Sponsored by The Post Office
If you’re aged 50 or above and are looking for Life Insurance, you might be wondering whether to go for an Over 50s policy or Term Life Insurance.
Whilst both Over 50s Life Cover and Term Life Insurance can provide valuable peace of mind that you’ll leave your loved ones with a financial buffer in place when you die, these two types of cover work in very different ways.
Here, we explain the main differences between Over 50s Life Cover and Term Life Insurance to help you decide which type of policy might be best for you.
What are the main differences?
Over 50s Life Cover
- Is for those aged between 50 and 80
- Offers lower cover limits than other types of life insurance, generally between £1,000 and £10,000
- May not require medical checks
- Provides guaranteed acceptance
- Applies for the whole of your life, so you’re guaranteed a payout when you die
Term Life Insurance
- Is for those aged 18-70
- Offers substantially higher amounts of cover
- Provides cover for a fixed term of your choosing, so can be linked to your mortgage term or when your children have finished their education.
Why might you need it?
Over 50s Life Cover
- To leave a small legacy for your loved ones, such as grandchildren.
- To pay off any outstanding debts and bills, leaving your loved ones with peace of mind.
- To ensure the costs of your funeral are covered.
Term Life Insurance
- To provide a lump sum for your loved ones who rely on your income.
- To ensure your mortgage is paid off when you die – cover can be tailored to last for as long as your mortgage term.
- To financially support your children until they’re 18 or above.
- To leave a legacy that keeps pace with changing living costs. Cover can rise with inflation to ensure the payout amount is worth the same as it was when you took out the policy.
What can you get?
Policies will vary depending on which provider you go to, and some offer a range of additional benefits. For example, Post Office provides the following:
Post Office Over 50s Life Cover
- A protected payout, so you’ll get at least half your cover amount when you die, even if you have to stop paying your monthly premiums. Pay at least half your payments for a protected benefit on Over 50s Life Cover.
- Cover ranging from £1,000 up to £10,000
- No medical checks
- A free discount up to £250 if you choose the Funeral Benefit Option# – this means a payout goes to Co-Op to organise your funeral if the cover was taken out for this purpose.
- A free Health and Wellbeing Service^ with access to 24/7 Online and Telephone GP ensuring policyholders can benefit from their life cover now.
- A £125 Gift Card when you take out an Over 50s Life Cover Policy. Offer T&Cs Apply*.
Post Office Term Life Insurance
- Up to £750,000 of cover
- Optional extras for added peace of mind, such as critical illness cover that provides a cash lump sum to support you while they are recovering from illness or children’s cover, if your child is ill.
- Free Health and Wellbeing Service^ with access to 24/7 Online and Telephone GP ensuring both you and your family members can benefit from your life cover now.
- A £100 Gift Card when you take out a Life Term Insurance policy. Offer T&Cs Apply*
#Depending on the type of funeral chosen discounts available are: £250 for Tailored funerals, £100 for Essential funerals and £50 for Direct to Cremation funerals.
^These services are not part of the product contract and can be withdrawn at any time without notice.
Read on to find out about each of these types of cover work in more detail.
How does Over 50s Life Cover work?
As the name suggests, Over 50s Life Cover is only available to people aged between 50 and above. The maximum age you can usually apply for cover is 80.
You’re guaranteed to be accepted for this type of cover, with some providers, such as the Post Office, not requiring any medical checks. That means you won’t be turned down even if you have a long-term medical condition. Premiums are fixed, so you’ll know exactly how much you’ll need to pay each month, and the policy will pay out a fixed lump sum when you die. This type of policy typically offers cover ranging from £1,000 up to £10,000 depending on the age you are when you apply for cover. Your loved ones can use this payout for whatever purpose they want, whether that’s settling unpaid bills, covering funeral costs, or something else entirely.
Most Over 50s life policies have a waiting period (usually 12 or 24 months) before they’ll provide a payout. That means if you die within the waiting period, your loved ones may only get the premiums you’ve paid so far back. If you die after the waiting period is over, your beneficiaries will receive the full death benefit.
However, some providers do offer an immediate benefit in some circumstances. For example, the Post Office’s Over 50s Life Cover offers immediate cover for accidental death, and will pay two times the cover amount. If natural death occurs within the first 12 months of the policy, they will pay 1.5 times the total premiums paid towards the cover. You’ll get paid the full cover amount if death from natural causes occurs after 12 months from the policy start date.

