Shepherds Friendly life insurance, as most people use the phrase, means its Over 50s Life Insurance plan: a guaranteed-acceptance whole of life policy for people aged 50 to 80 that pays a fixed cash sum when they die. Shepherds Friendly is a friendly society, owned by its members, and its product page says it has been helping members since 1826.

Many readers weigh this plan against others. Anyone who does can have an FCA-authorised broker ring them, without charge, when they submit the form on this page.

What is a friendly society, and who is Shepherds Friendly?

The plan's terms and conditions (reference O50.2026.03.TC) say: "Shepherds Friendly is a trading name of the Shepherds Friendly Society Limited which is an incorporated Friendly Society under the Friendly Societies Act." Its Financial Services Register number is given there as 109997, and the terms name both the Prudential Regulation Authority and the Financial Conduct Authority as its regulators. The contract is with the society itself.

The Association of Financial Mutuals, the trade body for the sector, describes a financial mutual as an organisation "owned by its customers, or members", with no shareholders to pay dividends to. Shepherds Friendly describes itself in the same terms on its own pages, adding that profits are "paid to you or re-invested for your benefit". That is the society's own description of itself.

What you receive is set by the contract, which is the plan illustration sent when the plan starts together with the terms and conditions, and the sections below follow those terms. The terms say Shepherds Friendly gives no advice and suggest a financial adviser for anyone unsure, who may charge.

How the Over 50s plan works: limits, premiums and the sum assured

FeatureWhat the terms and product page say
Who can start a planAged between 50 and 80 at the start of the plan, and resident in the UK or Isle of Man when applying
AcceptanceGuaranteed, provided you fall within the age limits; the product page says no medical questions are asked
Monthly premiumAt least £10 and at most £50, paid by Direct Debit, and guaranteed not to rise
How long cover lastsWhole of life, until you die
When premiums stopAfter 30 years of payments or after age 90, whichever comes first
Cash-in valueNone at any time before death

The sum assured, which is the lump sum paid on death, depends on the premium you choose: the product page says the higher the monthly premium, the higher the sum. The terms list your date of birth and your answers about smoking among the information the society takes into account when it agrees the contract, and your sum assured is shown on the plan illustration sent to you.

The product page gives one illustration of its own: a 65-year-old non-smoker paying £23 a month, with a final payout shown as £5,025, correct as of 2 September 2026. It is the society's example, not a price you will be offered. You can lower your premium later, down to the £10 minimum, and the sum assured falls with it. You can hold more than one plan if the premiums together stay within £50 a month.

What a given monthly amount buys at your age is shown only in a quote, and a broker can set that beside other over-50s plans when they phone, which costs nothing.

The first two years: what is paid and when

The terms set out limited exceptions for the opening period. Section 5.1 of the terms states the main one: "The lump sum is not payable on death during the first two years of the plan unless you die as a result of an accident."

  • Accident in the first two years: the lump sum is paid on proof of the cause of death, if all payments are up to date. The terms define an accident as a sudden and unexpected event after the plan starts, and exclude deaths caused directly or indirectly by self-inflicted injury, flying other than as a fare-paying passenger, assault or any criminal offence, addiction to or misuse of drugs, alcohol or other substances, and war, civil war, rebellion or riot.
  • Natural causes or a medical condition in the first two years: the lump sum is not paid. Instead the society pays 150% of the premiums paid, provided payments are up to date.
  • After two years: the sum assured is payable, subject to the rest of the terms.

Other providers' opening periods are laid out on funeral cover waiting periods, and guaranteed acceptance life insurance explains why a plan with no health questions has an opening rule at all.

What can catch people out

  • Missed payments. The society cancels the plan once a third successive monthly premium is not paid. A reminder letter allows time to catch up; if payments stay outstanding, cover ends and no premiums are refunded. The older plan summary on the product page (O50.2021.12.PS) says two successive missed months; the terms say they prevail over it.
  • Cancelling. Within 30 days of receiving your plan documents, premiums paid so far are refunded automatically. After that, the terms say there is no refund.
  • A fixed payout. The product page lists the risks that the amount paid on death "is likely to reduce in value because of the effects of inflation", and that "the total premiums you have paid may be greater than the amount payable on death".
  • Smoker status. If medical records show your smoking declaration was wrong, or you start smoking and do not tell the society, the amount paid is reduced to the smoker rate that applied when you applied.
  • Inaccurate answers. If you or someone acting for you gives an inaccurate answer deliberately or recklessly, the society is entitled to cancel the plan and refuse to pay, and may not refund premiums.

