Life Insurance Over 65 Quotes

Do you have loved ones who may struggle to pay for your funeral if you pass away?

Do you have an outstanding mortgage? Is there a family member you would like to leave a gift to? Life insurance for over 65s may be right for you.

One of the most common questions is: what is the best age to get life insurance?

While the general answer is “as early as you can”, different options are available depending on your age. Fortunately, you’re never too old to get life insurance cover.

If you are 65 and over, consider that several life insurance options cater to your needs. Here, we will cover what options may apply to you and what the best policies should provide.

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What is Over 65 Life Insurance?

Life insurance for over 65s is one of several life insurance policies designed specifically for seniors.

These policies exist because traditional life insurance typically has an upper age limit due to the increasing risk of death as you get older.

Rather than leaving you with no options in your golden years, insurance providers have created senior life insurance policies to suit your changing needs as you age.

A traditional life insurance policy and an over-65s cover differ in several important ways, which we’ll discuss later in this post.

The basics, though, are the same: you buy a policy, pay premiums, and when you pass, your beneficiary receives a payment based on your death benefits.

Why Do I Need Life Insurance At This Age?

For those over 65, life insurance can serve different purposes than for younger policyholders, especially for inheritance tax and funeral arrangements. Here are several reasons to take out life insurance.

Outstanding debts

If you pass away, do you have any outstanding debts to pay off? Liabilities may include credit card bills, personal loans, hire purchase agreements, car loans, or bank overdrafts.

A life insurance policy can provide a lump sum to beneficiaries to pay off debts, giving you peace of mind that your financial affairs are in order.

Inheritance tax

If you have a substantial estate to pass on to your family in the UK, you may owe inheritance tax.

A life insurance policy can be individually tailored to pay off an Inheritance Tax bill, so your dependents are left with an unencumbered estate.

Mortgage repayment

If you are 65, you may have taken on a short-term mortgage, equity release loan, or another secured loan.

These financial obligations can significantly burden your spouse or descendants after you pass away. Still, your life insurance payment can cover those debts and leave the remainder of your inheritance untouched.

Funeral expenses

The average funeral cost in the UK is over £4,000, and many over 65s have not made provisions to pay for their funeral costs, with dependents having to shoulder the cost.

A simple guaranteed acceptance policy can provide a small lump sum when you die, allowing you the peace of mind that your death will not financially burden your loved ones.

Charitable donation

Leaving a lump sum to a favourite charity or good cause may be something you want to provide for as you get older.

You may wish to support that charity, but avoid the drama of taking from an inheritance to do so, or you may simply not have the assets to leave to charity.

A life insurance policy can name a charity as a beneficiary, so when you pass away, the proceeds go directly to support the charity’s ongoing operations.

Tax-free gift

A gift is a lump sum left to a loved one when you die.

You can use a gift for any purpose, including buying a car, putting down a house deposit, or paying for further education.

People often leave it to children or grandchildren as a tax-free way to provide a financial reward after death.

What Is the Best Life Insurance for Seniors?

The best life insurance cover for those over 65 depends on your circumstances and aligns with your reasons for taking out life insurance.

If you take out insurance to pay off the remainder of a mortgage, the policy will differ from one intended to pay funeral costs.

Be careful when choosing cover, as an over-50s life insurance policy may not be the right product for you.

Here we run through the three main life insurance options for over 65s.

Depending on your circumstances, options include term life insurance, over-50s life insurance, and whole life insurance.

Life Insurance Over 50 Cover

Originally made famous on national television by Sun Life, one of the leading providers of this kind of cover is the Over 50s Life Insurance Policy.

Over-50s life cover from Insurance Hero serves the 50— 80-year-old age group. It is a fixed-term policy, with premiums continuing until a maximum age of 80 to 90, depending on the provider.

Although the plan has a fixed term, most life insurance providers will continue it with no additional premiums required once you reach your maximum age. The plan pays a lump sum when you die.

Some of the benefits of over 50s life insurance coverage include:

Guaranteed acceptance

Over-50 life insurance policies do not require a medical evaluation, which is why they are also known as guaranteed acceptance insurance. Prior medical conditions do not need to be declared. 

The drawback is that payouts are much smaller than those of other life insurance policies that require medical screening.

In return for guaranteed acceptance, providers rarely pay out more than £20,000 to £30,000.

As a result, you can use the insurance only for lower-value purposes, not to cover mortgage repayments or large inheritance tax bills.

