Over 60s Life Insurance UK
Life in your 60s is often a time of significant transition. You might be winding down your career, enjoying a well-earned retirement, welcoming grandchildren, or embarking on new adventures. It's also a natural point to reflect on the future and ensure the financial security of those you care about most.
Contrary to what many believe, securing valuable life insurance in your 60s is not only possible but often a very sensible financial decision. The market has evolved, offering a wider range of products tailored to the needs of a generation that is living longer, healthier, and more active lives than ever before. This guide will walk you through everything you need to know about navigating your life insurance options after the age of 60.
WeCovr’s guide to life insurance options for people over 60
Entering your 60s opens a new chapter, and with it, a different perspective on financial planning. Perhaps you've paid off your mortgage and your children are financially independent. Or maybe you still have outstanding debts, are supporting family members, or want to leave a meaningful legacy.
Whatever your circumstances, life insurance can provide a crucial financial safety net. It’s not just about covering final expenses; it's about providing peace of mind, protecting your loved ones from financial hardship, and ensuring your wishes are carried out. At WeCovr, we specialise in helping people just like you find the right protection by comparing plans from all of the UK's leading insurers, ensuring you get the best possible cover for your unique situation.
Why Consider Life Insurance in Your 60s?
The reasons for taking out life insurance change as we get older. While a young family might prioritise paying off a mortgage, for someone over 60, the motivations are often different.
Here are the most common reasons people in their 60s seek life insurance:
- Covering Funeral Costs: This is one of the most frequent drivers. The cost of a funeral has risen significantly. The latest figures from SunLife's Cost of Dying Report (2024) show the average cost of a basic funeral in the UK is now over £4,000, with some send-offs costing upwards of £10,000 when extras like memorials and professional fees are included. A life insurance payout can prevent your family from facing this burden at an already difficult time.
- Clearing Outstanding Debts: Many people enter their 60s with some form of debt, such as an outstanding mortgage balance, car loans, or credit card bills. A life insurance policy ensures these liabilities are not passed on to your partner or children.
- Leaving a Financial Gift: You might want to leave a tax-free lump sum to your children or grandchildren to help them with a house deposit, university fees, or simply to give them a head start in life. This is a powerful way to create a lasting legacy.
- Inheritance Tax (IHT) Planning: If the total value of your estate (your property, savings, and possessions) is above the current threshold (£325,000 per person in 2025), your beneficiaries could face a 40% tax bill. A Whole of Life insurance policy, written in trust, can provide a lump sum specifically to cover this tax liability, ensuring your loved ones inherit the full value of your estate.
- Supporting a Partner: If your partner relies on your pension or other income, a life insurance payout can provide them with the financial stability they need to maintain their standard of living after you're gone.
The Two Main Paths: Understanding Your Core Choices
When looking for life insurance over 60, you'll generally encounter two main types of policies. Understanding the fundamental difference between them is the first step to finding the right solution.
-
Guaranteed Acceptance 'Over 50s' Plans: These policies do exactly what their name suggests. You are guaranteed to be accepted without any medical questions or examinations. They are designed for simplicity and are accessible to everyone within the specified age range (usually 50-85).
-
Medically Underwritten Insurance (Term or Whole of Life): These are the more 'traditional' types of life insurance. They require you to answer questions about your health, lifestyle, and family medical history. In some cases, a GP report or a mini-medical screening may be required. While this involves more paperwork, it can result in a significantly larger payout for a lower monthly premium if you are in reasonably good health.
Let's compare them side-by-side:
| Feature | Guaranteed 'Over 50s' Plan | Medically Underwritten Plan |
|---|---|---|
| Acceptance | Guaranteed (if you're in the age range) | Based on health and lifestyle |
| Medical Questions | None | Yes, detailed health questionnaire |
| Payout Amount | Typically smaller, fixed sums (e.g., £5k-£20k) | Can be much larger (e.g., £50k-£500k+) |
| Waiting Period | Yes (usually 12-24 months) | No, full cover from day one |
| Best For | Covering funeral costs, leaving a small gift | Larger debts, IHT planning, significant legacy |
| Premiums | Can be higher relative to the cover amount | Often lower relative to the cover amount for healthy individuals |
A Deep Dive into Over 50s Life Insurance
Over 50s plans are a popular choice for those in their 60s due to their simplicity and guaranteed acceptance. If you have pre-existing health conditions that might make standard insurance expensive or difficult to obtain, this can be an excellent option.
How do they work?
- Guaranteed Acceptance: As long as you are a UK resident aged between 50 and 85, you will be accepted.
- Fixed Premiums: You choose a monthly premium you can afford, and this amount will never change. The amount of cover (the payout) is fixed based on your age, smoking status, and the premium you choose.
