All you need to know about life insurance over 60

All you need to know about life insurance over 60  main image

If you’re thinking ‘can I still get  life insurance over 60…?’, the simple answer is ‘yes’.

However, as we age the more expensive life insurance becomes. Basically, the older you get, the greater the risk to the insurer and so the higher the premium. But don’t let that put you off. Life insurance over 60 is potentially a key financial planning tool that can start from as little as £4 a month.

What is the best life insurance for the over 60s?

Ultimately, this will depend on your personal circumstances and what you can afford.  You have a choice of two types of over 60 life insurance:

1. Over 60s life insurance with no medical questions - is more commonly known as over 50 life insurance, but don’t hold that against it. With these plans there are no medical questions to answer. The state of your health doesn’t matter, you won’t be turned down and it guarantees to payout when you die. 

2. Whole of life insurance with medical and lifestyle questions  - If you’re happy to answer questions about your health and lifestyle, then a regular whole of life insurance plan may be worth considering. The application process is longer however if you are accepted, the cash sum could be 30% bigger than with a guaranteed over 50 plan.

There is obviously a risk your application could be turned down, but if it is, you always have the over 50 plan as a fall back.

The cost of life insurance for 60s

The cost of life insurance for a 60 year old is based on the type of life insurance you want and life cover required. For example, a healthy 60 year old non-smoker paying £10 a month may get £2,487 with guaranteed life insurance for the over 60s or £3,164 with regular whole of life insurance. (correct as at 19th November 2020)

Why bother with guaranteed life insurance over 60?

Guaranteed life insurance plans are an option if you want to leave some money when you die but would rather not have to go through any medical or lifestyle checks. As long as you are aged 50 to 80* and live in the UK, you are guaranteed to be accepted. The application process is quick and simple and provided you abide by the terms of your policy, a cash sum is guaranteed to be paid out. 

This money could be used to:

  1. Help with funeral costs
  2. Pay off outstanding debts or loans
  3. Leave some money for loved ones 
  4. Leave some money for charity

Monthly premiums are payable for life or until you are 90*, so there is a chance you could pay more into the plan than the cash sum paid out. You are however covered for the full cash sum after an initial period of one or two years*.

Can I do more to help with my funeral?

If you want to leave money to help with funeral costs, you could consider an over 50 plan with a funeral benefit option such as Sunlife, Royal London, One Family and Aviva. The way it works is simple. You agree to have your cash sum paid directly to a specified local funeral director and in return you receive additional money towards the cost of your funeral. 

What other options are available ?

If you want a plan that gives you some flexibility, then Royal London Over 50s life insurance or British Seniors cover may be worth a look.

British Seniors offer an increasing benefit option that protects your policy from the effects of inflation. Royal London lets you reduce your premium and offers a protected payout, which pays 50% of cash sum if you need to stop paying, as long as you’re over half way through the term. 

How are the monthly premiums calculated? 

Your monthly premium will be calculated based on your age, how much life cover you want and the insurance provider you choose, as rates vary between them. Some companies will also take into account whether you smoke, so you may get a higher cash sum if you don’t.

What should I do next?

To quickly see how much cover you could get, compare over 60s life insurance quotes using our simple and free service.  Or to find out more, including reviews of the leading providers, take a look at our guide to over 50 life insurance.

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