Can someone over 80 get life insurance?

Yes, it's possible to secure over 80s life insurance in the UK.

It's not too late to protect your loved ones from major expenses, such as funeral costs, after you're gone.

Even in the later stages of life, you may still have a number of options available to you.

Policy options include:

An over 50s plan may be the most suitable life insurance policy for over 80s, as this policy type guarantees acceptance to people aged 50 – 85.

You may consider whole of life insurance if you’re in your early 80s and in good health.

The cost of cover will depend on what it is you're looking to protect and your individual circumstances.

A funeral plan allows you to pay for your funeral in advance. Acceptance is guaranteed for people over 80 and you can spread the cost in monthly instalments.

The cost of a funeral plan depends on the plan and payment option you choose.

Make the most of our award-winning, FCA regulated brokerage service to compare multiple quotes for either life insurance or funeral plans, on your behalf.

We can help you find the most suitable cover, at the best price. Get your free quotes today.

Read on to learn all about your over 80 policy options...

Do I need life insurance over 80?

As you enter your 80s you may ask whether you still need life insurance.

The answer is, it depends on your financial situation and whether you have sufficient savings.

Fortunately, people are living longer than ever before, however, this means our financial protection needs to evolve too.

Generally speaking, if you have dependants such as grandchildren, children or a partner, you’ll benefit from some form of cover.

Whilst it’s unlikely that you’ll require life insurance to cover a mortgage at this stage in life, there are other costs to consider:

Whilst you won’t require life insurance to cover a mortgage there are other costs to consider:

  • Can you afford the cost of a funeral? (Average cost £4,417[1])
  • Do you need to provision for the living costs of a spouse?
  • Would you like to leave behind an inheritance?
  • Do you have outstanding debt you want to clear?

How much life insurance do you need?

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The average level of debt (minus a mortgage) in the UK is £15,385.

Factoring in any outstanding debts in your name when arranging life insurance ensures this burden is not passed to loved ones.

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You may wish to leave your loved ones an inheritance or lump sum gift upon your passing.

Factoring in the gift amount when arranging your cover will ensure the pay out amount will be sufficient to provide your loved ones with this selfless gesture.

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According to SunLife, the average cost of a UK funeral is now £4,417, whilst the total cost of dying is £9,493.

This is a 130% increase over the past 16 years and shows no signs of slowing down.

A significant cost which should be factored into the amount of life insurance you secure.

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If you are one of the 65% of the UK who are lucky enough to have savings, this could be used as protection if you were to pass away.

Any pay outs from existing life insurance policies and investments can also be used as financial protection for your loved ones if you were no longer around.

Factor this into your required cover amount.

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Your total cover estimate

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Let us help you find your best quotes

Best life insurance for seniors over 80

The best life insurance will vary depending on what it is you're looking to cover.

Each policy type is better suited to protecting different aspects of your life.

And the cost is heavily influenced by the type of cover you require, as well as your personal circumstances.

At Reassured, we can provide you with all the information you need to determine the best over 80 cover to meet your unique needs.

The cost of life insurance over 80

The cost of life insurance is calculated based on a number of factors.

These include:

Each of these aspects are taken into account, the level of risk would be assessed, and your premiums priced accordingly.

As a result, due to your older age, it's likely your premiums will be more expensive than your younger counterpart.

However, it's still possible to secure affordable life cover from just 30p-a-day.

Contact our award-winning team who'll compare quotes on your behalf to help secure the best deal.

Whole of life insurance over 80

  • Guaranteed pay out
  • Greater sum assured available compared with an over 50s plan, (up to £200,000)
  • Best suited to those in later life who are in good health
  • Available up to the age of 84

A whole of life policy is guaranteed to pay out a cash lump sum to your loved ones after you pass away, (as long as you pay your premiums).

This policy type tends to provide a higher sum assured than an over 50s plan and is commonly used to cover funeral costs, provide an inheritance or clear 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 obtain 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're able to help arrange cover up to the age of 84 years old.

