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Looking into taking out a life insurance policy? You’ll have lots of different providers to choose from, including the Post Office.
The Post Office has a relatively straightforward life insurance plan for people aged 50 or more. But is it the right option for you? We’ll cover all the essentials you need to know about the Post Office Over 50s policy below, including eligibility, what’s covered, how to apply and of course, how much it costs.
We’ll even throw in a handy tip for getting life insurance in another country, perhaps if you’re thinking of retiring abroad. Open a Wise multi-currency account and you can pay cross-border premiums for low fees and the mid-market exchange rate. This could make the cost of overseas life insurance much cheaper.
But first, let’s focus on the Post Office life insurance plan and what it covers.
The Post Office’s Over 50s life insurance policy is designed to help older people plan for the future, when they’re no longer around. With this policy, your loved ones will receive a cash lump sum when you pass away. This can be used to pay for your funeral, settle debts or just as a gift to your family.
Here’s how it works. If you’re eligible to apply (which we’ll look at next), you’ll pay a regular monthly amount for your life insurance cover. You’ll get immediate cover for accidental cover, and you can also add on the Funeral Benefit Option¹ at no extra cost. This gives you a discount of up to £250 on funeral costs, with the cash lump sum from your policy paid out to the Co-op Funeralcare when the time comes.
There’s also an option to reduce your cover later on, which can make your monthly payments cheaper and gives you a little more flexibility.
When you die, your policy will pay out up to £10,000 in one cash lump sum¹. If you’d like a greater level of cover than this, you can look at the Post Office’s Life Insurance plan instead of the Over 50s policy.
If you’re between the ages of 50 and 80 and you’re a UK citizen, you should be eligible for Post Office Over 50s Life Insurance. You don’t need to undergo any medical tests or checks to qualify, and you won’t need to provide details of your medical history.
The amount you’ll pay each month for your life insurance cover depends on a few key factors. For example, your age (and the length or term of the policy) and how much cover you need.
The level of cover you need will depend on your age, health and lifestyle (for example, if you smoke or not). And of course, how much you’d like to leave behind to loved ones.
Over 50s Life Cover at the Post Office starts from around £7 a month¹, which is just 24p a day. But the more you pay each month, the more cover you’ll get.
So, for example, if you’re 50 when you take out this policy and pay just £7 a month, your cash lump sum will be just less than £2,000. You’d need to pay as much as £32 a month to get near the full level of cover, around £9,924².
The Post Office has a handy Over 50s Life Cover Calculator available on its website. You can use this to enter your age and use the monthly payments slider to see how much cover you’d get by increasing your premiums.
If you meet the eligibility criteria and you’ve taken a look at the Post Office website to read all the details, terms and conditions of the policy, here’s how to apply:
- Before you start, use the Post Office Over 50s Life Cover Calculator to work out how much cover you’d get for the amount you want to pay each month
- Get a quote on the Post Office website - you’ll need to fill in an online form with your personal and contact details.
- You can also call up customer services to discuss your options, get a quote and apply for a policy over the phone.
If you’ve got exciting plans to retire abroad, you might be considering taking out life insurance in your new country. If you need to make any premium payments across international borders, consider using Wise.
With a Wise multi-currency account, you can send and receive money all over the world for low fees and the real, mid-market exchange rate. This could save you a bundle on overseas life insurance payments compared to using banks, which typically charge high currency conversion fees and add expensive mark-ups onto the exchange rate.
Making payments with Wise is quick, easy and secure.
So, that’s pretty much everything you need to know about the Post Office Over 50s Life Insurance plan. It’s quite simple and straightforward - apply (with no medical required, which is great news) and make regular monthly payments, and a cash lump sum of up to £10,000 is paid out to your loved ones when the time comes.
Just make sure you do your research and compare providers before signing on the dotted line. It’s important to find the life insurance cover that works for you.
Sources used for this article:
Sources checked on 20th May-2021.
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
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