Life Insurance Over 50: Why It’s More Important Than Ever
The Rising Need for Over-50s Life Insurance
A recent survey conducted by Scottish Friendly (published February 8, 2023) reveals that two-thirds of over-50s with life insurance now view their policy as more important due to the cost-of-living crisis. Families are under growing financial pressure, prompting older adults to consider how they can support their loved ones after they pass away.
Inflation Is Driving Up Life Insurance Premiums
As inflation continues to rise, the cost of life insurance premiums is following suit. Individuals who take out a policy now are likely paying significantly more than those who locked into level premiums in previous years.
Even those with inflation-linked policies—designed to maintain value over time—are starting to feel the financial strain. These policies are meant to protect against inflation but come at an increasingly higher cost.
Fixed Incomes Make It Harder for Over-50s to Keep Up
This financial burden is even greater for people over 50, many of whom live on fixed incomes such as the state pension or annuity payments. Others may no longer be in full-time employment—according to the Scottish Friendly survey, only 27% of respondents were still working full-time.
As a result, keeping up with rising premiums is becoming a real challenge for this age group.
Why People Over 50 Are Taking Out Life Insurance
The primary reasons over-50s are purchasing life insurance include:
- Covering funeral costs (57% of respondents)
- Providing financial support to family members (46% of respondents)
However, many are worried about whether their policy will be enough. Around 46% expressed concern that inflation is eroding the value of their plan or that it may not meet their expectations when the time comes.
Gifting Assets: An Alternative to Life Insurance?
According to Gareth Hope, Head of Research at Wren Sterling, while life insurance can be a powerful tool for providing for the next generation, it’s not the only option.
“Gifting assets could be an option, rather than relying on a life insurance pay-out down the line,” he explains. “The gifter would be alive to see the benefits of such a move.”
There are also several ways to facilitate this, such as setting up trusts, although these come with their own set of legal and financial considerations.
⚠️ Note: The Financial Conduct Authority does not regulate estate planning, tax advice, wills, or trusts.
Early Planning and Financial Advice Are Essential
If gifting isn’t feasible, life insurance remains a valuable option—but it’s one that requires careful planning.
Gareth Hope advises that working with a qualified financial planner is crucial to determine:
- Whether an inflation-linked policy is affordable
- How life insurance fits within your overall financial strategy
- Whether other options may be more suitable based on health, dependents, and income stability
“This is a complex market,” says Hope, “and I would urge people not to try and arrange life insurance directly, especially if it’s their primary means of providing for their family.”
Need a Life Insurance Review or Gifting Strategy?
If you’re reconsidering your existing life insurance policy, or exploring whether gifting assets might work for your family, it’s wise to seek professional financial advice.
Remember:
- The content of this article should not be considered specific financial advice.
- Estate planning, wills, and trusts are not regulated by the FCA.
- Always consult with a regulated adviser before making financial decisions.
Looking for expert help? Whether you’re planning your estate, adjusting your insurance policy, or considering gifting options, professional guidance can help you make the right decisions for your family’s future.
Would you like a version of this article formatted for your website or blog platform (e.g., WordPress, Webflow, Ghost)? I can create a clean HTML version too.
Here’s your blog content, now rewritten and structured with clear H2 headings, optimized for clarity and online reading. The article focuses on the growing importance of life insurance for over-50s, particularly in the context of inflation and rising financial pressures:
Why Life Insurance for Over 50s Is More Crucial Than Ever
Cost of Living Crisis Increases the Value of Life Insurance
A recent survey by Scottish Friendly (published February 8, 2023) found that two-thirds of respondents over the age of 50 believe life insurance has become more important due to the ongoing cost-of-living crisis. As families struggle with rising expenses, more people are turning to life insurance as a way to offer financial support to loved ones when they’re gone.
Inflation Is Pushing Premiums Higher
With inflation continuing to rise, life insurance premiums are following suit. People taking out policies today are facing higher costs compared to those who locked in level premiums in previous years.
Even those with inflation-linked policies—designed to keep pace with inflation—are starting to feel the squeeze. The increased cost of maintaining these policies is making them harder to afford, especially for those already on tight budgets.
Financial Pressure on Fixed Incomes
For people over 50, fixed incomes make things even tougher. Many in this age group are either relying on the state pension, drawing from annuities, or no longer working full-time. In fact, Scottish Friendly’s survey revealed that only 27% of over-50s were still employed full-time.
This means that as premiums rise, many older individuals are finding it more difficult to maintain their coverage—despite needing it more than ever.
Why Over-50s Take Out Life Insurance
According to Scottish Friendly:
- 57% of over-50s take out life insurance to cover funeral costs.
- 46% use it to provide for their family financially after their passing.
