Cover after 50
Whole of life insurance: a payout that is certain, at a price
A whole of life policy pays whenever death happens, as long as the premiums are paid. Type a premium and a sum assured to see when they meet.
Independent site, not an insurer, broker or government service: benefit claims are made only on GOV.UK.
Whole of life: premiums against the payout
Example, not your result yet· change a figure to see yours
Premiums equal the payout at
age 114
| Chance of being alive then | 0.00% |
| Paid if you live to life expectancy | £25,834 |
| Half of people your age live past | age 83 |
Uses only the premium you type. Most whole of life policies pay out whenever death happens, so the question is how much is paid in first.
Whole of life insurance has no end date: as long as the premiums are paid, it pays the sum assured on death, whenever that is. Because the payout is certain, it costs much more than term cover for the same sum, which pays only if death happens within the term. A man of 45 buying £50,000 of term cover for 25 years buys protection that the ONS life tables say pays out in 17% of cases. A whole of life policy pays in all of them, and the premium reflects that. At £60 a month, premiums reach £50,000 by age 114.4; a man of 45 has a 0.00% chance of being alive then, and half of men his age live past 83.1. The common use of whole of life cover is not income for a young family but a known sum at death: often to pay an inheritance tax bill, written in trust so that the payout is outside the estate.
Rates read and sums checked by Radif Partners · Editorial policy · How the figures are worked out
When the premiums reach the sum, at different starting ages
The table keeps £60 a month and £50,000 of cover and changes the starting age. Real premiums rise with age, so use the quote you have; the point here is the shape. The median age is the age by which half of people now that age have died, on the ONS tables.
| Starting age | Premiums reach the sum at | Man alive then | Woman alive then | Median age at death, man | Median age at death, woman |
|---|---|---|---|---|---|
| 35 | 104.4 | 0.10% | 0.40% | 82.8 | 86.2 |
| 45 | 114.4 | 0.00% | 0.01% | 83.1 | 86.3 |
| 55 | 124.4 | 0.00% | 0.00% | 83.5 | 86.6 |
| 65 | 134.4 | 0.00% | 0.00% | 84.5 | 87.2 |
Against term cover from the same age
For comparison, the chance that a term policy taken out at 45 pays out at all. The rest of the time the term ends with nothing paid, which is what makes it cheaper.
| Term from age 45 | Man | Woman |
|---|---|---|
| 10 years | 3.5% | 2.2% |
| 20 years | 11% | 7.0% |
| 30 years | 27% | 18% |
The inheritance tax use
Inheritance tax is charged at 40% on the part of an estate above the thresholds set out on GOV.UK: a nil-rate band of £325,000 and, when a home goes to children or grandchildren, a residence nil-rate band of up to £175,000. A whole of life policy written in trust pays outside the estate, so the payout itself is not taxed and is available before probate. GOV.UK’s guide to trusts and inheritance tax explains how different trusts are charged. The trust calculator shows what a payout into the estate would add to the bill.
What to check
Whether the premium is guaranteed or reviewable, and when the first review falls; whether premiums stop at an age; whether the sum is fixed, rises with an index, or is linked to investments, which some older policies are. If the only aim is a modest sum for a funeral, the over 50s plans page compares smaller fixed sums with no medical questions.
Saving instead, and the trade-off
Someone who could save the premium every month until the break-even age would hold the same sum without a policy, but only if they live that long and never touch the money. The policy removes that condition: it pays the full sum even if death comes in the first year. That certainty is what the extra premium over term cover buys. For a couple with a known tax bill on the second death, a joint policy that pays on the second death is a common variant, because that is when the tax falls due. The odds that both partners survive to a given age can be read from the tables on the joint life page.