Term life insurance vs over 50 life insurance – which is right for me?

Term life insurance (or just life insurance) runs for a specific length of time and pays out to your loved ones if you die in that period. We offer two different types of life insurance and you choose the length of cover you'd like at the start.

• Level cover – the pay-out amount stays the same
• Decreasing cover – the pay-out amount decreases each month

With us, you have to be between 18 and 77 to apply. In most cases there won’t be a medical exam, but we'll need to know about any pre-existing medical conditions that we ask about. Single or joint policies are an option too.

Over 50 life insurance is a way to leave a financial gift to your loved ones when you pass away. Depending on the amount, that money can be for almost anything – a holiday, funeral costs etc. The amount it pays out is usually smaller than life insurance which is designed to provide financial help, and could be used to support a family or repay a mortgage so loved ones can stay in the family home.

This policy is a type of ‘whole life cover’ – it doesn’t have an expiry date and it’s guaranteed to pay out regardless of when you die (it covers your whole life). The only thing to be aware of is there's a period of time after you have started the policy during which it won't pay out, usually a year or two depending on the provider.  However, you will receive a sum equal to the premiums already paid.

If you have health problems, it’s useful to know that applying for over 50 life insurance is relatively easy. With us, if you’re between 50 and 80 and a UK resident, acceptance is guaranteed.

So, there are pros and cons to both life insurance and over 50 life insurance.

If you’d prefer to know that the people you leave behind could get help dealing with the financial fallout of your passing, the bigger pay outs typical of life insurance might offer the security you’re looking for. If you’d simply like to leave a bit extra, just to cover unexpected costs or so your loved ones can do something nice in memory, you might be happy with the level of pay outs over 50 life insurance offers.

Be aware that pay outs aren’t necessarily guaranteed with life insurance. If you live longer than your policy term, your policy won’t pay out when you die. 

Assuming you’ve kept up with your premiums as required, over 50 life insurance will always pay out. You just have to be aware that, depending on how long you live, you could end up paying more in than your policy pays out. 

It’s worth noting that neither life insurance nor over 50 life insurance have a cash-in value. You won't get your premiums returned if you change your mind and cancel the policy.

Whether you choose life insurance or over 50 life insurance (or even both) from us, you get access to the Aviva DigiCare+ app provided by Square Health. Aviva Digicare+ and its services are non contractual benefits which Aviva can change or remove at any time.  Terms and conditions and the privacy policy for Aviva Digicare+ can be found within the app.  The main reason for taking out a policy with Aviva is financial protection and you shouldn't take out a policy for Aviva Digicare+ alone.

As always, if you’re not sure which type of policy’s right for you, it might be worth getting professional advice from a financial adviser. Some financial advisers may charge you for this service. Visit www.unbiased.co.uk to find out more

If you’re ready to go, get a life insurance or over 50 life insurance quote today.