Over 60 Life Insurance
Article published on 4th June 2013
We speak to many people who are applying for Life Insurance over the age of 60. The surprising thing is that many individuals are concerned that they are too "old" for Life Insurance and are doing a quick search as a just in case. The maximum age for anyone to apply for Life Insurance is 83 years of age!
This article explores the types of policies that are most suited to individuals who are over the age of 60. Each policy is broken down into its advantages and limitations so that you can make a provisional decision as to what best suits your circumstances. We would always suggest that if you are over 60 and looking for Life Insurance that you speak with a qualified Financial Advisor who can ensure that you apply for the correct policy for you.
There are three main types of life insurance policies that individuals can apply for once they reach the age of 60:
- Whole of Life Insurance
- Term Life Insurance
- Guaranteed Over 50's Plan
Over 60s Whole of Life Insurance
We would typically recommend that you apply for Whole of Life Insurance once you reach the age of 60 if you are looking to protect your family from the expense of your funeral and related costs. A Whole of Life policy guarantees to pay out a lump sum benefit upon your death, as long as you continue to make your monthly payments.
Whole of Life Insurance provides the security that your family will definitely receive a payment upon your death. However, as this is the case, the policy tends to be more expensive than regular Life Insurance. Whole of Life Insurance is medically underwritten so if you are in ill health it is likely that your medical history and your age, will result in an increase to your premiums.
For example, a 60 year old person in good health wanting a Whole of Life policy for £10,000 may expect to pay a monthly premium of around £20*.
A 60 year old person in fair to poor health wanting a Whole of Life policy for £10,000 may expect to pay a monthly premium of up to £60*.
Over 60s Term Life Insurance
Term Life Insurance is another option for you to insure yourself to a maximum age of 90 years old. This means that should you outlive the policy end term, your 90th birthday, your family will not receive a lump sum payment upon your death. This may not seem as beneficial as the Whole of Life Insurance, but it can be a much more affordable option for many people. If affordability is a concern, by choosing this option you can be certain that you are insured until a certain age, which is better than having no insurance at all.
Life Insurance is also medically underwritten so any health conditions that you may have, or significant conditions in your family medical history, may result in an increase to your premium. A Level term Life Insurance policy is one of the cheaper options for insurance.
For example, a 60 year old person in good health wanting a Life Insurance policy for £10,000 over 30 years may expect to pay a monthly premium of around £12*.
A 60 year old person in fair to poor health wanting a Life Insurance policy for £10,000 over 30 years may expect to pay a monthly premium of up to £36*.
Guaranteed Over 50s Plan
A Guaranteed Over 50s Plan is a policy that we would recommend to a client of 60 years or over with serious medical conditions that would result in a rated premium for a regular Whole of Life or Life Insurance policy. Guaranteed Over 50's Plans ensure a lump sum benefit is payable upon an individual's death, in the same manner as a Whole of Life policy.
This option will typically be the most expensive option available to a client as the policy is not medically underwritten. This means that regardless of if you are in fantastic health, everyone pays the same premium. For some individuals a Guaranteed Over 50s Plan is the only option for insurance, but we would always recommend trying for one or both of the other policy types first to see if a standard premium could be secured.
For example, A 60 year old person wanting a Guaranteed Over 50s Plan for £10,000 may expect to pay a monthly premium of around £38*.
Looking for Help?
If you would like any help with setting up a Life Insurance policy or if you would like to talk about the options available to you then feel free to contact our qualified advisors on 0808 17 82 777.
*Approximate premiums have been calculated as of the 7th May 2013 using industry based comparisons. There is no guarantee that these premiums will remain at these levels when you come to apply for your Insurance.
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