Life insurance for over 60s explained
Key takeaways
- Term life insurance covers you for a fixed period and only pays out if you die within that term, making it cheaper. Whole-of-life insurance guarantees a payout whenever you die but comes with higher premiums.
- Guaranteed over-50s plans offer easier access - These policies don't require a medical exam and acceptance is usually guaranteed, though cover amounts are lower and a waiting period typically applies.
- Several factors affect your premium - Age, health, smoking status, cover amount, and policy length all influence cost.
- Your cover needs likely change in your 60s - With children more financially independent and mortgages closer to being paid off, many people need less cover than in earlier life. Common priorities shift to funeral costs, inheritance planning, and supporting a surviving partner.
- Buy sooner rather than later - Premiums rise with age and some policies have maximum age limits (often 75–80). Locking in cover earlier in your 60s secures better rates than waiting until your 70s.
How does life insurance for over-60s work?
Life insurance is a policy that pays out a lump sum when you die, for which you pay monthly premiums.
The two main types of cover are:
- Term life insurance (usually available as level term cover or decreasing term cover)
- Whole-of-life insurance (also known as life assurance)
The cost of cover is based on the level of risk the insurer calculates you present. So this includes factors like:
- Your age
- Your health
- Whether you smoke
- The amount of cover you want
It’s no secret that premiums tend to rise with age. But people in their 60s (and beyond) can still get good-quality, affordable cover. It’s all a matter of doing your homework and shopping around.
On top of this, increasing life expectancy means many people may live for decades after turning 65. Current UK estimates suggest a 65-year-old man may live around another 20 years on average, while a 65-year-old woman may live around another 22 years.
What are the different types of life insurance policies available for over 60s?
Term life insurance
Term life insurance covers you for a fixed period, for example, 10 or 20 years. The policy only pays out if you die during the chosen term.
Because the insurer might not need to pay out, term life insurance is usually cheaper than whole-of-life cover.
There are two main types of term life insurance:
Level term life insurance
With level term cover, the payout stays the same throughout the policy term.
This could be useful if you want to leave a fixed amount to loved ones or cover an interest-only mortgage.
Decreasing term life insurance
With decreasing term cover, the payout reduces over time.
This type of policy is often used to protect a repayment mortgage, where the outstanding balance gradually falls. Although it’s also suitable for any type of debt you pay off over time.
Whole-of-life insurance
Whole of life insurance – sometimes called life assurance – guarantees a payout whenever you die, provided you keep up with the premiums.
This type of policy is often used for:
- Funeral costs
- Leaving money to family
- Inheritance planning
Because the payout is guaranteed, premiums are usually higher. Of course, it also depends on the cover amount, because people often buy this type of policy to tide their loved ones over for a comparatively short period.
Guaranteed over-50s life insurance
Guaranteed over-50s life insurance plans are popular with older applicants because:
- Acceptance is usually guaranteed
- You often don’t need to have a medical
A few things to bear in mind though:
- The maximum cover amount is often lower
- Policies tend to include a waiting period before the full payout applies for death from natural causes
How can I get cheap and affordable life insurance over 60?
Here are a few practical pointers for finding cheaper life insurance:
Compare life insurance policies
Our number-1 tip: To find affordable life insurance, always compare quotes from multiple insurers.
Prices can vary significantly depending on factors like your age, health, policy type and level of cover. But by comparing a range of policies side-by-side, you can easily compare prices and also cover levels, policy features and so on. This way you can pick a policy which best suits your circumstances and budget.
Maintain a healthy lifestyle
Insurers generally offer lower premiums to people based on certain health factors. You’re likely to get a cheaper policy if you don’t smoke and generally lead a healthier lifestyle.
Choose a shorter-term
A shorter policy term usually means lower monthly premiums. So, a 10-year policy is likely to be cheaper than a 20-year policy. Make sure this adequately covers your needs, though.
Consider decreasing term cover
Because the payout falls over time, decreasing term insurance is often more affordable than level term cover. You might need a lower payout over time if, say, your children are earning better and need less of a payout. Again, make sure this is the appropriate choice for your circumstances.
What amount of life cover do I need in my 60s?
The right amount of cover depends on your financial situation and what you want the policy to achieve.
Common reasons for taking out life insurance in your 60s include:
- Covering funeral costs (find out more by reading our guide to funeral insurance)
- Paying off remaining mortgage debt
- Leaving money to children or grandchildren
- Helping loved ones manage financially
As mentioned, if your children are financially independent and major debts have been repaid, you might need less cover than you did when younger.
Read our guide to how much life insurance you need to find out all the factors to take into consideration. You could also use a life insurance calculator to help estimate how much cover might be appropriate for your circumstances.
What about life insurance for older ages, like over 65 or over 70?
Life insurance generally becomes more expensive and more limited as you get older.
Plus, some term life insurance policies have maximum age limits – say, 75 or 80.
For older applicants or people with health conditions, guaranteed over-50s plans can sometimes provide a simpler alternative.
Although referred to as ‘over 50s’, these policies are often available up to ages like 80, or even 85.
Taking out cover earlier in your 60s can also help lock in lower premiums compared to waiting until your 70s. With life insurance generally, the golden rule is the earlier you buy cover, the better the deal is likely to be. So why wait?
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