What is over 60s life insurance?
There aren’t many life insurance policies specifically for people over 60. But most providers do offer over 50s life cover instead. And it can still be a great option when you turn 60.
Over 50s life cover is a type of whole life insurance. You don’t need a medical exam to be approved and if you have any pre-existing medical conditions, they won’t affect your eligibility to get cover. Whole life insurance also lasts for the rest of your life and your family is guaranteed a payout when you pass away. This gives you peace of mind knowing that your loved ones will get financial support after you're gone.
This is different from term life insurance, which only covers you for a certain amount of time, like 10 or 20 years for example. You’ll also need a medical check. If you’re 60, you can still apply for term life insurance, but it might cost more because of your age and health.
But remember, since over 50s policies don’t require a medical exam, the payouts tend to be smaller compared to term life insurance.
Why should I get over 60s life insurance?
In your 60s, you might still be working or preparing for retirement. An over 50s policy could be a simple, affordable way to cover important expenses when you’re no longer around.
This could include:
- Funeral costs
- Small debts, such as bills, credit cards or personal loans
- Leaving a financial gift for loved ones
Key features of Post Office Over 50s Life Cover
Our over 50s life cover is a simple way to provide your loved ones with a cash sum when you pass away. Here’s what else you need to know:
- If you're aged 50 to 80 and a UK resident, you can get cover in place straight away
- You’ll stop paying premiums when you turn 95
- The cover lasts for life, even when you stop paying premiums after your 95th birthday
Protected benefit
Our over 50s life cover also includes a protected benefit. This means if you stop paying your premiums before your 95th birthday, we’ll still pay out at least half of the cover amount when you pass away, as long as you’ve paid at least halfway. The halfway point is based on the start of the policy anniversary after you turn 95.
- Funeral benefit option
Most people use their policy payout to help cover funeral costs. With our over 50s life cover, you can add a funeral benefit option to your policy, for free, when you apply or at any time.
Here’s how it works:
- Your policy payout can be made directly to Co-op Funeralcare to arrange and help pay for your chosen funeral
- You can get up to £250* off the final cost
- Co-op Funeralcare will support your loved ones through the process at a difficult time
*The discount you get depends on the type of funeral you choose: £250 for Tailored, £100 for Essential, and £50 for Direct to Cremation.
Whatever your reason for choosing our over 50s life cover, it offers peace of mind by ensuring your loved ones are protected after you’re gone. You can’t outlive your policy, and as long as you pay your premiums, you’ll know exactly what your loved ones will receive.
Can I use an over 60s life insurance policy to pay inheritance tax?
While it’s possible, it’s unlikely that an over 60s life insurance policy will cover your entire inheritance tax bill.
According to HMRC rules, inheritance tax is only charged on estates worth more than £325,000. The maximum payout for a Post Office Over 50s Life Cover policy is £10,000, depending on your age.
If your estate is under £350,000, this could help with inheritance tax. But this applies to only a small number of people. That’s why it’s important to know the value of your estate when choosing the right life insurance.
Please note: These figures are examples and shouldn’t be used to make financial decisions. We aim to keep our content up to date, but tax rules may change before we can update our pages. It’s best to seek professional financial advice for inheritance tax planning.
Do I need a medical to qualify for over 60s life insurance?
In most cases, you don’t need a medical exam to qualify for an over 50s policy. But this depends on the insurer, their policies, and your health and lifestyle. You might still be asked a few health questions.
If you take out over 50s life cover with Post Office, there are no medical checks. You’re guaranteed to be accepted if you’re a UK resident between the ages of 50 and 80.
What other types of life insurance are there?
If you’re over 60, you can choose from other types of life insurance, like decreasing term, level term and increasing term.
These are all fixed-term policies, which means they cover you for a set time. They usually offer more cover compared to over 50s policies and can meet different needs.
Here’s a quick comparison of these policies:
| Type of life insurance | Best for | Features |
|---|---|---|
| Decreasing term | Paying off a mortgage or large debt | The payout reduces over time as the debt is paid off |
| Level term | Providing a fixed payout over a set period | The payout remains the same throughout the policy |
| Increasing term | Protecting against inflation | The payout increases yearly to keep up with inflation but premiums rise each year too |
If you’re looking at fixed-term life insurance over 60, keep in mind that premiums will be higher due to health and age factors. The level of cover you choose also affects the cost. For example, if you want a policy that pays out £750,000, you’ll pay more for it.
These policies usually need medical checks and only cover you for a set period. There’s also the risk of outliving your policy, meaning your loved ones won’t get a payout.
That’s why it’s smart to explore other options alongside over 50s policies. Take time to do your research, compare what different providers offer and speak to an independent financial advisor to help you make the best choice.
Enjoying life over 60
Choosing life insurance after 60 gives you peace of mind, knowing you’re doing your best to support your loved ones when you’re no longer around. The right policy depends on your needs, how much cover you want and how long you need it for.
Use our life insurance calculator to see how much cover might be right for you.
Key takeaways
- If you’re over 60 and looking for life insurance, over 50s life cover might be a good choice. Otherwise known as whole life insurance, it’s a simple, affordable way to make sure your loved ones get some financial support when you pass away. It lasts for the rest of your life and can help cover funeral costs, pay off small debts, or leave a small gift for family
- You don’t need any medical checks for an over 50s policy. For example, with Post Office Over 50s Life Cover, you’re guaranteed to be accepted if you’re between 50 and 80 and live in the UK. You pay premiums until you turn 95, and after that, you’re covered for life without paying any more
- If you’re over 60, you can also look at fixed-term life insurance, like decreasing term, level term, and increasing term policies. They all have different features and benefits, so it’s important to compare options and talk to an independent financial advisor to find what suits you best
