Over 60 Life Insurance for Women

By on October 18, 2018
Over 60 Life Insurance for Women

It’s a fact that women in the UK are now living longer than ever before.

A woman’s life expectancy, according to government statistics, is now 83.1. To put this into perspective in 1981 the average age was just 77. What’s more, this figure is projected to continue rising.

Whilst living a longer life is very much welcomed, it does mean that we need to financially plan accordingly.

Common expenses include:

  • Funeral costs
  • Clearing outstanding debts
  • Providing an inheritance
  • Clearing the remaining mortgage.

However, you may think after turning 60 that securing traditional life insurance is too difficult, due to the risk you pose to the insurer.

So what are your options?

We asked the award-winning life insurance broker, Reassured, to run through the possible options.

Guaranteed over 50 plans

Guaranteed over 50 plans are a very common and accessible way of securing cover when in your 60s.

The main benefit of an over 50s plan is that there are no medical questions or a need for a medical exam during the application.

If you’re aged between 50 – 85 and a UK resident you’ll be guaranteed acceptance, (hence the name guaranteed over 50 plan).

Therefore, if you’re in poor health, suffered illness or previously been declined traditional life insurance, this is a very good option.

The 12-24 month waiting period

One thing to be aware of with an over 50 plan is the waiting period, (sometimes referred to as the qualifying period).

This is a period of time, 12 or 24 months, at the start of the policy where a claim cannot be made. This stops someone who is seriously ill taking out a policy with the aim of claiming a payout a few weeks later.

If you do die during the waiting period, the premium payments you’ve already made will be refunded to your loved ones.

Certain over 50 plans now also allow you to stop paying premiums when you reach a certain age, like 90, while still enjoying cover.

Over 50s plans in summary:

  • Good option if you have medical problems
  • No medical required
  • Guaranteed acceptance (50- 85 years)
  • Easy application process
  • 12 or 24 months waiting period
  • Guaranteed payout
  • Premiums from £4-a-month
  • No cash-in value.

Whole of life insurance

A less well-known policy option isÊwhole of life insurance. However, depending on your individual circumstances it could offer more benefits than an over 50s plan.

The main difference compared with an over 50s plan is that you’ll be asked health-related questions and will probably have to undergo a medical.

If you’re in good health though, there should be nothing to fear. Think of it as an opportunity to prove to the insurer your good health, enabling you to lock in favourable premiums.

A standard whole of life policy could provide more than 40% greater cover than its better-known relation, the over 50 plan.

As the name suggests you enjoy cover protection for the whole of your life. Which means paying monthly premiums for as long as you live. Unlike standard life insurance, there’s no set term.

This can be a drawback simply because no one knows how long they’re going to live.

Lastly, although you’re able to secure a larger cover amount throughÊwhole of life, because we don’t know how long we will have to pay our premiums, it’s possible to pay in more than your beneficiaries would receive in a payout.

Like an over 50s plan, whole of life cover is a form of life assurance, as a payout is assured when you die. Whereas life insurance pays out if you die during the policy term.

Whole of life in summary:

  • Guaranteed payout
  • Larger sum assured possible, (compared to over 50 plans)
  • Good option if in good health
  • You pay premiums for life
  • Hard to secure a policy if in poor health
  • Longer application process,(compared to over 50 plans)
  • Applications include health questions and often a medical exam
  • No cash-in value, (non-investment policies).
  • Traditional term-based life insurance

Although it’s possible to secure traditional life insurance when in your 60s, generally the expensive premiums demanded simply don’t make it cost-effective.

Higher premiums are required by insurers because we pose a greater risk of passing away during the policy term.

As we age, the things we need to protect changes. For example, first-time buyers in their 30s often take out decreasing term life insurance. Here the sum assured reduces in line with a mortgage balance.

However, when we hit 60, the mortgage is often largely paid off and the children have left home and are hopefully financially independent.

Life insurance instead often turns to covering rising funeral expenses (average cost now nearly £5,000) or providing an inheritance for children and/or grandchildren.

As a result, generally speaking, an over 50 plan or whole of life cover and more suitable options. Although if you only wish to cover your funeral then a prepaid funeral plan is a viable option too.

Compare multiple quotes – the cost of premiums vary

If you take one message from this blog post, it’s this – compare quotes!

Never assume all quotes will be similar, different insurers employ different underwriting processes.

Therefore, to ensure you secure the best deal possible you need to compare multiple policies.

You can do this yourself by researching insurers online, although this can be pretty time-consuming and often frustrating.

There’s also the option of using a comparison website, however, they rarely include all the insurers in their results.

Lastly, you can use an FCA registered broker, such as Reassured.

There’s no fee for using our award-winning service and we’ll do all the hard work for you. Then we’ll present back to you the best deals we identified for you to make a decision.

No one thinks they need life insurance until they actually need it. So, if you’ve been deliberating whether or not to take out a policy, why not seize the day?

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Over 60 Life Insurance for Women