Many people aged over 70 are often surprised that they are still eligible for a life insurance policy. The good news is you are still able to get cover, the bad news for those over 70 is that your premiums can cost more than if you arranged the policy earlier in life.
On the other hand, the earlier you get a life insurance policy the cheaper it will be – which is just as relevant to those who have just turned 70 as it is to 25-year-olds.
Many of the policies we have listed below have cut-off ages of anywhere from 74 – 89 years old. So if you are over 70 and do not have a life insurance policy in place, then it’s never too late to get one arranged as it will never be as cheap for you as it is today.
Why you might need life insurance when over 70
The main reason for buying life insurance when over 70 is to cover funeral costs. The average cost of a funeral in the UK currently stands at around £4,000, so being able to contribute to the cost of your funeral would lessen the financial burden on your loved ones when you pass.
It is also quite common for people over 70 to have dependents e.g. a spouse or family member they care for, whose life would be dramatically altered without their financial contribution.
Life insurance options for over 70s
Many life insurance companies offer term life insurance policies to people over 70, which should be considered if you only want to be covered for a certain period of time. However, due to the nature of these policies they can be the more expensive option, depending on your health status.
Another option is whole of life insurance, which is also offered to over 70s by most life insurance companies. This type of policy has no end date and will last until you pass away, so it offers the peace of mind that your family and loved ones are guaranteed a payout when you die.
How to save money on life insurance for over 70s
While it’s true that the older you are the more expensive life insurance will be, it doesn’t mean you can’t find a good deal.
If you are over 70 and fear you might not even be accepted for life insurance, you may be tempted to sign up to a policy from the first insurer who offers you one simply out of relief that they will cover you. However, the best way to make sure you are getting a good deal is to shop around and compare quotes from as many life insurance companies as possible.
At Bobatoo we work with all of the top insurers to help find the best policy for you at the best price, let us help you get a free, no obligation quote:
As well as comparing quotes, another way to keep the cost of premiums down is to limit the amount of payout you require from your policy. If you want life insurance to cover the cost of a funeral, for instance, then take some time to assess exactly how much your spouse or family will need rather than guessing and ultimately paying for cover you don’t need.
The healthier you are the more likely you are to get cheaper life insurance premiums. While many pre-existing health conditions can’t be helped (e.g. diabetes), leading a demonstrably healthy lifestyle and not smoking or drinking too much will often see a reduction in the cost of life insurance.
Finally, the earlier you get a quote for life insurance, the cheaper it will be. So don’t delay and start comparing quotes now.
Life insurance for over 70s – policy options
Below we have identified some of the best options for life insurance if you are over 70.
This is by no means an exhaustive list, and we encourage you to do your own research and shop around for quotes based on your own personal situation. However, the below information should provide a useful starting point regarding what is currently available on the market.*
AA Life Insurance
The AA offer life insurance to people up to the age of 80 and offer guaranteed acceptance with no medical. The AA offer two different life insurance plans for the elderly – a fixed plan or an increasing plan.
The fixed plan stays the same throughout the life of the policy – so you pay the same premiums and get the same payout at the end of it. The increasing plan is designed to protect your payout against inflation, so the premiums will rise slightly so that the payout increases with inflation (based on the Retails Price Index).
AIG Life Insurance
AIG offer life insurance to seniors up to the age of 85 with guaranteed acceptance with no medical questions and offer a range of extra benefits that are well worth considering.
With AIG, your benefit (the payout when you pass away) is protected as long as at least half of the premiums due between commencement of the cover and age 90 have been paid. So even if you stop paying your monthly premiums your loved ones will still receive a pro rata payout.
Also, if you die from an accident within the first two years of paying premiums AIG will pay three-times your payout amount. If you die from any other cause in that time AIG will pay out one and a half times the premium payments you have paid.
Legal & General Life Insurance
Legal & General offer life insurance to UK residents up to the age of 80, with no medical and a guaranteed acceptance.
Depending on your age and circumstances premiums can cost between £5 and £75 per month.
Legal & General will payout in full after one year, and will refund any premiums paid if you pass away within the first year (unless you die of an accident, in which case the full cover will be paid).
Also, despite only paying premiums until the age of 90 your cover will stay in place for the rest of your life.
Read more…
- The average cost of life insurance in the UK
- How many life insurance policies can you have?
- Life insurance with endowment savings plan