Weigh up the pros and cons before signing

A SPOKESPERSON for SunLife says over-50s plans are a “simple, affordable and accessible way” to provide a guaranteed cash lump sum when you die. Its plans do not pay if you die within two years but SunLife does refund 150 per cent of premiums paid: “If you die as a result of an accident during those two years, we pay out the full sum,” the provider confirms.

If you live for many years after signing up you could pay far more than you get back.

However, SunLife offers an option where you stop paying after a certain age, while Royal London, Sainsbury’s Bank and others stop taking premiums from age 90, and cover continues.

A Royal London spokesperson points out: “Whole-of-life plans have no end date for payments, so the policyholder continues to pay up to death.”

Over-50s plans may work better for older people in poorer health than, say, a 50-year-old in good health. If you have assets to pay for your funeral you probably do not need cover at all.