Get in touch and we can compare quotes to help you determine if whole of life is right for you.

As with all policies, monthly premiums can vary significantly from insurer to insurer. So, it's best to compare quotes.

Key benefit: A guaranteed pay out and you could secure a far larger pay out sum, compared with an over 50s plan, (if in good health).

Life insurance over 80, (no medical exam)

  • Guaranteed pay out
  • No medical information required
  • Guaranteed acceptance for all UK residents aged 50-85
  • Premium payments can cease at age 90

An over 50s plan offers guaranteed acceptance to all UK residents aged 50-85 and requires no medical exam.

As a result, this cover is ideal for anyone within this age range who has experienced poor health.

With this type of policy your family would be assured a pay out after you're gone, (as long as you pay your premiums).

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 you are to the upper age bracket.

At Reassured, we can arrange you up to £25,000 worth of cover.

A pay out is commonly used to cover a funeral, clear outstanding debts or provide an inheritance.

Premiums can stop at the age of 90 with some insurers, however, your cover would continue until you pass away.

A benefit offered through Reassured with many of our over 50s plans.

The waiting period, (before a claim can be made)

Whilst acceptance is guaranteed on an over 50s plan, insurers mitigate their risk by implementing a waiting period.

The waiting period starts at the beginning of the policy and lasts 12 or 24 months depending on the insurer.

It means if you were to pass away due to natural causes before this period has elapsed, no pay out would be made. (However, all premiums paid would be refunded).

To determine whether an over 50s plan is the best solution for you, simply get in touch.

Our team will provide you with all the information you need to make an informed decision.

Key benefit: Guaranteed acceptance for all UK residents aged 50-85 and no medical questions or exam on application.

Funeral plans over 80

  • Avoid rising costs of a funeral
  • Lock-in today's rate
  • Guaranteed acceptance
  • Plan the funeral in advance according to your wishes
  • Pay in full or spread the cost over 6 or 12 months with no additional fees

A funeral plan allows you to pre-pay the cost of your funeral at today's rate, avoiding future price rises.

As acceptance is guaranteed, you’ll have no trouble securing a funeral plan in your 80s.

You can pay for a plan in full or by monthly instalments, and once the plan is fully paid it remains in place for life.

A funeral plan also gives you the option to arrange the services for your funeral in advance and record your final wishes.

This means your loved ones won’t have to worry about all these details when the time comes.

The rising cost of funerals

The average cost of a funeral has risen 130% since 2004 and shows no sign of slowing down[1].

With an average basic funeral estimated to cost £5,285 in 5 years, the benefits of securing today’s rates speak for themselves.

Cost of funerals infographic UK

Third-party costs

When arranging a funeral plan, it’s important to account for third-party costs, such as cremation or burial fees.

Whilst many funeral plans will cover funeral director costs, third-party costs attached to your ceremony may not be included.

However, funeral plans arranged through Reassured guarantee to cover all third-party cremation fees and minister fees.

They also guarantee to either cover all your third-party burial fees or provide a generous contribution towards these, depending on the plan you choose.

Key benefit: You can lock in the cost of a funeral at today's rate, avoiding future price rises.

Over 80 life insurance vs funeral plan

The key difference between over 80 life insurance and a funeral plan is the long term cost.

The monthly cost of a funeral plan is likely to be more expensive on a short-term basis.

However, the price you pay is fixed and once the plan has been paid in full, your cover remains in place until it’s needed.

Monthly premiums for life insurance may be less expensive, but premiums must be paid until you pass away (or until your 90th birthday), meaning you can pay more into your policy than what it pays out.

Also, as someone in their 80s, the amount of life cover you can secure may not be sufficient to cover all your funeral costs.

One other key difference is that a funeral plan allows you to lock-in your funeral costs and protects your loved ones from higher funeral prices in the future.

Whereas the value of your life insurance policy won’t increase in line with inflation or rising funeral costs (unless you have an increasing life insurance policy).

