Can you get life insurance if you’re over 80 years old?
Yes, it’s possible to secure life insurance in the UK even if you’re over 80.
It’s not too late to protect your loved ones from major expenses such as funeral costs after you’re gone.
However, as you would expect your cover options are more limited as you age.
What’s more, your monthly premiums would be considerably higher when in your 80s.
In the eye of the insurer, an applicant over the age of 80 would be regarded as high-risk.
This is because statistically you’re more likely to fall ill and your life expectancy is shorter.
But, this doesn’t mean there are not affordable options available.
Read on to learn more…
Life insurance for senior citizens
There could be a number of reasons why you’ve decided now is the time to take out life insurance.
A major life event or the loss of a loved one may have been the prompt to research your policy options.
Or it may simply be that you’ve reflected on how your loved ones would cope financially if you were to pass away.
Particularly if you were to leave behind a dependant also in the later stages of life.
The following cover options would be the most obtainable for those over 80:
- Funeral plan (protects you from rising funeral costs)
- Whole of life insurance
- Over 50s plan (up to 85).
Funeral plans over 80
You can secure a funeral plan now and protect your family from the increased cost of funerals in the future.
Unlike life insurance, funeral plans don’t require ‘acceptance’.
This means that they can be taken out by anybody regardless of health or age.
This is ideal if you’re over 80 and have a history of poor health.
With an alarming increase of +122.5% in the cost of a funeral since 2004, it’s inevitable costs will continue to rise.
The average cost of a basic funeral in the UK is currently £4,271.
In 5 years time, the average cost of a basic funeral is estimated to be £5,120.
A funeral plan allows you to pre-pay for your funeral, locking in today’s rate and ensuring the inflated cost doesn’t burden your family.
You can pay for a plan with a one-off payment or instalments and once fully paid the plan remains in place for life.
Unfortunately, only 1% of participants are fully aware of their loved one’s funeral wishes, adding to the stress of planning the ceremony.
Thankfully, funeral plans also offer the possibility of pre-arranging your funeral.
This allows you to specify exactly what it is you want for the day and removing this added task from your loved ones at an already stressful time.
Finally, when arranging a funeral plan it’s important to account for third-party costs, such as minister fees and a memorial.
Whilst many funeral plans will cover the funeral director costs, third-party costs attached to your ceremony don’t tend to be included.
In the UK on average £2,061 alone is spent on third-party funeral costs for the send-off.
Co-op funeral plans for over 80s
At Reassured we compare funeral plans to help you secure the right option, at the best price.
A number of options of which come from Co-op Funeralcare.
Unlike most other providers, Co-op funeral plans cover all third-party costs.
This means that when the day arrives your loved ones won’t have to pay for anything extra.
There are a number of different tiered funeral plans available through Co-op, depending on your personal preference (and budget).
- Simple funeral plan (Restricted days/times, simple coffin)
- Bronze funeral plan (Choice of days/times, basic wooden coffin)
- Silver funeral plan (Choice of days/times, premium wooden coffin, transport for loved ones)
- Gold funeral plan (Choice of days/times, wood veneer coffin, multiple forms of transport for loved ones).
Your chosen package will shape the cost of your funeral plan.
Payment can be made in the following ways:
- As a one-off payment
- A one-off deposit followed by 6 or 12 interest-free payments.
It’s worth noting that from the age of 80 or older, you’re unlikely to be able to take out a long-term instalment plan.
When arranging a Co-op funeral plan through a one-off payment, it’s possible to benefit from their ‘best price guarantee’.
Provide a like for like quote and we’ll match it on behalf of the Co-op.
The cost of life insurance over 80
The cost of life insurance at any age is calculated from the risk you pose to the insurer.
Personal aspects including your age, health, policy type, cover amount and smoking status will be taken into account and your premiums priced accordingly.
The exception to this is an over 50s plan, where no medical information is taken into account.
Whole of life insurance over 80
A whole of life insurance policy is guaranteed to pay out a cash lump sum to your loved ones after you pass away.
The sum assured (pay out amount) is commonly used to cover funeral costs, provide an inheritance or clear outstanding debts.
Whole of life can also be used to cover any loss from inheritance tax, (if your estate is worth over £325,000).
To secure this type of cover and achieve affordable premiums as a senior citizen, you would need to be in relatively good health and without any long-standing illnesses.
Life insurance providers that offer whole of life cover for over 80s are few and far between.
However, at Reassured, we compare numerous solutions to help you find the best deal. Including policies from Legal & General who offer cover up to 84.
The sum assured available with whole of life is significantly higher than an over 50s plan, however, it could be more costly depending on the level of cover required.
Get in touch and we can compare quotes on your behalf to help you determine if whole of life is right for you.
Life insurance over 80, (no medical exam)
Did you know that you’re not required to answer any medical questions to secure an over 50s plan.
You’re guaranteed acceptance with no medical if aged between 50 – 85 and a UK resident.
As a result, this cover is ideal for anyone within this age range who has experienced less than favourable health.
