Compare SunLife life insurance

Customers cited easy application process and good service

No cash-in value for standard policy

Over-50s life insurance plans like SunLife’s pay out a guaranteed lump sum when you die. They’re a type of whole-of-life insurance policy, so it won’t expire when you reach a certain age, though maximum payouts tend to be lower than traditional life insurance policies. The brand was highly commended in Finder’s Customer Satisfaction Awards 2023, with customers giving it 4.5 out of 5 stars for service.

Who is SunLife?

SunLife opened its first office in London in 1810, and in 1900, became the first company to offer life assurance without the need for a medical. It launched its first over-50s life insurance plan in 1979. Today, it offers this core product alongside others aimed at an older age group, including funeral plans, home insurance and pet insurance. SunLife is a trading name of Phoenix Life Limited, which provides the over-50s policies.

What types of life insurance does SunLife offer?

SunLife only offers one core life insurance plan, which is aimed at over-50s who are UK residents, and pays out a guaranteed lump sum when you die. SunLife pitches its guaranteed over-50s plans as a way for you to help loved ones cope with funeral costs, or simply to leave them a little something to remember you by.

SunLife Guaranteed Over 50 Plan

Unlike traditional life insurance policies, SunLife’s over-50s plan asks no questions about your medical history and lifestyle – you’re guaranteed to be accepted.

Like other over-50s plans, though, the maximum lump sum you’ll get is likely to be much lower than traditional life insurance policies. Payouts will depend on your age and monthly payments (the older you are when you take out the scheme, the lower the likely payout). When we ran some quotes, the highest payout we found for a 59-year-old paying £74 a month was £17,506.

Plus, depending on how long after taking out the policy you die, you may end up paying more in premiums than the cash payout is worth.

Under SunLife’s standard over-50s life insurance plan, premiums are payable for life – if you stop, your insurance will end and you won’t get anything back.

It also offers a “Premium Cap” plan for those who are worried they might not be able to afford premiums later in life. This lets you choose a fixed period to pay premiums, though monthly payments are higher.

Benefits of SunLife life insurance

• As with all over-50s life plans, you don’t need to answer any questions about your medical history or lifestyle to qualify.
• You can choose for your payments to start from as little as £4 a month.
• SunLife’s “Premium Cap” over-50s plan gets a 5-star Defaqto rating.
• Take out a policy and get £120 gift card to spend at 100s of shops.

Drawbacks of SunLife life insurance

• With SunLife’s standard policy, you must keep up payments for as long as you live. If you stop, you won’t get any money back (there is no cash-in value) and your cover will end.
• SunLife’s standard policy only gets a three-star Defaqto rating.

SunLife life insurance exclusions

As with all insurance, if you don’t answer questions truthfully when you apply, this might invalidate your cover.
If you die within the first year after taking out your policy, the full cash lump sum is not payable unless you die as the result of an accident. Instead, SunLife will refund the premiums paid to date.
SunLife’s definition of accidents excludes death caused directly or indirectly through:

• Your involvement in criminal acts
• Flying as anything other than a fare-paying passenger
• Involvement in hazardous pursuits
• Self-inflicted injury
• Involvement in war or hostilities
• Alcohol/drug abuse
• Natural causes (such as an illness or disease)

What’s the claims process for SunLife’s life insurance?

Claims can be made by phone (0800 008 6060) or in writing (SunLife, PO Box 1395, Peterborough, PE2 2TR).

The person making the claim will need the policy details, the original death certificate, and details of the bank account where the cash sum is to be paid.

Frequently asked questions

• Can I reduce my premium part way through the plan?

  After you have paid your first premium, you can ask to reduce your future premiums – the lowest amount is the minimum level that was available when you purchased your SunLife over-50s policy. You can only reduce your premiums once and can’t change it back. The cash sum amount will also reduce.

• What happens if I miss a payment?

  SunLife will write to you and give you 30 days to pay. If you still haven’t paid by the end of this 30 days, it will write again and give you another 14 days. If any outstanding premiums aren’t paid in this timeframe, your policy will be cancelled and you won’t get anything back. However, if you subsequently pay all missed premiums within six months of the first unpaid premium, you can resume the scheme under the same terms.

• What's the maximum I can pay into the plan each month?

  The maximum payable under a single SunLife plan is £74. If you already hold any life insurance plans with Phoenix Life Ltd, where your acceptance was guaranteed, you are only eligible for a new plan if the total of your monthly premiums is less than £100 and the total amount of life cover is £18,000 or less.

• Will tax be payable on the lump sum?

  Your SunLife final cash payout is likely to be free from UK income tax and capital gains tax, but your beneficiary may need to pay inheritance tax as it may form part of your estate when you die. It’s also worth noting that tax rules could change in the future, which might affect the tax implications on your payout.