Regular uses for over-50s plans often include paying for funerals, repaying small debts, giving gifts to loved ones, or making charitable donations.

Funeral cover

Many providers offer supplementary funeral plan cover as part of an over-50s policy. In return for using a specific funeral director, a small lump sum is paid towards your funeral costs, and the lump sum is paid to designated beneficiaries.

Fixed Term Life Insurance for Over 65

Term life insurance is the most popular type of life insurance for younger age groups. However, many insurance providers set an age limit for term life cover and will not issue policies to people over a certain age.

Fortunately, those age coverage limits are usually 70, 80, or even 90, so if you’re between 50 and 70, it may still be a good option.

Term insurance covers only a set period, meaning the policy will not pay out once it expires. If you outlive your policy, you either have to extend it – often for a higher premium – or let it lapse and have no cover.

There are generally three kinds of term life cover:

First, you have increasing term life insurance. The death benefit for this kind of cover grows over time to adjust for rising living costs and inflation. As a result, premiums generally increase over time as well.

Second, you have flat-term life insurance. This cover is fixed for the entire term; your premiums and your benefits remain the same from year one to the end of the term.

Third, you have decreasing term life insurance. This type of cover is generally matched to a debt, such as a mortgage, with the benefit equalling the amount remaining on the debt.

As you pay off the debt, the cover benefit and the premiums you pay decrease.

Term insurance requires strict medical vetting, and pre-existing medical conditions will also be considered before you receive a policy quote.

Because term insurance has a fixed maturity date, fixed-term policies are usually cheaper than whole-of-life options.

Whole of Life Cover

Whole of life insurance coverage does not expire like term life coverage. Instead, it lasts as long as you pay premiums and pays out when you pass, whether you live to 70, 90, or 110.

Whole-of-life policies are a hybrid of investment accounts and insurance products, so if you cancel, you often receive payment of some equity accrued over the years, though not as much as if you maintained cover until your passing.

A full medical and a declaration of any pre-existing medical conditions are required for whole-of-life insurance.

Both term and whole-of-life premiums become increasingly expensive as you get older because you’re at higher risk than a young, healthy person.

Additionally, because of the added investment component and the guaranteed payout when you pass, whole-of-life cover is generally significantly more expensive than term-life cover.

The cost may be very high for those over 65, but instead of getting disheartened, it is essential to keep shopping around for competitive life insurance quotes.

How Should You Compare the Best Life Policies?

Compare life insurance like-for-like when shopping for policies for over-65s.

For example, if you are comparing term insurance, judge it against similar policies, not an entirely different product, such as an over-50s plan.

The best life insurance for over-65 policies is not necessarily the cheapest. The best policies align closely with your circumstances.

Key Considerations When Comparing the Best Policy

When considering life insurance for people over 65, a robust policy should include key elements.

Here are important areas you should be aware of when comparing the best life policies:

How much cover do you need?

Cover refers to the sum assured or the lump sum paid to designated beneficiaries should you die.

The amount of cover depends on your circumstances. If you want to cover funeral costs and are considering an over-50s plan, the average cost of a funeral in the UK is £4,000+, so your cover requirements are low.

On the other hand, for an over-65-year-old looking to cover a repayment mortgage, the cover requirements will be substantially more and require medical acceptance as part of a fixed-term policy.

How long do you want your cover to last?

How long you want your cover to last depends on why you’re seeking life insurance over 65 in the first place.

For example, if you are an older parent, you might want to ensure your children can complete further education or that a mortgage or equity release loan can be repaid. When these life events end, your life cover should too.

Alternatively, if you want to secure an inheritance for your children and help build generational wealth, cover that lasts indefinitely may be the better option.

What is the cost of cover?

The cost of cover is the monthly premium you pay to the insurer, who will pay out a sum assured if you die.

When comparing coverage costs, an over-50s plan with guaranteed acceptance is not the same as term insurance with strict medical vetting.

The cheapest premium will not always give you what you want. Instead, consider other factors, such as term, payout, and medical riders, and compare plans with those attributes to find the most affordable cover for your needs.

What is the claims process?

Consideration should be given to how long it takes to receive a payout after a claim. The information is available in a policy’s definitions.

Researching an insurer’s payout percentage can also help if you want more confidence in the claims process.

Are there maximum entry age limits?

The maximum entry age limit for a plan is another consideration to keep in mind. Not all insurers offer a uniform age of acceptance, and some may have an age cut-off.

