Money Expert > Life Insurance > Over 60s life insurance

Over 60s life insurance

Last updated: 03/10/2022 | Estimated Reading Time: 5 minutes

Taking out life insurance is something people start to think about as they get older. Whether it’s to take care of family or ensure funeral costs are covered, a good policy can give peace of mind to you and your loved ones.

When you get past 60, you might worry that finding a policy might be impossible. Fortunately, this isn’t the case, with a range of different products and options available to you. To make things easy, we’ve broken down over 60s life insurance, to give you an idea of what’s going to work for you.

In This Guide:

What is over 60s life insurance?

As you may have guessed, over 60s life insurance is any life insurance product that is available to someone over the age of 60. There are different types available such as term life, whole of life and guaranteed over 50s plans. Once you have established terms and been accepted, you will pay a monthly premium, and should you pass away, a lump sum will be given to a beneficiary of your choosing. 

Over 60s qualify for a guaranteed over 50s plan (anyone who is a UK resident aged between 50 to 85 is eligible). What sets a guaranteed over 50s plan apart from other types of life insurance policies, is that they come with "guaranteed acceptance". This means that no matter your medical history or status you will be accepted for cover.

Many policies will have a minimum payout term, and if you die before that you will not receive a payout but you will have your premiums returned. These are generally between one and two years.

Best types of life insurance for over 60s

When it comes to life insurance, there’s no one-size-fits-all policy. In fact, there are many different types of plan available, which all work in slightly different ways. The type of policy that works best for people over the age of 60 depends on the policyholder’s specific circumstances and preferences:

Whole of life cover:

This type of policy keeps running you until the end of your life. That means that as long as your continue to pay your premiums, you are covered and will receive a payout when you die. As a payout is almost always guaranteed, the amount you would receive is generally lower than a fixed-term policy.

Fixed term cover:

If you only need life insurance for a certain period, then fixed-term cover is probably for you. It protects for a set period that you would agree with your insurer. Once that time is up, you can either renew or choose to move on. Many will opt for this if they need to ensure that their family are protected up until a certain point, e.g before their children leave home.

Whereas whole of life policies are fairly uniform, fixed-term generally have three different types.

Increasing term:

This type of policy increases in both its premiums and payouts as time goes on. It’s designed to keep in step with inflation and is best utilised if the money will go towards living expenses

Decreasing term:

Decreasing policies go down in both cost and payout over their course. These are often tied to long-standing debts such as mortgages, ensuring they're paid off should you die.

Level term:

If you choose a level policy, then your premium and the payout are fixed throughout the term. These are the most straightforward fixed term policies, but may need to be adjusted should your situation change.

Funeral plan:

Although not technically a type of life insurance policy, funeral plans fulfil a similar role. With these policies, you lock in a funeral price at the current rate, and when you die, funds are released to pay for the costs. 

However, premiums need to be paid over less time than life insurance, generally between one and ten years, so it can be more expensive in the short term. For more info, check out our page comparing funeral plans and over 50s life insurance.

How much does over 60s life insurance cost?

This will depend on your situation, but can vary hugely. When an insurer takes your application, they will boil it down to how much risk there is of your making a claim, and how quickly. Just because you are in your autumn years, doesn’t necessarily mean you have to pay a huge amount, although you will often pay more than someone younger. 

If you are in good shape, without any chronic health conditions, you can easily command a good premium. In general, an insurer will look at the following criteria before deciding on a) whether to take you on as a customer and b) how much to charge:

  • Your age
  • Whether you smoke
  • How much you drink
  • Your occupation
  • Your medical history
  • Any unusual or dangerous hobbies/lifestyle choices

Should I get over 60s life insurance?

If you are worried about the financial security of those close to you should you pass, then life insurance can be a great way to alleviate these concerns. Sometimes, a full life term isn’t necessary, and you may decide to opt for something more short-term to address a particular, time-sensitive obligation.

If you're interested to see what type of over 60s policy is going to work for you, then you can take a look at all of the best options with our life insurance comparison tool.

Life Insurance,

easier than ever.