Gifts to warm your winter with Over 50s Life Cover - Cashback Offer extended!*
Post Office Over 50s Life Cover provides up to £10,0001 for your loved ones when you pass away. If you’re a UK resident aged 50-80, you’re guaranteed acceptance with no medical check required.
Take out a policy before 9 March 2025 and get £30 winter warmer cashback2, plus a free £125 gift card3.
1Your cover amount will depend on your age and your smoker status at the time you apply. Policy terms and conditions apply. Post Office Over 50s Life Cover is underwritten and administered by Aviva Protection UK Limited. Neilson Financial Services Limited assist with the administration. 2£30 Winter Warmer cashback offer ends 9 March 2025, minimum premium and after 60 day qualifying period. 3£125 Gift Card offer ends 30 March 2026. This offer is subject to a minimum premium and after a 180-day qualifying period.
How does Term Life Insurance work?
Term Life Insurance cover can be taken out by adults in various age groups, so isn’t restricted to those aged over 50, although of course people in this age group are able to apply for it. The maximum age you can take out Term Life Insurance is typically lower than for Over 50s cover, and is typically 70 or 75.
When you apply for Term Life Insurance, you’ll usually need to answer several questions about your health and any medical issues you might have, as well as about your lifestyle. This is so the insurer can work out your premiums, which they do based on the likelihood of a claim being made. That means if you’re in good health, are a non-smoker and exercise regularly, your premiums are likely to be lower than a smoker who is in poor health.
Whereas coverage limits for Over 50s cover tend to be relatively low, with Term Life Insurance, you can choose a much higher cover limit if you want to. For example, Post Office Life Insurance will provide cover up to a maximum of £750,000 depending on your age when you apply. This may be useful if you have significant financial commitments, such as a large mortgage that you would like to be paid off when you die, or if you want to leave your loved ones with a bigger inheritance.
You can choose from level, decreasing, or increasing cover, depending on your needs. Level cover stays the same throughout the policy term. Decreasing cover reduces in line with a mortgage balance or other debts, whilst increasing cover rises each year by a fixed amount for the length of the policy term, often to cover inflation and ensure your cover maintains its value over time. You can also choose how long you want your term life cover to be in place for. If you’ve taken it out to cover a mortgage, you may only want it to last as long as your mortgage does, or you might want it to run until your children are no longer financially dependent on you.
Some Term Life Insurance policies allow you to add extra protection, such as children’s cover or critical illness cover, which is designed to pay out a lump sum in the event you or your child is diagnosed with a serious medical condition which will be defined in the policy terms and conditions.
Term Life Insurance policies generally don’t have a waiting period, so the policy should pay out as soon as it starts, provided you’ve kept up your premiums.

Gifts to warm your winter with Over 50s Life Cover - Cashback Offer extended!*
Post Office Over 50s Life Cover provides up to £10,0001 for your loved ones when you pass away. If you’re a UK resident aged 50-80, you’re guaranteed acceptance with no medical check required.
Take out a policy before 9 March 2025 and get £30 winter warmer cashback2, plus a free £125 gift card3.
1Your cover amount will depend on your age and your smoker status at the time you apply. Policy terms and conditions apply. Post Office Over 50s Life Cover is underwritten and administered by Aviva Protection UK Limited. Neilson Financial Services Limited assist with the administration. 2£30 Winter Warmer cashback offer ends 9 March 2025, minimum premium and after 60 day qualifying period. 3£125 Gift Card offer ends 30 March 2026. This offer is subject to a minimum premium and after a 180-day qualifying period.
Which is right for me, Over 50s Life Cover or Term Life Insurance?
Both Over 50s Life Cover and Term Life Insurance can help provide your family with financial security when you die, but they cater to different needs, so the right policy for you will depend on your individual circumstances.
If, for example, you want immediate protection and need a relatively high level of cover, and you’re comfortable with the fact the policy will be medically underwritten, then Term Life Insurance may be an option.
However, if you have a medical condition that might make it difficult for you to get Term Life Insurance, and you don’t need a high level of cover, perhaps because you want any payout earmarked to cover your funeral costs, or you only want to provide a small legacy, then you may decide Over 50s Life Cover is more appropriate for you.
Whichever type of cover you choose, you’ll have peace of mind that your loved ones will receive help dealing with the financial impact of your death, whenever that might be.

Gifts to warm your winter with Over 50s Life Cover - Cashback Offer extended!*
Post Office Over 50s Life Cover provides up to £10,0001 for your loved ones when you pass away. If you’re a UK resident aged 50-80, you’re guaranteed acceptance with no medical check required.
Take out a policy before 9 March 2025 and get £30 winter warmer cashback2, plus a free £125 gift card3.
1Your cover amount will depend on your age and your smoker status at the time you apply. Policy terms and conditions apply. Post Office Over 50s Life Cover is underwritten and administered by Aviva Protection UK Limited. Neilson Financial Services Limited assist with the administration. 2£30 Winter Warmer cashback offer ends 9 March 2025, minimum premium and after 60 day qualifying period. 3£125 Gift Card offer ends 30 March 2026. This offer is subject to a minimum premium and after a 180-day qualifying period.