Life Insurance Over 65 Without a Medical Exam

As people age, the need for life insurance may evolve, but it doesn’t diminish.

Obtaining life insurance can be challenging for those over 65, especially if they have pre-existing medical conditions or are concerned about undergoing a medical examination.

Recognising this need, many of the UK’s best insurance providers now offer policies that don’t require a medical exam for people over 65.

These “no medical exam” policies provide coverage without extensive health checks, making the application process quicker and less invasive.

Benefits:

• Simplified Application Process: Applicants can often complete the process online or by phone in minutes, without a medical exam.
• Quick Approval: Since medical test results are not required, policies can be approved and issued more rapidly.
• Inclusivity: These policies are especially beneficial for those who might be denied coverage based on a traditional medical exam, ensuring that more seniors have access to life insurance.

Considerations:

• Higher Premiums: Because the insurer takes on increased risk without a full understanding of the applicant’s health, premiums for no-medical-exam policies can be higher than traditional policies.
• Coverage Limits: Coverage limits without a medical exam may be lower.
• Waiting Periods: Some policies may have a waiting period before full benefits are payable.

While life insurance for seniors over 65 without a medical exam offers a convenient and inclusive option, it is essential to weigh the benefits against the potential costs.

Case Study: John’s Decision to Secure His Family’s Future with Seniors Life Insurance

John, a 68-year-old living in Kent, had always been prudent with his finances. With grown children and a loving wife, Mary, also in her sixties, he wanted to ensure they would be well cared for, even if he were no longer there.

After thorough research and help from the Insurance Hero team, John invested in a life insurance policy.

Benefits for John and His Loved Ones:

• Peace of Mind: Knowing that his family would be financially secure gave him peace of mind. The senior’s life insurance policy ensured that Mary wouldn’t have to worry about sudden financial burdens.
• Financial Security for Mary: If John passed away, the insurance payout would give Mary a substantial amount to help maintain her current lifestyle without financial strain.
• Support for Grown-Up Children: While John’s children were independent, the insurance would provide an additional safety net, helping them with unexpected financial needs or emergencies.
• Coverage Tailored to Seniors: The life cover over 65 was designed with seniors like John in mind, considering their needs and health conditions. This meant he didn’t have to undergo rigorous health checks, and the premiums were affordable.
• Legacy for Grandchildren: John and Mary cherished their grandchildren. The insurance policy ensured they could leave a legacy for their future education and well-being.

FAQs

Now, let’s answer some of the most frequently asked questions we receive regarding over-65s life insurance cover.

Can I put my policy into trust?

Placing your life insurance in a trust is a complex structure used in financial planning and estate management.

Not all insurance providers offer this option, so you’ll need to discuss it with the providers you’re considering.

Will premiums go up every year?

This depends entirely on the kind of policy you purchase. Policies typically offer different premium payment options. Life insurance offers level, increasing, or decreasing premiums.

Can I get a joint policy?

Some, but not all, life insurance policies allow joint names. Most over-50s life insurance policies don’t allow joint policies, but some do; ask your insurance provider.

It’s also worth looking into the pros and cons of a joint policy in the first place. It’s not always the best option. For more information, please read our guide on single versus joint life insurance cover.

How much does life insurance cost?

Life insurance for over 65s can cost as little as £7 a month for a guaranteed acceptance policy that pays out a small sum to cover funeral costs when you die.

The longer the term (or the longer the whole-of-life cover), the larger the payout, and the broader the acceptance, the more expensive it will be.

Do I need to undertake a medical?

Guaranteed acceptance life insurance, also known as an over-50s plan, does not consider medical history when considering policy applications.

Whole-life and fixed-term life insurance policies covering significant amounts require medical approval.

Is it worth getting life insurance at 65?

Life insurance at 65 can provide financial security for loved ones and cover end-of-life expenses. However, premiums may be higher, so it’s essential to weigh the benefits against the costs.

Is 67 too old for life insurance?

No, 67 is not too old for life insurance. Many providers offer policies tailored for seniors, though premiums may be higher because of your age.

The need for life insurance depends directly on your circumstances.

A guaranteed acceptance plan can provide peace of mind, knowing funeral costs and small debts will be covered after you pass away.

Other options, including term insurance that requires medical acceptance for more substantial coverage, also have their uses for over 65s.

Give your family the financial security they deserve by getting life insurance. It’s one of the best things you can do for them, and it doesn’t have to be as expensive as you think.

Get a no-obligation free quote today and see how affordable peace of mind can be.