If you live a long life then these plans require you to keep paying until you are at least 90 – some of them make you continue to pay until you die.
As a result it is possible to pay in more in premiums than the insurer pays out when you die. Anyone that sells you Over 50s Life Insurance Plan must tell you how many years you would be paying in before your premiums paid exceeded your payout.
How much you are worried about this possibility will depend on how long you think you might live. Right now only 1 in every 100 people live past 90 years old. If you think you might be one of the lucky ones then make sure you pick a policy where you stop paying at 90. Both Legal and General and Royal London offer plans where you stop paying at 90.
SunLife are the only major company to offer over 50 life insurance with premiums that stop before you reach 90. When your payments stop is based on the age you take out a Guaranteed Over 50 Plan with SunLife, taking at plan when your 50 means your premiums stop when you are 80 – a whole 10 years earlier than other insurers.