However, the same percentage (46%) worry that their policy won’t be worth as much as they expected—either because of inflation or limitations in their coverage.
Could Gifting Assets Be a Better Option?
Gareth Hope, Head of Research at Wren Sterling, believes there may be alternatives to traditional life insurance.
“While it depends on each individual’s objectives, gifting assets could be an option, rather than relying on a life insurance pay-out down the line,” he explains. “The gifter would also be alive to see the benefits of such a move.”
Hope notes that options like Trusts can be used to facilitate this kind of financial planning, though it’s not suitable for everyone.
⚠️ Important: The Financial Conduct Authority (FCA) does not regulate estate planning, tax advice, Wills or Trusts.
Early Financial Planning Is Key
If gifting isn’t practical, life insurance can still be a powerful tool—but it requires careful consideration.
Hope advises working with a qualified financial planner to explore:
- Whether an inflation-linked policy is affordable
- How life insurance fits with your overall estate planning
- Your health status and the financial needs of your dependents
“This is a complex market with numerous product features,” he warns. “I would urge people not to try and arrange life insurance directly—especially if it’s going to be the main way they provide for their family after death.”
Final Thought: Review Your Policy and Options
Now more than ever, it’s important for those over 50 to review their existing life insurance policies or explore other financial planning strategies—including gifting or setting up trusts.
Seeking professional advice can help you:
- Ensure your loved ones are protected
- Make the most of your financial resources
- Avoid common pitfalls in the complex insurance market
Disclaimer:
This content is for informational purposes only and should not be considered financial advice. Always consult a qualified financial adviser for guidance tailored to your personal circumstances. The Financial Conduct Authority does not regulate Wills, Trusts, tax advice, or estate planning.
Would you like this formatted for upload to your website or blog platform (e.g., WordPress, HTML, or CMS-specific template)? I can prepare that next.
Here’s your final blog article, formatted with clear H2 headings, concise language, and structured for SEO and user readability. This version is clean and ready for publishing on your website or blog:
Why Life Insurance for Over 50s Is More Crucial Than Ever
Cost of Living Crisis Driving Up Demand
A survey by Scottish Friendly, published on 8 February 2023, found that two-thirds of people aged 50 and over with life insurance now consider their policy more important than ever. The cost-of-living crisis is placing families under significant financial pressure, prompting many older adults to prioritise life cover as a way to support loved ones after they’re gone.
Inflation Is Increasing Life Insurance Costs
As inflation rises, so do life insurance premiums. People taking out new policies today are facing higher monthly costs compared to those who locked in rates in previous years. Even those who opted for inflation-linked policies—designed to maintain value over time—are now starting to feel the financial pinch.
Over 50s Hit Harder Due to Fixed Incomes
Many people over 50 rely on fixed incomes, such as the state pension or annuity payments. With fewer in full-time employment—only 27% of respondents in the Scottish Friendly survey were working full-time—rising premiums can be particularly difficult to manage.
This creates a tough situation: people need life insurance more than ever, but many are struggling to afford it.
Why People Over 50 Choose Life Insurance
Scottish Friendly’s survey highlights the main reasons over-50s invest in life insurance:
- 57% want to cover the cost of their funeral.
- 46% want to provide financial support to their family.
However, almost half (46%) of respondents are worried that their plan won’t be worth what they expected—especially as inflation continues to reduce the real value of long-term policies.
Gifting Assets: An Alternative to Life Insurance?
According to Gareth Hope, Head of Research at Wren Sterling, life insurance isn’t the only option when planning for your family’s future.
“While it depends on each individual’s objectives, gifting assets could be an option instead of relying solely on a life insurance pay-out,” he explains. “And the gifter gets to see the benefit of their gift during their lifetime.”
Hope notes that financial tools like Trusts can be used to pass on wealth effectively, though these strategies aren’t suitable for everyone and should be discussed with a qualified adviser.
⚠️ Note: The Financial Conduct Authority (FCA) does not regulate estate planning, tax advice, Wills or Trusts.
Early Planning Is Essential
If gifting isn’t possible, life insurance can still play a critical role in supporting your loved ones—but only with the right structure in place. Gareth Hope recommends working with a financial planner to evaluate:
- The suitability and affordability of inflation-linked policies
- The impact of health and lifestyle on premiums
- The overall financial needs of your family
“Life insurance is a complex product with many variations,” says Hope. “If it’s going to be your main financial legacy, seek advice—don’t arrange it alone.”
Time to Review Your Policy?
If you’re over 50 and already have a life insurance policy—or are considering one now—this is a good time to review your current arrangements. Rising costs, inflation, and changing family needs all mean that what worked five years ago might not be enough today.
You may also want to explore alternative strategies like gifting or setting up a Trust as part of your estate plan.
