People usually take out life insurance because they want to remove at least one future worry. If something happens, they want to know their family will not also be left trying to cover costs or make difficult financial decisions.
What often gets less attention is the waiting period that applies to many policies. It is there in the paperwork, but it is easy to pass over when you are concentrating on premium payments or the overall cover amount.
For anyone looking at an over 50 life insurance plan, the waiting period matters. It affects when an insurance payout will be made and what happens if a claim is made sooner than expected.
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What is a life insurance waiting period?
A life insurance waiting period is the time at the start of a policy when the insurance company limits what it will pay if a claim is made.
If death occurs during this period, the policy may not pay the full benefit. In many cases, the insurance company will return the premium payments made so far rather than paying the full insurance payout. What applies depends on the policy type and the cause of death.
Waiting periods are set out in the policy schedule and supporting documents. They are not hidden, but they are easy to miss if the main focus is on price rather than how the cover actually works.
Why do Over 50s life insurance plans have waiting periods?
Over 50s life insurance is designed to be accessible. Most plans do not require access to medical records or a full medical assessment, which allows people with existing medical conditions to apply without difficulty.
This approach is particularly relevant for people with pre-existing conditions, as it allows cover to be put in place without medical exams or full health underwriting, while still limiting early claims.
Because insurers are not reviewing medical records or asking detailed health questions at the start, they limit early claims instead. The waiting period helps the insurance company manage its risk profile by reducing the chance of immediate claims linked to conditions that were already present when the policy began.
In return, applicants are accepted automatically and premiums remain fixed, provided the policy stays active.
How does the waiting period work in practice?
Most Over 50s life insurance policies include a death benefit waiting period, commonly between 12 and 24 months.
If death occurs from natural causes during this time, the policy usually refunds the premiums paid. Once the waiting period ends, the policy pays the full sum assured as a lump sum.
Accidental death is often treated differently and may be covered immediately, even during the waiting period. This varies by insurer and by policy type, so the wording should always be checked.
Suicide clause waiting period
Life insurance policies almost always include a suicide exclusion period, including Over 50s plans.
If death occurs as a result of suicide within the first 12 months, the insurance company will not pay the full benefit. Premiums paid may be returned instead. This approach is standard across the market and applies to most options, including level life insurance and decreasing life insurance.
Factors that affect waiting periods
Waiting periods are influenced by the type of policy chosen, whether medical information is required, how health questions are answered, and the level of financial protection selected.
Policies such as level life insurance or decreasing life insurance that involve some level of underwriting often come with fewer restrictions at the start, while simpler products rely more heavily on waiting periods.
Why insurers include waiting periods at all
Waiting periods exist to control pricing.
Without them, insurance companies would need to charge more to cover the risk of early claims. Limiting payouts at the beginning allows providers to offer broader options for cover while keeping premiums affordable over the long term.
This is especially important for plans like Over 50s insurance because they are not medically underwritten. In comparison, term life insurance plans and whole life insurance plans are medically underwritten at application, so any risk to the insurer - medical conditions, dangerous jobs/hobbies etc - are factored into the price of the premiums.
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Is an Over 50s policy still worth it?
For many people, it is.
Over 50s life insurance is often used to cover funeral costs, help with everyday living expenses for loved ones, or form part of inheritance tax planning.
Some people compare these policies with funeral plans, although life insurance usually offers more flexibility over how the money is used.
As with any financial product, it is important to understand the limitations as well as the benefits.
It can also be worth it to those who can’t obtain standard life insurance due to pre-existing medical conditions, as in some circumstances some cover is still better than no cover.
What to check before you apply
Before choosing a policy, it is sensible to look at how long the waiting period lasts, what happens if a death claim is made during that time, whether accidental death is covered straight away, and whether the policy builds any surrender value over time.
It is also worth considering how the cover fits into your wider financial protection plans. Reading the policy documents, including the privacy policy, or speaking with a financial advisor can help avoid problems later.
A practical note on peace of mind
Life insurance is rarely just about the person taking out the policy. It is about reducing pressure on the people left behind.
Knowing how waiting periods work from the start avoids surprises. Whether the aim is to plan ahead or simply cover future costs, understanding the detail makes the decision easier.
If you would like to talk through how waiting periods work or compare different cover options, Cavendish Online can help.
Speaking with a insurance adviser can make it easier to understand your options and decide what level of cover is right for you.
You can contact Cavendish Online to talk things through, or call
01392 241 850
(Monday to Thursday 9am – 5.30pm, Friday 9am – 5pm)
