What is the Guaranteed Inheritance Plan?

Ian Cooper - Director of Commercial and Partnerships
Last updated 10^th March 2025
4 min read

The Guaranteed Inheritance Plan is a life insurance product for over 50s in fairly good health. It offers bigger payouts than other ‘over 50s’ plans, but it’s not guaranteed acceptance.

Here’s what makes it different in the world of over 50s life cover.

A whole-of-life plan with a substantial payout

There are a lot of over 50s life insurance plans on the market that are ‘whole-of-life’. This means you’re covered for your whole life (as long as your premiums are paid) rather than just a set period of time (called ‘term’ insurance).

Many of these plans accept anyone in a certain age range. They offer a cash lump sum which can be spent however beneficiaries choose. It is often used to put towards outstanding bills or funeral costs.

The Guaranteed Inheritance Plan is not a typical over 50s plan, because it’s underwritten. This means that applicants answer a few questions to check that they are in fairly good health before being accepted. This can allow an insurer to offer a bigger payout than a guaranteed acceptance plan.

This is different to our Guaranteed Over 50 Plan – which promises acceptance to anyone aged 49–85 with no medical questions.

Am I eligible?

You can apply for the Guaranteed Inheritance Plan if you are:

• aged 49 to 75
• a permanent UK resident
• with a UK bank account

You don’t need to be in perfect health. But you will have to answer a few medical questions before being accepted.

What do I get with a Guaranteed Inheritance Plan?

A payout of up to £50,000

Depending on your age and circumstances, you could leave between £5,000 and £50,000.

The younger you are when you start your plan, the bigger your payout. But, as with all whole-of-life insurance plans, there is a chance you may eventually have paid in more than your payout. The point at which this happens is called a “crossover”.

For example, a healthy 50-year-old non-smoker would leave a payout of £5,000 for just £9.55 a month, or a payout of £10,000 for just £19.11 a month. After around 43 years (at the age of 93), they would reach their “crossover”.

When you apply for a Guaranteed Inheritance Plan, your personal crossover date will be explained before you purchase the plan.  

Your loved ones can spend the money however they like. Maybe that's to put a deposit on their first home, keep as a nest egg, put towards funeral costs, or something else entirely.  

Full cover from day one

If you’re accepted, the Guaranteed Inheritance Plan offers full cover immediately. So it can give you and your family peace of mind from day one. (With some exceptions – see Important to know.)

This is unusual for an over 50s plan, which often only offer full cover after 1–3 years of premiums paid, depending on the provider.

A guaranteed payout – fast

As long as you pay your premiums, your payout is guaranteed. So you know your loved ones will have some financial support when you’re gone.

And, if you name your beneficiaries when you take out your plan, it won’t have to go through probate. So they’ll get their payout faster. That could be a big help at a difficult time.

Premiums never go up

Also, you can be assured both your monthly premiums and payout will never change (unless you have requested it). So you and your family know exactly what to expect and plan for.

Simple application

At SunLife, we believe it’s better to keep things as simple as possible. That’s why the number of health questions on the application form is kept to a minimum.

What are the health questions?

When you apply for the Guaranteed Inheritance Plan you will be asked:

• if you have a diagnosed condition relating to cancer or your heart
• if you have a serious incurable disease
• if you are currently undergoing any medical investigations
• whether you have experienced any of a list of symptoms
• what support or treatment you are receiving for existing conditions
• your height and weight

Depending on your answers, you may be asked for more details.

The whole process can be done online, with an instant quote and acceptance for qualifying applications. So there’s no long-winded paper forms.

Important to know

• Premiums are payable for life. If you stop paying your premiums your insurance will end and you won’t get anything back.
• Depending on how long you live, you could pay more in premiums than the cash sum paid out.
• Because the cash sum is fixed, inflation will reduce its buying power over time.
• You must answer all the application questions truthfully and accurately in order to get the guaranteed payout.
• Cover begins immediately, although in the first year, suicide or death from self-inflicted injury are excluded.
• Acceptance, premiums and payout depend on your age, lifestyle and medical history.
• This product does not provide cover for potential inheritance tax liability. If you do not name a beneficiary(s) when taking out your plan, the sum assured may be paid to your estate and could be subject to inheritance tax.

For full product details, download the Policy Summary and Policy Conditions(PDF downloads).