Over 70s life insurance
Last updated: 02/02/2023 | Estimated Reading Time: 5 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. Over 70s life insurance is any life insurance product that is available to someone over the age of 70. There are different types available such as term life and guaranteed over 50s plans.
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 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.
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.
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.
With Whole of life cover, there are different types of cover. Namely, guaranteed over 50s plans or whole of life insurance. Both types of cover will last for the remainder of your life. However, guaranteed over 50s plans do not require medical information and all applicants who are UK residents aged 50 to 85 will be accepted. Whereas whole of life insurance will require medical information during application in order to underwrite the policy.
On the other side, fixed-term cover only protects you for a certain period for the length of the policy. That means if you die outside of the agreed period, your beneficiaries will not receive a payout.
This type of cover uses medical information and does not offer guaranteed acceptance.
There are generally three types of fixed-term life insurance:
This type of policy sees its payout and premiums incease over time where this is offered. This way, the amount your beneficiaries will receive keeps in step with inflation. It's important to note that not all providers and brokers offer this type of cover.
Decreasing policies have premiums that stay the same while the payout decreases. 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 also depend on the type of policy and amount of cover wanted.
As previously mentioned, over 70s life insurance is any life insurance product that is available to someone over the age of 70. There are different types available such as term life and guaranteed over 50s plans. Over 50s plans typically offer:
This will depend on the insurer and the type of cover as guaranteed over 50s plans don't require medicals. 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.