- The Waiting Period: These policies have an initial "waiting period," typically 12 or 24 months. If you pass away from natural causes during this period, the insurer will not pay out the full lump sum. Instead, they will usually refund all the premiums you have paid, often with a small amount of interest (e.g., 1.5x the premiums paid). However, if you die as a result of an accident during this period, most policies will pay out the full amount. Once the waiting period is over, you are fully covered for death by any cause.
Pros and Cons of Over 50s Plans
Pros:
- No medical questions or exams needed.
- Acceptance is guaranteed.
- Premiums are fixed for life.
- Provides a straightforward way to cover final expenses.
Cons:
- The payout is generally lower than what you could get with an underwritten policy.
- You could end up paying more in premiums than the policy pays out if you live for a very long time.
- The waiting period means you're not fully covered immediately for natural causes.
Who is it for? An Over 50s plan is ideal for someone who wants to guarantee a lump sum is available for their funeral, wants to leave a small cash gift, and perhaps has health issues that make other forms of insurance less accessible.
Exploring Medically Underwritten Life Insurance
If you are in good or even average health for your age, you should always explore medically underwritten life insurance first. While the application is more detailed, the potential rewards are significant. You can secure a much larger amount of cover for your money.
The process involves answering a set of questions about:
- Your Health: Current and past conditions (e.g., heart disease, diabetes, cancer).
- Your Lifestyle: Whether you smoke or vape, your alcohol consumption, your height and weight (BMI).
- Family Medical History: Incidents of serious hereditary conditions (like heart disease or cancer) in your immediate family.
Based on your answers, the insurer's underwriters will assess your risk profile and offer you a premium for your desired level of cover. For those over 60, insurers are increasingly realistic, understanding that minor, well-managed conditions like high blood pressure or cholesterol are common and may not significantly impact premiums.
There are two main types of medically underwritten cover: Term Life Insurance and Whole of Life Insurance.
Term Life Insurance: Cover for a Fixed Period
Term insurance provides cover for a specific number of years (the "term"). If you pass away within this term, the policy pays out the agreed lump sum. If you outlive the term, the policy ends, and you get nothing back.
It's often used to cover liabilities that have a specific end date.
- Level Term Insurance: The payout amount and your premiums remain the same throughout the policy term. This is ideal for leaving a fixed lump sum for your family.
- Decreasing Term Insurance: The payout amount reduces over time, usually in line with a repayment mortgage. This is less common for over 60s unless you have recently taken out a large loan.
- Family Income Benefit: Instead of a single lump sum, this pays out a regular, tax-free income to your family for the remainder of the policy term. This can be a great way to replace lost income from a pension.
For someone in their 60s, a term of 10, 15, or 20 years might be chosen to provide protection until they reach 75 or 80, covering the years when their partner might be most financially vulnerable.
Whole of Life Insurance: Cover That Lasts a Lifetime
As the name implies, Whole of Life insurance covers you for your entire life. As long as you keep paying the premiums, a payout is guaranteed whenever you pass away.
This makes it the ideal tool for two specific goals:
- Guaranteed Legacy: You know for certain that a lump sum will be paid to your beneficiaries, making it perfect for leaving a substantial inheritance.
- Inheritance Tax (IHT) Planning: This is the primary use for Whole of Life cover for affluent individuals. By writing the policy in trust, the payout goes directly to the beneficiaries and doesn't form part of your estate. This money can then be used to pay the IHT bill, preserving the value of your assets for your family.
Whole of Life premiums are higher than term insurance premiums because the payout is guaranteed. Some plans have premiums that are fixed for life, while others are reviewable, meaning the insurer can increase them in the future (often every 5 or 10 years). It's crucial to understand which type you are being offered.
Critical Illness Cover and Income Protection in Your 60s
Life insurance pays out upon death, but what if you're unable to work due to a serious illness or injury? Many people continue to work full-time or part-time into their 60s and 70s.
Critical Illness Cover
This can be added as an optional extra to a life insurance policy. It pays out a tax-free lump sum if you are diagnosed with a specific, serious illness defined in the policy (e.g., a heart attack, stroke, or certain types of cancer).
Considerations for Over 60s:
- Availability: The maximum age to take out critical illness cover is typically around 64, with cover usually ending by age 70 or 75.
- Cost: Premiums increase significantly with age due to the higher statistical risk of illness.
- Value: It can provide a vital financial cushion to cover medical costs, make home adaptations, or simply replace lost income while you recover, without the need to dip into your pension pot.
Income Protection
Income Protection pays out a regular, tax-free monthly income if you are unable to work due to any illness or injury. It's designed to replace a portion of your lost earnings.
