Over 70s life insurance: can you and should you get it?
What are the options for life insurance when you’re in your 70s? We look at what it covers, how much the premiums cost and how to qualify.
You can still buy life insurance when you’re over 70.
Life insurance options for over-70s include over-50s plans, whole of life and term insurance policies.
Premiums and coverage differ depending on your health, age, requirements, and the policy type.
Policies are often taken out to ensure the future financial well-being of dependents.
An expert insurance broker can help you choose the best over-70s life insurance policy.
Can I get life insurance if I am over 70?
It is still possible to get life insurance if you are over 70 in the UK.
Many options exist for life insurance for those over the age of 70, and it’s well worth investigating them to ensure you select the right option for your needs.
Should I get life insurance if I’m over 70?
When you’re over 70 you might not need a life insurance policy to pay off a mortgage, but you may still need one for other reasons, including:
To cover any outstanding bills when you die.
To cover funeral expenses.
To ensure support for dependents.
To pay inheritance tax.
However, not everyone will still need, or benefit from it.
Life insurance may be unsuitable for you if:
You are financially independent, have paid off your mortgage and other debts, with enough left to cover your day-to-day expenses.
You have severe or chronic health conditions, which may either render you ineligible for life cover or cause your premiums to be higher than is affordable for you.
You have no dependents, so you don’t need to worry about their financial security after you die.
Below are the pros and cons of life insurance for over 70s.
What are the pros of over 70s life insurance?
Financial aid for your loved ones after you die.
Coverage of end-of-life expenses including funerals.
Pay an inheritance tax bill
What are the cons of over 70s life insurance?
Premiums rise steeply as you age.
Common health issues for the elderly may make you ineligible or result in very high premiums.
It may be unnecessary if you are in a strong financial position or don’t have dependents.
What are the best over 70 life insurance options?
There are several options when it comes to life insurance for over 70s:
Over 50s life insurance
Life insurance plans for over 50s are guaranteed to accept your application if you are generally between 50 and 85, although this can vary by provider.
It includes a guaranteed cash payout when you die, fixed premiums, and does not require a medical examination.
Premiums continue until your death, or when you reach a certain age (usually 90), and a waiting period applies, which tends to be between 12 and 24 months.
But note that over 50s policies will not pay out such huge sums as standard term policies that you may have had when you were younger. It may just be a contribution towards funeral costs or a small inheritance for loved ones (up to a few thousand pounds, depending on your premiums).
As a guide, a non-smoking 75 year old could get a payout of £2,800 for a premium of £30 a month.
Depending on how long you live, there may also be the risk that you pay more in premiums than your loved ones receive when the policy pays out.
Whole of life insurance for over-70s
Whole life insurance provides lifelong cover, with a lump sum payout to the beneficiary of the policyholder when they die.
This allows for a cash value to build over the years, but it is more expensive and complicated.
Fixed premiums are typically higher than over-50s insurance, but so is the payout. This type of insurance is more suited for applicants in good health.
Premiums continue until you pass away.
Whole of life insurance policies are often used to ensure there is money available to pay an inheritance tax bill when you die.
The cost of whole of life insurance will vary significantly based on your age, health, weight, lifestyle, where you live and the amount of cover you need.
Term life insurance for over-70s
Term life insurance covers you for a specific amount of time, with an expiry date (between one and 20 years) and does not include a cash value, but is cheaper and simpler.
Not all insurers will offer terms as long as 20 years to people over 70.
Typically, older applicants might only be eligible for shorter terms, like five or 10 years, depending on their age at application.
Premiums are fixed, and you can choose between level term and decreasing term life assurance.
Sometimes over-70s will use a term policy as part of their inheritance tax planning.
For example, larger gifts may not become tax-free until seven years have passed.
A term policy can be taken out to cover the inheritance tax bill, in case the donor dies during that time. You might hear this referred to as a ‘gift inter vivos’ policy.
Some major life insurance providers in the UK include:
SunLife
Aegon
Scottish Widows
Vitality
LV Insurance
The Post Office
Legal & General
Aviva
HSBC
Zurich
How can I get a quote for life insurance if I’m over 70?
To get a quote for over-70s life insurance, you can contact an insurance company, use an online insurance comparison site or consider using an insurance broker.
The complexity of the application process will depend on the type of over-70s life insurance plan you choose.
If you want whole of life insurance, or to cover an inheritance tax bill, it’s best to get talk to a financial adviser that specialises in estate planning.
Can I get insurance if I’m over 70 with no medical examination?
Depending on the type of over 70s life insurance you choose, you may have to submit to a medical examination to get cover:
Over 50s: No medical examination is required as coverage is based on age, smoking status, and the amount assured.
Whole of life: You will need to answer health-related questions and possibly undergo a medical examination, which could help reduce premiums.
Term life insurance: A medical examination is usually required.
Note that pre-existing conditions may result in higher premiums.
Get expert over 70s life insurance advice
If you’re thinking about taking out life insurance post 70, it’s important to weigh up the benefits, such as financial protection for your dependents and costs your family may incur when you die, against the premium costs and the potential limitations of the cover.
Make sure you base your decision on your health, financial situation, and personal needs to ensure you choose the right policy that provides the right level of support.
Let Unbiased match you with a qualified insurance broker who can help you explore your options and find the most suitable life insurance policy for your needs as you age.
If you want to use insurance to pay an inheritance tax bill, it’s important to speak to a financial planner.
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