People in the UK are living longer than ever before
Recent data from Public Health England has shown that people in the UK are now living longer than ever before.
“Average life expectancy has increased steadily in England in recent decades… We have an ageing population. In the UK there are now half a million people in their 90s, more than two and a half times the number in 1985.”
In fact, life expectancy in the UK has now reached 79.5 years for males and 83.1 years for females. In the 1970s, the average life expectancy was just 71 years.
This continued rise in our life expectancy has led to many more people investigating over 60 life insurance.
Life insurance over 60
If you’re aged 60 or over, you’re probably aware of the difficulty in securing term-based life insurance at an affordable price. Why is this?
Put simply, the bigger the risk, the higher the premium – and whether you like to admit it or not, as you get older you also become a higher risk.
However, it’s important to remember that whatever your age, most people can still qualify for life insurance – whether it be a:
- Over 50s plan
- Whole of life insurance
- Traditional term-based life insurance.
When you do pass 60 though, it does mean that you’re best served comparing multiple quotes, in order to secure the best deal.
Before going any further, think about why you’re considering life insurance in your 60s. What is it you want to protect?
Many want to leave some money for their family when they die; others want to use the pay out to cover funeral costs.
There are various policy options available to suit every need and budget.
Knowing the amount of cover you require will help you identify the most suitable protection.
Over 50s plan, (over 60 life insurance without medical)
A hugely popular way of provisioning for the future for those in their 60s (and beyond) is to take out an over 50s plan.
Most insurers guarantee acceptance on an over 50s plan if you’re aged between 50 and 85 and a UK resident.
Like other forms of life insurance, a cash lump sum is paid out to your beneficiaries upon death.
Regarded as the accessible option, it’s worth noting that with over 50s, you need to have held the policy for a minimum period (usually 12 or 24 months) before your loved ones can benefit. This is known as the waiting or qualifying period.
Unlike term life insurance, a major benefit of over 50 plans is that there’s usually no medical exam required. It’s also possible to secure an over 50s premium for as little as £4-per month.
As a result, over 50 life insurance can be an excellent option for those in poor health, or who have previously suffered a medical condition.
In contrast to term-based policies, an over 50s plan is a form of life assurance and therefore guarantees to pay out when you die.
However, it’s important to remember that there’s also a chance that you could pay more in than your loved ones would receive back.
Over 50s plans in summary:
- Guaranteed acceptance between 50 – 85 years
- Straightforward application process
- No medical exam required, (if you smoke this could affect your premium)
- 12 or 24 months waiting period
- Good option for those in poor health
- Guarantees to pay out when you die
- Some plans offer free cover after you turn 90
- Premiums start from as little as £4-a-month
- No cash-in value.
Visit our over 50 life insurance page for more information.
Whole of life insurance
If you don’t have any serious health issues and are still young enough, a whole of life insurance policy may be more beneficial.
Whilst taking out an over 50s plan is advantageous for many, if you’re in your 50s or just turned 60, fit and healthy you may find that a whole of life policy provides a greater level of protection, for a similarly premium.
Like an over 50s plan, whole of life cover is a form of life assurance, as a pay out is guaranteed (or assured) when you die, but it does require medical information to be supplied. There’s no set policy term period.
Yet, the difference between a whole of life insurance plan and an over 50s plan is more than guaranteed acceptance and the monthly cost of premiums.
“A regular whole of life insurance plan could give you at least 40% more cover than its heavily advertised relation, the guaranteed over 50 plan.”
Having said this, there’s still very much a place for over 50s life insurance. If you want affordable cover, with a quick and easy application process that doesn’t require a medical, then an over 50s plan is for you.
Whole of life in summary:
- Guarantees to pay out when you die
- Good option if you’re in your early 50s and healthy
- Pay premiums for as long as you live
- Hard to get affordable cover if you’re older or had health problems
- Lengthier application process, (compared to over 50s plans)
- Application involves health questions and/or medical exam
- Reviewable or guaranteed premiums possible
- Greater sum assured, (compare to over 50s plans)
- No cash-in value, (non-investment policies).
Visit our whole of life insurance page for more information.
Traditional term-based life insurance for over 60s
It’s not impossible to secure a term-based life insurance policy when you’re in your 60s, although for many the costs just don’t add up.
Whilst possible, insurers are likely to only insure you for a short term. What’s more, the monthly premiums are likely to be very expensive because you’ll be regarded as high risk.
