As you enter a new era of your life, you might start to re-evaluate your priorities and wonder how you can plan for the future.
Life insurance can help you to financially protect your loved ones should the worst happen, but what options do you have in your 60s?
What is over 60s life insurance?
'Over 60s life insurance' refers to life insurance that's bought by someone over 60. It's not a specific policy type.
Life insurance is financial protection that pays out a lump sum to your loved ones if you die during the policy term.
The pay out can help your family cover essential living costs and other expenses, such as paying for your funeral.
It's still possible to buy life insurance in your senior years and there could still be a range of policy types available to you.
Is it worth getting life insurance in your 60s?
Life insurance can be beneficial regardless of whether you're in your 30s, 40s, 50s or 60s.
In your 60s, you may have less people financially reliant on you as your children start to grow up, fly the nest and start families of their own. But this doesn't mean life insurance becomes less important.
Life insurance might have once allowed you to keep a roof over your family's head and food on the table if the worst happened. Now, it can help you protect them from expensive funeral costs.
It can help to give you peace of mind that the ones you leave behind won't struggle financially by helping with:
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Covering funeral costs - the cost of a funeral is now at a record high, costing £4,285 for a basic funeral (according to the SunLife cost of dying report). This amount of money could be hard for your loved ones to find at short notice.
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Gifting your children an inheritance - with the cost of living crisis and rising house prices, you may want to leave your children a cash gift to help them onto the property ladder or to make daily living easier.
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Helping your partner through retirement - state pension is currently £230.25 per week (although this amount can vary depending on your national insurance contributions). If you were to pass away, could your partner retire comfortably on this amount?
What's the best life insurance for over 60s?
The best over 60s life insurance will depend on various factors, such as what you want to protect, how much cover you need, and what your budget is.
Depending on your personal circumstances, there could still be a wide range of life insurance policies available to you, including:
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Level term life insurance - covers you for an agreed amount of time (known as the policy term) and pays out if you die during this time. Your cover amount remains the same throughout the policy term, so it's most commonly used to protect an interest-only mortgage or other large debts.
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Decreasing term life insurance - covers you for an agreed amount of time and pays out if you die during thise time. Your payout amount will decrease throughout the policy term, making it ideal for protecting a repayment mortgage.
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Whole of life insurance - whole of life insurance covers you for the rest of your life and guarantees a pay out when you die. It can also help to provide your loved ones with an inheritance. Or, if the policy is written in trust, the funds could help cover any inheritance tax bills that are charged on your estate.
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Over 50s life insurance - offers guaranteed acceptance to UK residents aged 50-85, without asking for any medical information or exams. Cover lasts for life and a payout is guaranteed when you die (after the initial 12-24 'waiting period' has passed). A pay out from over 50s life insurance is typically smaller than other forms of cover, so it's most commonly used to cover funeral costs.
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Joint life insurance - you can buy level term, decreasing term and whole of life insurance on a joint basis. This means that two lives are covered under one policy. A single payout is made when one partner dies.
Your personal circumstances can help you determine what policy might be best for you.
For example, an over 50s plan could work if you've got a pre-existing medical condition and you've struggled to buy standard life insurance.
Alternatively, if you're in good overall health and you want to buy life insurance as part of your inheritance tax planning, whole of life insurance could be more suitable.
How much life insurance do you need in your 60s?
How much life insurance you need depends on what you need to protect. For example:
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Funeral costs - funerals have been increasing in cost over the last few years. Today, a funeral would set you back £4,285, but this cost is predicted to continue rising.
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Your mortgage - if you want life insurance to protect your mortgage, your cover amount should at least mirror your remaining mortgage balance. But, you could also choose to include an additional sum of money to help with home maintenance, as well as bills and utilities.
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Daily living costs - it's estimated that a one-person household would need £42,900 per year to live comfortably in retirement. You could factor this into your cover amount to provide for your partner when you're no longer around to contribute.
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An inheritance - the average inheritance left behind is £11,000. This cash gift could help your loved ones to live a more financially comfortable life. Or it could help towards a large purchase (such as a new car or home renovations).
Why not use our life insurance calculator to work out how much life insurance you need?
How much does over 60s life insurance cost?
The cost of life insurance for over 60s varies depending on personal circumstances and the policy you buy.
If you opt for term-based or whole of life insurance, the cost of your policy depends on:
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Your age
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Your medical history (including family medical history)
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Your occupation
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Your lifestyle choices (drinking habits and hobbies)
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Cover amount
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Length of cover
Whereas, when buying an over 50s plan, the price you pay is based on your age and cover amount. Some insurers may also take your smoking status into consideration.
How long does over 60s life insurance last?
How long your policy will last depends on the type of policy you buy.
If you take out term life insurance, it will last for a certain amount of time that's agreed between you and your insurer during the application process.
Insurers will need your policy to end by a certain age (for example, 80 or 90), so it could be possible to outlive your policy.
If you take out whole of life insurance or an over 50s plan, cover will last for the rest of your life.
Can I get critical illness cover over 60?
You might be able to get critical illness cover over 60 depending on your age.
Critical illness cover can be added to term life insurance for an additional cost in your monthly life insurance premium.
It means you can make an early claim on your policy if you're diagnosed with specific serious illnesses (such as heart attack, stroke or cancer).
With many insurers, the maximum age to buy critical illness cover ranges from 64-69. If you're in your early 60s you may find it easier to get a policy than those in their mid to late 60s.
What to consider when buying life insurance in your 60s
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Think about what you need to cover - sitting down and working out what it is that you want to protect can give you a better idea of the type of policy and how much cover you might need.
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Don't delay buying a policy - not only can life insurance cost more the older you get, but it could also mean you're not eligible to buy certain forms of cover (for example, critical illness cover).
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Do you have any health conditions - if you're living with ill health, there could be complications with trying to buy traditional policy types. Or it could become expensive. Consider an over 50s plan where you won't have to give any medical information.
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Compare multiple quotes - the price you pay can vary significantly between insurers, so, to make sure you're getting a good deal, it's important to compare as many quotes as possible.
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Don't be afraid to ask for help - if you need help comparing quotes or you just need more information on what options are available to you, you can always reach out to an expert (like Confused.com).