimming for at least 30 minutes daily to maintain flexibility and strength.
  • Mental Fitness: Keep your mind sharp with activities such as reading, puzzles, learning a new language, or playing an instrument.
  • Regular Check-ups: Bi-annual or annual health check-ups can help in the early detection and management of potential health issues.
  • Stay Hydrated: Our body’s water content decreases with age, so drinking plenty of liquids and eating foods with high water content is vital.
  • Healthy Social Interactions: Maintain a strong network of friends and family for emotional support and engagement, which can lead to a longer, healthier life.
  • Sufficient Sleep: Good sleep is essential for health. Aim for 7-9 hours of sleep per night to help your body rest and repair.

These are just a few tips to help those over 50 live a healthier, more vibrant lifestyle.

If you want more in-depth advice, we offer a comprehensive guide on healthy ageing, including practical tips and evidence-based strategies for healthy living in your 50s and beyond.

Over 50 Life Insurance Average Cost Conclusion

Getting a life insurance policy if you’re over 50 years old is a great way to secure your loved ones’ financial freedom if you pass away.

Although the average prices of life insurance presented in the article show one figure, the cost of your monthly premiums will depend on your personal circumstances. 

Various factors are considered when calculating the price of a life insurance policy, and they will significantly influence the individual cost of your premiums. That’s why it’s crucial to seek support from experts who will help you find the best solution.

At Insurance Hero, you can compare the leading life insurance providers in the UK and choose the one that meets your needs. If you’re looking for the most suitable Over 50s life insurance policy option at the best price, get a quote today and provide your loved ones with the financial support they may need.