As we build families and get older, it becomes more and more important for us to keep our loved ones as safe and supported as best we can. For many people over 60, securing a life insurance policy is an important step in making sure your loved ones will continue to be taken care of if you weren’t there to provide for them.
It’s still possible to get life insurance if you’re 60 or over, with an option being a specialist over 50s life insurance policy. We’ve put together a guide to help you understand what this is and how you and your family can benefit from having one.
What is Over 60s Life Insurance?
Over 60s are eligible for an over 50s life insurance plan, which requires policy holders to be at least 50 years old to be accepted.
There are no medical assessments or checks when it comes to over 50s life insurance, and your loved ones will receive a guaranteed cash lump sum payout when you pass away.
The price of your monthly premium will depend on the level of cover you would like, and whether you choose to opt into any extras offered by the insurer – such as add-ons providing additional protection, like terminal illness cover. Additionally, with some insurers, you’ll only have to make payments for a set number of years, sometimes until you turn 80 or 90.
Why should Over 60s get Life Insurance?
Choosing to take out this type of life insurance policy comes with several benefits, the main one being that your loved ones will have some money to pay towards things like your funeral costs and settle any outstanding debts you may leave behind.
At times of grief, finances are the last thing any of us want to worry about. Your loved ones will already be coping with a difficult time, and it can take a lot of pressure off to know that they will receive a lump sum to help with your funeral arrangements.
Alternatively, the lump sum could be left to a friend or family member to use as a nest egg if you don’t have to worry about unexpected bills or funeral costs.
It’s also worth noting that over 50s life insurance guarantees acceptance, even if you have a pre-existing health condition. As long as you’re between the ages of 50 and 80 when you apply, you’ll be able to get cover without any questions about your health.
How Much Does Life Insurance Cost?
How much life insurance costs depends on the age of the person, the level of cover they opt for, and the insurer that provides it.
For example, with our Over 50s life insurance, a 65 year old who doesn’t smoke could pay as little as £23 a month. If they continued these payments until they reached 80, their final payout would be £5,316.
What types of life insurance are available for over 60s?
Your options for life insurance don’t disappear when you reach 60 – you still have some options to explore and decide what works best for you. Here are two of the most popular options available.
Over 50s Life Insurance
Over 50s life insurance plans are a type of ‘whole of life’ insurance, which guarantees to pay a lump sum payment to your loved ones after you pass away. This is a popular option for over 60s.
While some types of whole of life insurance require your medical history, when you apply for a Shepherds Friendly Over 50s Life Insurance plan you won’t be asked any medical questions, and you’re guaranteed to be accepted.
Term Life Insurance
Term life insurance is a type of life insurance that covers you for a set period of time, and guarantees a payment if you pass away during this time period.
Term life insurance tends to cost more as you get older and it may only offer cover for a short period of time. If you outlive the term of the policy, you won’t get any pay out at all and you won’t be refunded any of the premiums you’ve paid over the years. However, if you do pass away during the specified time period, the payout can be higher.
With this type of insurance you’re likely to be asked for your full medical background too, and if you have any existing injuries or conditions you could end up paying more.
What type of life insurance is best for over 60s?
There’s no single answer to this question as it depends on the individual needs of the policy holder. However, generally speaking, over 50s life insurance is a popular choice for people in this age group who are looking to help cover the costs of their funeral and any outstanding debts. If unsure, an individual should seek advice from an appropriately qualified financial adviser.
Our Over 50s Life Insurance offers guaranteed approval, without the need for a medical assessment. This can give you the reassurance and peace of mind that you need, regardless of your lifestyle or health status.
The type of insurance that is most suitable will depend on an individual’s own circumstances. If unsure, an individual should seek advice from an appropriately qualified financial adviser.
Be sure to read through our plan summary and terms and conditions. Remember that when you invest, your capital is at risk.