SunLife vs One Family over 50 life insurance review 2023
Over 50 life insurance, commonly referred to as an over 50s plan or guaranteed over 50 plan, is a policy specifically tailored to those aged between 50 – 85.
Unlike traditional life insurance, acceptance is guaranteed, and no medical questions are asked during the application.
The maximum cover amount is £20,000 for these senior polices and a pay out is usually used to cover rising funeral costs (average cost £3,953) and/or provide an inheritance.
Both SunLife and One Family are two well-known over 50 life insurance providers.
In this guest article from leading broker Reassured, they compare these leading insurers so that you can make an informed decision on which is best to meet your needs.
Who Are SunLife?
SunLife are the nations largest over 50 life insurance provider, offering the most trusted over 50s plan on the market. You may have seen their TV advertising campaigns featuring Alan Titchmarsh or Carol Vorderman?
Who Are OneFamily?
The lesser known OneFamily are a financial services provider offering, over 50s life insurance, insurance bonds, tax-efficient savings plans, lifetime ISAs, lifetime mortgages and independent lifetime mortgage advice.
Over 50s plans: an overview
Although both SunLife and One Family offer other financial services, the only life insurance policies on offer are for the over 50s market.
As mentioned above over 50s life insurance guarantees a cash pay out for your loved ones after you pass away (assuming you keep up with your premium payments).
It is a popular option when turning 50 as acceptance is guaranteed and there’s no medical check or questions when you apply for a policy.
It could be a cheaper option if you have a pre-existing medical condition and have been quoted expensive premiums in the past for term-based cover.
As policy features can vary between insurers, here is a comparison of the options offered by SunLife and One Family:
- Guaranteed acceptance to applicants aged 49 – 85
- Full cover after one year
- Cash pay out up to £18,000
- An extra benefit of £250 towards your funeral with the ‘Funeral Benefit’ Option
- Premiums from £5 a month
- Guaranteed acceptance to applicants aged 50 – 80
- Full cover after two years
- Cash pay out up to £20,000 (depending on your personal situation)
- An extra benefit of £300 with the free Funeral Funding feature
- Premiums from £10 a month
Let’s discuss some of the key policy features offered by both insurers in more detail…
Maximum cover amount
A maximum cover amount (known as the sum assured) is the highest level of cover that can be provided for the amount of money (the premium) paid.
The maximum sum assured for over 50s life insurance is usually much lower than with traditional life insurance due to the unknown risk.
Although having a maximum sum can seem appealing, it is important to secure a cover amount which is best suited to your budget and needs, as the greater your sum assured the higher your monthly premium.
SunLife’s maximum cover amount is £18,000 whilst One Family offer a maximum cover amount of £20,000 if you’re aged 60 – 80. However, if you’re under the age of 59 then the maximum pay out is £10,000.
Free Gift/ benefits
Although an insurer offering a free gift or other additional benefits should not sway your choice of who to go with, here are a few they both offer:
SunLife currently offer a £100 Love2Shop gift card as part of their welcome pack for all new customers. It is one of the best over 50 life insurance free gift offers currently on the market and the value of the gift you receive isn’t dependent on the cost of your monthly premium.
It is important to know that to be eligible for the free gift you must purchase cover directly from SunLife (and not through a third-party intermediary).
One Family aren’t currently offering a free gift, however, when you buy a One Family Over 50 Life Cover Plus Plan you are able to gain access to a range of support services free of charge, such as advice on the following: Will writing, bereavement and legal matters.
You will also be offered care advice for the elderly, and the ‘One Family Health Support Service’.
Unlike most over 50 providers, One Family offer terminal illness cover, which will provide a lump sum pay out following the diagnosis of a terminal illness or life-threatening issue.
Both insurers offer accidental death cover, which means that the policy will pay out a benefit in the event of an accidental death.
Your personal circumstances will determine how much you pay for premiums. For example, smoking could increase the cost significantly.
However, if we are looking at starting prices for premiums, SunLife quotes can start from just £5 a month with Reassured, with a maximum price of £74. Whilst One Family monthly premiums start from £10 a month and can be as high as £75.
With SunLife you’ll need to pay premiums for the rest of your life unless you opt for their ‘PayStop’ option. With this option, payments will stop at age 88.
One Family require premiums to be paid until age 90. Once you reach age 90, you’ll no longer need to pay your premiums, but your cover will remain in place.
One way to compare customer experiences of each provider can be by looking at reviews online.
Sunlife are highly rated on the big review pages, for example, having a 4.8 star rating (out of 5) on Feefo as well as a 4.6 rating on Trustpilot. However, interestingly, SunLife only has a 2 star rating on Defaqto (out of 5).
One Family are also rated 4.6 on Trustpilot, across all of their financial services. Their over 50s plan, specifically, has an impressive 5 stars on Defaqto.
Many different insurers offer over 50 life insurance policies. Whilst we have highlighted information on SunLife and One Family and what they have to offer, it is important to compare quotes and find the most suitable policy to your needs.
The cost of premiums can vary wildly between providers so in order to find the most affordable deal you must run some research.
One effective way to do this is to use an FCA-regulated broker who can help with this market comparison usually free of charge.
They will also be able to help you through the application process and answer any questions you may have.
If you know what you need and do not require guidance, another good option is a reputable comparison website.