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Life Insurance For Over 65 Quotes And Policies 2024

Elaine Brookes Steve Case

Author: Steve Case - Insurance Expert

Reviewed & Fact Checked By: Elaine Brookes

Updated: 31st December 2023

life insurance over 65

Do you have loved ones who may struggle to pay for your funeral if you pass away? Do you have an outstanding mortgage to repay? Is there a family member with who you would like to leave a gift?

Many people wonder what is the best age to get life insurance. There are different options available depending on how old you are. If you are 65 and over, consider that several life insurance options cater to your specific needs. In this article, we will cover what options are available, which may apply to you, and what the best policies should provide.

What is Over 65 Life Insurance?

Life insurance for over 65s is financial protection where designated beneficiaries will be left a lump sum should you die. The lump sum is funded by paying a regular monthly premium to the insurer, who pays out a lump sum payment amount.

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Why Do I Need Life Insurance Over 65?

For those over 65, life insurance can serve purposes that differ from younger policyholders, especially regarding IHT and funeral considerations.

Below are several reasons for taking out life insurance:

Outstanding debts

If you pass away, do you have any outstanding debts that need paying 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 any debts, giving you the peace of mind that your financial affairs are all in order.

Inheritance tax

If you have a substantial estate that you will pass on to your family in the UK, there will be an inheritance tax bill to pay. 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, it may be the case that you have taken on a short-term mortgage, equity release loan or another secured loan.

Any financial obligation should have coverage with a life insurance policy. A lump sum would be due upon your death and enable beneficiaries to pay off the debt and leave a property debt-free in the case of a mortgage.

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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 of putting you to rest.

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. An over 50 life insurance plan through small, regular premiums will provide a payout to a designated beneficiary upon your death.

Gift

A gift is a lump sum left to a loved one when you die. A gift can be used for any purpose, including buying a car, a deposit on a house, or paying for further education. It is often left for children or grandchildren and is a tax-free way of providing a financial reward upon your death.

Insurance Hero is an independent insurance broker. We specialise in providing insurance cover for British seniors, including the over 65 age group. Contact us today on 0203 150 1349, where our knowledgeable sales team will help you develop a robust plan tailored to your needs.

What Is the Best Life Insurance for Seniors?

The best life insurance for over 65 cover depends on your circumstances and directly correlates to reasons for taking out life insurance. If you take out insurance to pay off the remainder of a mortgage, the policy will be different from someone who simply wants to pay their funeral costs.

It would be best if you took care when you look for cover as an over 50s life insurance policy may not be the right insurance product for you.

Here we run through the three main life insurance options for over 65s. Depending on your particular circumstances, choices that may apply to your situation include term life insurance, over 50s life insurance plans, and a whole of life insurance.

Life Insurance Over 50 Cover

A life insurance cover known as an over 50s plan is a type of policy made famous by SunLife on National Television, one of the leading providers of this plan.

Over 50s life cover serves the 50 to 80 age group. It is a fixed-term insurance policy with premiums continuing up to a maximum age which can vary from 80 to 90 years old, depending on the provider.

Although the plan has a fixed term, most life insurance providers will keep it running with no additional premiums required once you have reached your maximum age. The plan pays a lump sum upon your death.

Guaranteed acceptance

No medical takes place with life insurance for over 50 policies, also known as guaranteed acceptance insurance. Prior medical conditions do not need to be declared. The payouts, as a result, are much smaller than other types of life insurance which require medical screening.

In return for guaranteed acceptance, providers rarely offer to pay out amounts exceeding £20,000 to £30,000.

The insurance can only be used for lower-value purposes and not for covering mortgage repayments or large inheritance tax bills.

Regular use for over 50s plans often revolves around paying for funerals, repaying small debts, gifts to loved ones, or 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 pays towards your funeral costs and the lump sum payout amount 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. If you are aged 50 or over, that does not mean that it is not the right type of policy for you. Term insurance only provides cover for a set period, which means the life policy will not pay out once it expires, and you then die.

Term insurance often matches up with a fixed-term loan or mortgage that is maturing. It means if you die, the debt repays.

Other uses include the coverage of an anticipated Inheritance Tax bill on your estate when you die or to cover the costs of childcare, private education, or further education for your children.

Term insurance requires strict medical vetting, and pre-existing medical conditions will also be considered before you receive a policy quote. As term insurance has a fixed maturity date, you should find that fixed-term policies are cheaper than whole-of-life options.

Whole of Life Cover

A full medical and a declaration of any pre-existing medical conditions are a requirement for a whole of life insurance. Whole life insurance over 65 is expensive as it can start up at an early age, and as long as premiums are up to date, it will pay out whenever you die with no maturity date.

Term and whole of life premiums become increasingly expensive as you get older due to the higher risk of something happening to you compared to a young, healthy person.