When read on 27 October 2026, the product page also offered a Love2shop voucher code worth £125, sent when you make your sixth payment, under the society's own terms. It is an incentive, separate from the cover itself. Whether the conditions above work for you can be covered with the broker when they phone, and it will not cost you anything. The sums behind whether over-50s life insurance is worth it are set out on that page.

Who gets the money: nominations, trusts and tax

Under the Friendly Societies Act, the terms say, the lump sum can be directed to a named individual, several individuals or a registered charity. Where the total sum assured is £5,000 or less, that is done with a nomination form, which can be completed or changed at any time. Where it is over £5,000, the terms say the proceeds cannot be paid under a nomination and a trust must be set up, with a trust form completed. Shepherds Friendly then pays according to the latest valid nomination or the terms of the trust. How nominations work in general is on nomination forms for life insurance, and whether a policy needs to be in trust covers the larger sums.

On tax, the terms say that, on the society's current understanding of HMRC guidelines, money paid from the plan to your estate is free of Capital Gains Tax and Income Tax, but as part of your estate it could be subject to Inheritance Tax. The terms add that tax rules may change. That is the society's wording, not tax advice; the general position is on tax on life insurance payouts.

The Co-op Funeralcare option and the bereavement service

The plan offers an optional Funeral Benefit Option. If chosen, the lump sum can be nominated to be paid to Co-op Funeralcare towards the cost of your funeral. The terms give a discount that depends on the type of funeral your estate chooses.

Type of funeralDiscount
Tailored funeral£250
Essential funeral£100
Direct to cremation or burial£50

The option is for UK residents excluding Northern Ireland. If the funeral costs less than the lump sum, the terms say the estate receives the difference; if it costs more, the estate meets the extra. The discount is not available if the option was chosen and the death was from natural causes within the first two years. How funeral cover plans compare looks at these options across providers.

The plan also gives your estate access to the National Bereavement Service, a not-for-profit organisation that, according to the terms, offers free counselling, guidance and support to the recently bereaved, on 0800 0246 121 (as printed in the terms read on 27 October 2026).

Making a claim, complaining, and what happens if the society fails

After a death, the terms ask the estate to call Shepherds Friendly's Member Services team as soon as possible on 0800 526 249 (the number as read on 27 October 2026); the team explains the claims steps. The society needs a death certificate. If the death is within two years of the plan starting, it also asks for proof of the cause of death, and it may seek medical reports and records.

If you are unhappy with how a claim is handled, complain to the society first. The Financial Ombudsman Service says that, if you do not get a reply within the time limits or are unhappy with the final response, you can bring the complaint to it, and that its service is free.

The Financial Services Compensation Scheme covers customers of a failed insurer only where the Prudential Regulation Authority (PRA) regulated it, and says it repays whole of life assurance claims in full where the insolvency practitioner accepts them, subject to the conditions, limits and requirements in the PRA rulebook. The terms say Shepherds Friendly is authorised by the PRA and call this plan "Whole of Life". To hear how that safeguard would work for a plan like this, ask the broker who rings once your form is in; there is no charge.

Frequently asked questions

Is Shepherds Friendly the same as Scottish Friendly?

No. Scottish Friendly Assurance Society Limited is a separate friendly society, and its over-50s plan has its own terms. Scottish Friendly's plan appears in the over-50s plan comparison.

Do I need a medical to take out Shepherds Friendly over 50s cover?

The product page says you are guaranteed to be accepted regardless of your health, and that no medical questions are asked. The first-two-years rule above still applies to a death from natural causes or a medical condition.

How do I get a Shepherds Friendly over 50s quote?

The product page offers an instant online quote that you can change as often as you like before applying, or you can ring Member Services. If a quote would help before you decide, a broker can ring you back for nothing after you send the form, to go over this plan and the alternatives.

Sources