With this type of policy your family would be assured a pay out after you’re gone.
The pay out is usually between £3,000 – £25,000, but this varies depending on the insurer and is likely to be towards the lower end of the scale the closer to the upper age bracket you are.
A pay out is commonly used to cover a funeral, clear any outstanding debts in your name or provide an inheritance.
Premiums can stop at the age of 90 with some insurers, however, your cover would continue until you pass away.
The absence of any medical questions means the application is relatively quick and simple compared to other policies.
There is a downside of the over 50s plan for those over 80.
Whilst acceptance is guaranteed, insurers mitigate their risk by implementing a waiting period (or qualifying period).
This starts at the beginning of the policy and usually lasts 12 or 24 months depending on the insurer.
In a nutshell, you wouldn’t be covered during this period if you were to die from natural causes, although, any paid premiums would be refunded.
Term life insurance for over 80s
The most common form of life insurance, term life insurance, provides cover for a specified period of time.
Once the term of the cover has expired, the policy finishes and if you didn’t pass away, no pay out is issued.
Whilst most insurers will accept term based cover up to the age of 84, the maximum term length offered would be 5 years and premiums will be extremely costly.
As a result, other forms of cover are likely to be more suitable/cost-effective.
Joint life insurance
Unfortunately, as an over 50s plan or whole life insurance are the most likely options for those over 80, a joint policy is unlikely to be obtainable.
Due to the guaranteed pay out associated with these policies, insurers don’t offer the option of a joint policy as the risk is too high.
Joint life insurance policies offer protection for two lives at once and a pay out is made upon the first death.
As a result, other forms of cover may be more suitable/cost-effective.
Life insurance vs funeral plan?
It’s common for a whole of life policy, over 50s plan or a funeral plan to be taken out by those later in life.
However, if you’re over 85 a life insurance policy is usually unobtainable.
Applicants for life insurance over 80 and up to the age of 85 may potentially secure enough cover for a funeral, plus other expenses.
As a result, the benefits of the funeral plan option in most circumstances outweigh those of life insurance.
Anyone is eligible for this type of cover and if your focus is to protect your loved ones from funeral costs then this could be the best option.
- Pay the cost of a funeral at today’s rate
- Save your family from the burden of arranging a funeral
- Guaranteed acceptance regardless of age or health
- Select a funeral plan to suit your budget
- A choice of payment options.
Over 80 life insurance and funeral plan
If you already have life insurance in place (or are looking to secure cover), you can also choose to take out a funeral plan.
You could secure the best price for your funeral now, whilst freeing up some of your life insurance proceeds to be used elsewhere.
Contrary to popular belief and unlike other types of insurance, you can take out multiple policies.
Terminal illness cover for over 80s
At Reassured, all life insurance policies come with terminal illness cover as standard.
This means that if you’re diagnosed with a terminal illness and given less than 12 months to live, you can make an early claim.
The early pay out could be used for medical treatment, to get your financial affairs in order or simply to enjoy with your family.
Critical illness cover for over 80s
Critical illness cover allows you to make a claim if you were diagnosed with a critical, yet not terminal, illness.
However, due to the high-risk to the insurer, it’s highly unlikely you’ll be able to arrange critical illness cover in your 80s.
Over 80 life insurance in trust, (avoid 40% inheritance tax)
Writing your life insurance in trust enables you to ensure that your loved ones benefit fully from your policy.
The person you place in trust (the trustee) would manage your pay out and ensure it’s distributed according to your wishes.
This option doesn’t cost anything and has the following benefits:
- Avoid (or minimise) 40% inheritance tax – In the UK, if your estate exceeds £325,000 as an individual then you would be subject to 40% inheritance tax. However, writing your life insurance in trust protects your sum assured from this tax bill as it won’t be considered part of your estate.
- Avoid the probate process – Your family could receive the funds in just a few weeks, in time to pay for the funeral and for other urgent expenses.
- Take control – By appointing a trustee, you are able to specify exactly who you wish to receive the funds and in what proportion you would like the pay out distributed.
At Reassured we provide customers with a free trust service, where our dedicated team can help you with the application process.
Compare quotes for over 80 life insurance
Looking for life insurance or a funeral plan when you’re over 80 can be tricky, particularly as it may seem your options are limited.
However, finding the right cover at the best price is still achievable by comparing quotes, (as prices can vary).
You can use an FCA regulated broker such as Reassured, to help compare quotes from the top providers.
We can also help you with the application, explain the jargon and ensure that you’ve all the information needed to make an informed decision.
All of the funeral plans we provide are also fully regulated by the Funeral Planning Authority (FPA) to give you peace of mind that you and your investment is fully protected.
Lastly, our awarding-winning broker service is completely free to use – so why not seize the day?
At Reassured, we will provide you with quotes from Co-op funeral care, as well as any information required regarding the best funeral plans.
This allows you to make a fully informed decision.
All of the funeral plans we provide are fully regulated by the Funeral Planning Authority (FPA) ensuring you and your money are protected.