Over 70s life insurance
Last updated: 27/04/2022 | Estimated Reading Time: 4 minutes
As you get into your 70s, you may - if you haven’t already - start thinking about leaving something behind for your family. This can come in many forms. One of the most popular is an over 70s life insurance policy.
While you might think that finding insurance at that age will be hard, it isn’t always the case. In fact, many companies specialise in providing it. So, to help you understand if it’s going to work for you, we’ve put together a quick guide on over 70s life insurance.
As those over the age of 70 will differ dramatically in health from younger age groups, a separate type of policy is required. Over 70s life insurance, like over 50s life insurance, offers ‘guaranteed acceptance’, no matter your medical status or history.
Another difference is that over 70s life insurance will often have a maximum term or age limit. For example, if you are 75, an insurer may say your cover will only run until you’re 80. If there is no limit, then you are likely to pay much higher premiums.
Aside from that, they will operate much like a normal life insurance policy. Once the terms have been agreed upon, you pay your premiums and if you die during that period, your beneficiaries will receive a payout.
Within reason, there are no limits on what that money can be spent on. Generally, people use it to provide for their family or pay for certain expenses like funerals or mortgages.
Whole life cover ensures that you are protected until the day you die. This means that as long as your cover is valid, and you stick to the stipulations of your contract, a payout is guaranteed. For people aged over 70, this type of life insurance policy can be quite expensive.
On the other side, fixed-term cover only protects you for a certain period. That means if you die outside of the agreed period, your beneficiaries will not receive a payout.
There are generally three types of fixed-term life insurance:
This type of policy sees its payout and premiums over time. This way, the amount your beneficiaries will receive keeps in step with inflation.
Decreasing policies do the opposite, with premiums and payouts gradually decreasing. Generally, these are used to mirror certain obligations like mortgages, so you pay relative to the amount you owe.
If you choose a level policy, then your premium and the payout are fixed throughout the term.
Now, while being over 70 doesn’t necessarily mean that life insurance will be prohibitively expensive, it will certainly be on the pricier end of the scale. When an insurer is assessing risk, older customers will naturally be seen as having a higher chance of making a claim. As well as your age, an insurer may consider:
This will depend on the insurer. Some - most likely those that specialise in over 70s cover - will only require you to answer a few questions. However, others may request that you do a medical.
Whatever the situation is, the most important thing is that you disclose any information that might be pertinent. Failure to do risks invalidating your policy if found out, without any of the premiums being paid back.
The best way to try and keep the cost down is to get it early on - the longer you wait, the higher the cost will be. There may also be certain parameters you can add to make it more affordable. For example, you might be able to get a cheaper rate on the condition that you exercise a certain amount.
As with anything, one of the best ways to get a good deal on your over 70s life insurance is to shop around. Fortunately, we have you covered, with our life insurance comparison tool able to show you all the best deals that are available right now.