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 half times the number in 1985.”[1]

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.

Over 60s life insurance - life expectancy rates

Over 60 life insurance - life expectancy in the UK


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Life insurance over 60

If you’re 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 an over 50s plan, whole of life policy or traditional term-based life insurance.

When you do pass 60 though, it does mean that you’re best served shopping around to compare 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 to their family when they die; others want to use the pay out to cover their 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, (life insurance for over 60 no 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 life insurance, a cash lump sum is paid out to your beneficiaries upon death.

Regarded as the affordable and 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 depending upon the insurer) 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. Plus, it’s possible to secure an over 50s premium for as little as £4-per month.

As a result, over 50s 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:

Visit our over 50 life insurance page for more information.

Over 60s life insuranceOver 60s life insurance in the UK


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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 priced 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.”[2]

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:

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 a higher risk.

A term-based policy will only pay out if you pass away within the policy 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:

Visit our term-based life insurance page for more information.

Number of people aged 60 or over is set to tripleThe number of people aged 60 or over to triple worldwide

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.”[3]

Funeral plans for over 60s

Across the UK, the average cost of a funeral has risen by an astonishing 112% in the past 13 years. The average cost of a funeral is now £4,078 and is projected to rise to nearly £5,000 by 2022.[4]

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.”[5]

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 for 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:

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.

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:

Life insurance may get more expensive as you get older, but this shouldn’t put you off. With many of us feel 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 you save time and money

Once you have decided which option best meets your needs, it’s always a good idea to compare quotes in order to find the best over 60 life insurance.

At Reassured we can help you with this. We’ll compare a wide range of insurers on your behalf, offering you the best possible quotes to choose from (and explain any insurance jargon that may be confusing).

And the best bit, we never charge you a fee for our award-winning broker service.


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Sources:

[1] https://www.gov.uk/government/publications/health-profile-for-england/chapter-1-life-expectancy-and-healthy-life-expectancy

[2] https://www.over50choices.co.uk/community/ashleys-blog/details/id/7838/whats-the-difference-between-a-guaranteed-over-50-plan-and-regular-whole-of-life-insurance

[3] https://www.pwc.com/gx/en/insurance/pdf/pwc-life-insurance-2020-competing-for-a-future.pdf

[4] https://www.sunlife.co.uk/siteassets/documents/cost-of-dying/cost-of-dying-2017.pdf

[5] https://www.theguardian.com/money/2017/sep/09/prepaid-funeral-plans-experts-warn-national-scandal