Updated: October 15, 2019

A Quick Guide to Guaranteed Life Insurance

Searching for a life insurance policy that fits your needs in later life? Find out whether guaranteed life insurance is the answer in our guide

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Pete Mugleston

Author: Pete Mugleston - Mortgage Expert

Updated: October 15, 2019

Most people choose to take out life insurance to give them peace of mind that their family and dependents will be looked after financially, once they’re gone. Guaranteed life insurance is a product designed especially for people in later life

There are many types of life insurance to cater for different needs. Age, in particular, is an important consideration for providers when they access applicants, as the older you are, the more likely you’ll have a health condition.

In this article we’ll explain what you need to know about guaranteed life insurance to help you decide if it’s the right type of insurance for you.

We will cover:

What is guaranteed life insurance?

Guaranteed life insurance is a type of insurance product designed specifically for people aged 50 and over. These products do not require the customer to declare any heath details.

As with any life insurance policy, guaranteed life insurance provides the same lump sum payment on death but insurers don’t take any new or existing health conditions into account when assessing the price the policy will cost you.

This makes life insurance more accessible to those who may have previously been turned down from other types of life insurance.

It’s worth noting that there’s generally an upper age limit for applicants, which vary between providers: it could be 75, 80, 85 or even 100 years old.

Talk to one of the expert insurance advisors we work with to find out what sort of guaranteed life insurance policy might suit you. Call 0808 189 0463 or make a quick online enquiry.

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Can you get guaranteed life insurance for over 40s?

Generally speaking, life insurance guarantees are aimed at those aged 50 plus (you may see it referred to as an ‘Over 50s plan’), but most providers will have some form of guaranteed acceptance life cover for those aged 40 and above.

One of the benefits of applying for life insurance when you’re younger is that you’ll be offered a lower premium.

Gathering and comparing quotes can be time-consuming, and understanding what they mean can be tricky, so it’s recommended that you speak to a professional financial advisor who can gather quotes, translate the smallprint and advise you on the best product for you.

Make an enquiry and we’ll put you in touch with one of the experts we work with. The service we offer is free and there’s no obligation either.

What’s included in guaranteed acceptance life insurance?

You can expect the following to be included in guaranteed life insurance:

  • A guaranteed payment to your dependents on your death.
  • In most policies you pay an agreed sum each month but there are policies where the amount increases as you get older.
  • Immediate cover
  • Cooling-off period – this varies but typically you have 30 days to change your mind about a policy if you want to.

How does guaranteed life insurance for elderly work?

Guaranteed life insurance for seniors is a popular choice for those who can’t get regular life insurance.

Your provider will work out the premium you need to pay as monthly installments.

If you stop paying your regular installments, your cover plan will stop and you’ll lose the money you’ve already invested so make sure you can keep up with payments before you sign up.

Almost all guaranteed life insurance policies will pay out when you die within the terms of the policy, but if you were to pass away within the first 12 months of taking it out, your beneficiaries might only get the premiums repaid.

This is important to consider when you’re deciding which policy will suit you. An expert independent advisor can help you understand insurance smallprint to ensure you’re getting what you expect when you buy a guaranteed life insurance policy.

Call 0808 189 0463 or make an enquiry to find out what sort of policy might be best for your circumstances.

What are the pros and cons of guaranteed life cover for seniors?

As with all financial products, there are considerations you need to make. A professional independent financial advisor can help advise on guaranteed life insurance and they’ll usually go through the pros and cons that include the following:

Pros

  • No medical history required: If your medical history includes conditions like having a heart attack or stroke in the last 12 months, you may be turned down by mainstream providers, but as you don’t need to declare it on your application for guaranteed life insurance, this won’t be a problem.
  • Accessible: If you’ve been turned down from other life insurance options, especially due to ill health, guaranteed life insurance might be the only way you’re able to ensure your dependents receive some form of lump sum when you die.

Cons

  • Higher premiums: Guaranteed life insurance costs more so expect to pay higher premiums each month, compared to regular life insurance. In fact, it’s considered to be the most expensive type on the market because the insurers are facing higher risks if they aren’t aware of an applicant’s medical history.
  • Lower payouts: There may be limits placed on the final lump sum payment, which means your dependents can only receive a set life insurance guaranteed issue amount. This will vary but typically it might be in the region of £25,000 as the payout limit.

How can I take out a guaranteed life insurance plan?

It’s recommended that you compare policies before you make a decision so your initial step should be to talk to a financial advisor with access to the entire market who can help. Make an enquiry and we’ll introduce you to one for free.

Once they’ve found the right provider for you, the process is as follows:

  • Monthly payment amount is agreed.
  • Set up a Direct Debit to make the payments.

It’s possible to take out multiple plans but the amount that you pay out across them should not total more than £100 per month.

What is the best-guaranteed life insurance available?

As explained in the pros and cons section above, guaranteed life insurance is more expensive than standard life insurance.

For example, you may have to pay as much as £75 a month instead of say £9, but this is all dependent on individual providers.

The easiest way to do a price comparison is to speak to a financial expert with whole-of-market access, as they can do the hard work for you.

Speak to an expert about guaranteed life insurance in the UK?

Taking out life insurance is a major financial decision and will have implications for your future. Therefore, it’s best to talk your options through with an expert advisor, like the ones we work with.

Call 0808 189 0463 or make an enquiry and we’ll match you with an advisor experienced in arranging guaranteed life insurance.

They will be happy to answer all your questions and find the right policy and price to suit your circumstances.

The service we offer is free and there’s no obligation either.

Ask A Quick Question

We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in life insurance. Ask us a question and we'll get the best expert to help.

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Pete Mugleston

Pete Mugleston

Mortgage Expert

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for OMA of course!

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FCA Disclaimer

*Based on our research, the content contained in this article is accurate as of the most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms that are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs.

Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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