For those over 65, the cost may be very high, but rather than get disheartened, it is essential to keep shopping around for competitive life insurance quotes. Insurance Hero can offer whole life insurance quotes for seniors from a bespoke panel of insurers.

Differing Levels of Cover

Life Insurance can be taken out with level, increasing, or decreasing cover:

Level cover: means the level of premiums stays the same for the duration of the fixed-term policy.

Increasing cover: see premiums rise in tandem with the rate of inflation often measured using the Retail Price Index (RPI)

Decreasing premium cover: sees the sum assured decrease over the length of the fixed term policy.

How Should I Compare The Best Life Policies?

You must compare life insurance like for like when considering life insurance for the over 65s. For example, if you are comparing term insurance, it must be judged with similar style policies and not an entirely different type of product like an over 50s plan.

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

Key Considerations When Comparing the Best Policy

There are crucial elements that should be part of a robust policy when considering life insurance for over 65 plans. 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 that pays out to designated beneficiaries should you die.

The amount of coverage relates directly to your circumstances. For those looking to pay for funeral costs and are looking at an over 50s plan, with the average cost of a funeral in the UK being £4,000, your cover requirements are low.

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?

What is the reason for taking out life insurance for seniors over 65? The answer to this answers the question of how long a policy should last.

If you are an older parent, a plan might be to ensure your children can complete further education or that a mortgage or equity release loan can be repaid. When these life events finish, then so should your life cover.

What is the cost of cover?

The cost of cover is the monthly premium paid to the insurer, who will provide a sum assured should you die. When comparing the cost of cover an over 50s plan with guaranteed acceptance is not the same as term insurance with strict medical vetting.

What is the claims process?

Consideration should be made to how long a payout takes after a claim. The information is available in a policy’s definitions. It can also be useful to research the percentage of payout levels of an insurer if further comfort is required surrounding the claims process.

Maximum entry age limits

The maximum age limit of entry onto a plan is another consideration worth keeping an eye on as not all insurers offer a uniform age of acceptance on a policy, and there may be 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. For those over the age of 65, obtaining life insurance can sometimes be a challenge, especially if they have pre-existing medical conditions or are concerned about undergoing a medical examination.

Recognising this need, many insurance providers now offer policies that do not require a medical exam for individuals over 65.

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

Benefits:

  1. Simplified Application Process: Applicants can often complete the process online or over the phone in minutes without needing a medical exam.
  2. Quick Approval: Since there’s no waiting for medical test results, policies can be approved and issued more rapidly.
  3. 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:

  1. Higher Premiums: Due to the increased risk taken on by the insurer without a full understanding of the applicant’s health, premiums for no medical exam policies can be higher than traditional policies.
  2. Coverage Limits: There might be a cap on the amount of coverage one can obtain without a medical exam.
  3. Waiting Periods: Some policies may have a waiting period before full benefits are payable.

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

Life insurance over 65 final thoughts

The need to take out life insurance relates directly to your circumstances. A guaranteed acceptance plan can provide peace of mind that funeral costs and small debts will be covered when you die.

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.

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 about his financial decisions. With grown-up children and a loving wife, Mary, also in her sixties, he wanted to ensure they would be well taken care of, even in his absence.

After thorough research and help from the Insurance Hero team, John invested in an over 65 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 seniors life insurance policy ensured that Mary wouldn’t have to worry about sudden financial burdens.
  • Financial Security for Mary: In the event of John’s passing, the insurance payout would provide Mary with a substantial amount to help maintain her current lifestyle without any financial strain.
  • Support for Grown-Up Children: While John’s children were independent, the insurance would serve as an additional safety net, helping them in times of unexpected financial needs or emergencies.
  • Coverage Tailored to Seniors: The life cover over 65 was specifically designed considering seniors like John’s 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.

John’s decision to opt for a seniors life insurance policy ensured his loved ones would be well cared for. The over 65 life insurance was a testament to his love and foresight for his family’s well-being.

Life Insurance For Over 65 FAQs

Can I put my policy into trust?

It is best to speak to the insurer directly as a trust is a more complicated structure that all life insurers do not offer, and availability will also depend on the type of plan.

Will premiums go up every year?

Policies will typically have different options regarding premium payments. Level, increasing, or decreasing premiums are all options that do exist as part of life insurance.

Can I get a joint policy?

The answer to this lies directly with the insurer. Certain types of plans allow a policy in joint names, and some, such as over 50s life cover, do not permit a joint life policy.

How much does life insurance cost?

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

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 covering significant amounts require medical approval for acceptance onto a plan.

Is it worth getting life insurance at 65?

Life insurance at 65 can be worth providing financial security for loved ones and covering end-of-life expenses. However, premiums may be higher, so weighing the benefits against the costs is essential.

Is it worth taking out life insurance at 66?

Taking out life insurance at 66 can provide financial protection for beneficiaries and cover end-of-life expenses. Evaluating the policy’s benefits concerning its premiums at this age is essential.

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 more costly due to your age.

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