A term-based policy will only pay out if you pass away within the term and therefore doesn’t guarantee a pay out.
As a result, over 50s and whole of life protection tend to be much more popular for most over 60s policyholders.
Term-based life insurance in summary:
- Cover can become expensive as you get older
- The insurer will probably only insure you for a short-term
- Only insured during the policy term (pay out not guaranteed)
- Only pay premiums for a set term
- Greater sum assured, (compare to over 50s plans)
- No cash-in value.
Visit our term-based life insurance page for more information.
“An older population: The number of people aged over 60 will more than triple to over two billion by 2050, creating huge extra demand for retirement solutions.”
Funeral plans for over 60s
Across the UK, the average cost of a funeral has risen by an astonishing +122% in the past 14 years.
The average cost of a funeral is now £4,271 and is projected to rise to nearly £5,000 by 2022.
With these alarming figures in mind, we believe it’s now more important than ever that you provision for after you’re gone, so as not to burden your loved ones with debt.
As a result, many over 60s are now looking to beat the rising costs of funerals by planning ahead.
An over 60s prepaid funeral plan allows you to choose your preferred plan and pay for the funeral director’s services at today’s price.
“About 1.3 million people in the UK have one of these plans, and it’s a rapidly growing market, with more than 200,000 sold last year.”
However, with monthly premiums available for as little as £4-a month, many find that an over 50s plan provides extra financial protection and covers more than just a funeral.
Whereas a prepaid funeral plan simply covers the funeral directors costs, an over 50s or whole of life policy could cover all funeral costs, as well as unpaid bills and outstanding debts.
It could also be used as an inheritance fund, or to help allow your spouse to maintain their current living standards.
Again, it all comes down to the level of cover you require, your budget and what you want to protect, in order to determine the best option for you.
Funeral plans in summary:
- Guaranteed acceptance
- Freeze funeral costs at today’s rate
- Save your loved ones the emotional burden of planning your funeral
- Ensures you get the funeral you want
- Pay in full, or in instalments
- Won’t cover anything other than a funeral director costs.
Visit our funeral plans page for more information.
Life insurance for over 65
At the age of 65, all of the previously mentioned life insurance types are available to you.
However, it’s important to consider whether you’ll be able to afford the ongoing premiums into retirement.
Whilst retirement brings with it a lot of freedom, it can also present a tightening of your budget.
Therefore, when taking out a policy, it’s important to consider whether you’ll still be able to afford the premiums on your new budget.
Failure to keep up with your premium payments will deem the policy invalid.
Not only would this mean that your family wouldn’t receive a pay out, but that all of the money you have paid in would be lost.
Are you in your 70s? If so, read our in-depth post on over 70s life insurance options.
Over 60 life insurance calculator
There are a number of ways to determine how much life insurance you require and how much cover your budget will allow.
Many websites now provide an over 60 life insurance calculator. However, life insurance is strongly influenced by your personal circumstances and as a result, these can cause disappointment.
It’s possible, that by using such calculators you would expect to secure more cover or pay considerably less than in reality.
However, it’s possible for you to calculate how much over 60 life insurance you require.
It’s important to consider what it is you’re looking to protect and calculate the amount of cover you would require to provide this level of protection.
For example; total outstanding debt + funeral costs + current living costs + inheritance = amount of life insurance you require.
Similarly, when determining the budget you can afford to spend on life insurance, you should consider your disposable income.
From this, you can then contact a life insurance broker, who’ll take this amount into account and provide you with all the options available.
The benefits of taking out cover in later life
Whether you’re in your 50s, 60s, 70s or even 80s and regardless of which cover option best suits your specific needs, there are some common benefits:
- Cover any outstanding debts
- Meet future living costs
- Cover funeral costs, (average cost now £4,271)
- Leave a lump sum inheritance behind for loved ones.
Life insurance may get more expensive as you get older, but this shouldn’t put you off.
With many of us feeling younger than ever before (and live longer), it’s never too late to help your loved ones prepare for the future.
Plus, there’s a great range of over 50 plans available that don’t require a medical exam and can cost from just £4-a-month.
Reassured are here to help save you time and money
Once you’ve decided which option best meets your needs, it’s always a good idea to compare quotes in order to find the best life insurance for over 60.
At Reassured we can help you find the perfect policy.
We’ll compare a wide range of insurers on your behalf, presenting you with the best available quotes to choose from. We can also help explain any confusing insurance jargon.
And the best bit, we never charge you a fee for our award-winning broker service.