You may like to read our in-depth article on the pros and cons of a funeral plan.

To help determine whether life insurance or a funeral plan is the best option for you, contact Reassured.

  Over 50 plans Whole of life Funeral plans
Guaranteed acceptance Yes No Yes
No medical questions Yes No Yes
Quick & easy application Yes No Yes
Protected against inflation No No Yes
High value payout No Yes No
Guaranteed payout Yes Yes No
Terminal illness cover Yes Yes No
Financial Conduct Authority (FCA) registered service Yes Yes No
Funeral Planning Authority (FPA) regulated No No Yes

Over 80 life insurance and funeral plan

If you already have life insurance in place, you could choose to also take out a funeral plan simultaneously.

You can 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.

Although, this is subject to your available budget as would require you to pay two premiums.

What happens to life insurance after age 80?

Once your life insurance has been arranged, it won't be affected by your age.

Typically, the cover agreed at application will remain valid and unchanged until a pay out is made, even after you pass 80.

However, there are two exceptions.

Firstly, most life insurance providers will only provide term life insurance until an upper age limit.

At Reassured, this is 84, although some insurers may have a lower threshold.

If you have a term life insurance policy, it's important to be aware of how long your cover lasts and to understand at what age the cover will cease.

Secondly, some over 50s plans only require you to make premium payments for a specified number of years.

At this point in time, premium payments will cease but cover will remain in place for the rest of your life.

Typically, this is on your 90th birthday or 30 years into the policy.

This will vary between providers and it's important to review your individual policy.

Critical illness cover

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.

Terminal illness cover

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 one exception to this is an over 50s plan.

An early pay out could be used for medical treatment, to get your financial affairs in order or simply to enjoy with your family.

Term life insurance for over 80s

  • Pays out a lump sum to your loved ones if you pass away within the term
  • Provides up to £200,000 worth of cover
  • Provides cover up to the age of 84 years old

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 high.

As a result, other forms of cover are likely to be more suitable/cost-effective.

To determine whether or not term life insurance is the most suitable option to suit your needs, get in touch with our team.

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 a joint option, as the risk is too high.

Joint life insurance policies offer protection for two lives simultaneously 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 for elderly parents over 80

As your parents enter the later stages of life, it's not uncommon to look at arranging life insurance on their behalf.

It's possible to do this, however, the rights to the policy will remain in the policyholder’s name.

This means that initiation of the policy, changes to the policy, trust agreements and cancellation will require their permission.

The various policy types discussed previously are all available to arrange on behalf of your elderly parents.

Simply get in touch with Reassured today to determine the options available to you.

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 the 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 you are 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're able to specify exactly who you wish to receive the funds, how much and when

At Reassured we offer customers a free trust service, where our dedicated team can help you with the application process.

Life insurance for senior citizens

There could be a number of reasons why you've decided now is the time to make financial provisions.

A major life event or the loss of a loved one may have been the prompt to research your 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 an elderly or vulnerable dependant.

In any case, preparing for the future financial security of your loved one's will provide peace of mind for your remaining years.

Compare quotes for over 80 life insurance

Looking for life insurance or a funeral plan when you're over 80 can be tricky.

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 compare quotes from insurers, saving time and money.

We can also help you with the application process, explain any jargon and ensure that you have all the information required.

All of the funeral plans we provide are fully regulated by the Funeral Planning Authority (FPA) to give you peace of mind that you're fully protected.

Lastly, our awarding-winning broker service is completely fee-free - so why not seize the day?

Sources:

[1] SunLife (2020), Cost of Dying Report, sunlife.co.uk/costofdying2020

Related articles:

Our Providers

At Reassured, we will provide you with quotes from Co-op Funeral Care, Dignity Funeral Services and Simplicity Cremations.

All of the funeral plans we provide are fully regulated by the Funeral Planning Authority (FPA) ensuring you and your money are protected.

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