Considerations for Over 60s:
- Still Working? If you are still earning an income, this is arguably the most important protection policy you can own.
- Maximum Age: Most policies will allow you to take out cover up to age 60-64 and will pay out until your chosen retirement age (e.g., 67 or 70).
- Self-Employed & Freelancers: For the growing number of people working for themselves in their 60s, this cover is essential as there is no employer sick pay to fall back on.
A specialist broker like WeCovr can help you navigate the options for these covers, which can be more complex for older applicants.
Specialist Insurance for Over 60s: Business Owners & Gifting
If you are a company director, business owner, or are planning to gift significant assets, there are specialist insurance products designed for your needs.
For Business Owners
Many people in their 60s are still at the helm of their businesses. Protection insurance is vital to ensure business continuity.
- Key Person Insurance: If your business relies heavily on you (or another key employee), this policy pays a lump sum to the business if that person dies or suffers a critical illness. The funds can be used to recruit a replacement or cover lost profits.
- Executive Income Protection: This is a company-funded income protection policy for directors. The company pays the premium (which is usually an allowable business expense), and if the director is unable to work, the benefit is paid to the company, which then pays it to the director via PAYE. It's a highly tax-efficient way to protect your income.
For Inheritance Tax Planning
- Gift Inter Vivos Insurance: If you gift a large sum of money or an asset to someone, it is considered a Potentially Exempt Transfer (PET). If you pass away within 7 years of making the gift, it may become subject to Inheritance Tax. A Gift Inter Vivos policy is a special type of term insurance designed to cover this potential tax liability. The term is 7 years, and the cover amount reduces over time, mirroring the "taper relief" rules for IHT on gifts.
How Health and Lifestyle Affect Your Premiums After 60
For medically underwritten policies, your health is the single biggest factor in determining your premium. Insurers want to build a clear picture of your life expectancy.
| Factor | Low-Risk Profile (Lower Premiums) | High-Risk Profile (Higher Premiums) |
|---|---|---|
| Smoking | Non-smoker/vaper for 12+ months | Smoker, vaper, or use of nicotine products |
| BMI | Within a healthy range (e.g., 19-28) | Significantly underweight or overweight |
| Alcohol | Within recommended weekly units (e.g., <14) | High consumption |
| Blood Pressure | Normal or well-managed with medication | Uncontrolled high blood pressure |
| Cholesterol | Normal or well-managed with statins | High, unmanaged cholesterol |
| Medical History | Minor past issues, fully recovered | History of cancer, heart attack, stroke |
The Good News: Don't be discouraged if you have health conditions. Insurers are adept at assessing "well-managed" conditions. For example, having Type 2 diabetes that is controlled through diet and medication will result in a much better outcome than having uncontrolled diabetes with complications.
This is also where we at WeCovr like to go the extra mile. We believe in supporting our clients' long-term health. That's why every customer receives complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app. Taking small, consistent steps to improve your diet and manage your weight can have a positive impact not just on your insurance application, but on your overall quality of life.
The Cost of Over 60s Life Insurance: What to Expect
It's the number one question: "How much will it cost?" The answer is always: "It depends." Premiums are highly personalised. The key factors are your age, your health, whether you smoke, the type of policy, the amount of cover, and the length of the term.
To give you an idea, here are some illustrative monthly premiums for a non-smoker in good health. These are examples only and your actual quote will vary.
Example Premiums: £100,000 of Level Term Insurance
| Age | 10-Year Term | 15-Year Term |
|---|---|---|
| 60 | £55 | £75 |
| 65 | £90 | £130 |
Example Premiums: Over 50s Guaranteed Acceptance Plan
| Age | £5,000 Cover | £10,000 Cover |
|---|---|---|
| 60 | £20 | £38 |
| 65 | £28 | £55 |
| 70 | £39 | £78 |
Please note: These are purely illustrative examples as of early 2025. Costs can and do vary significantly between insurers.
The key takeaway is that for the same monthly premium, a healthy 60-year-old could get significantly more cover with a medically underwritten term policy than with a guaranteed Over 50s plan. This is why it's so important to explore all your options.
Navigating the Application Process: A Step-by-Step Guide
Applying for life insurance might seem daunting, but it's a straightforward process, especially with an expert guide.
- Define Your 'Why': First, be clear about what you want the insurance to achieve. Is it to cover your funeral? Pay off a debt? Leave a legacy? This will determine the type and amount of cover you need.
- Gather Your Information: Before speaking to an adviser, have key details to hand: your doctor's address, a list of any medications you take, and approximate dates of any significant medical events.
- Speak to an Independent Broker: This is the most crucial step. A broker, like WeCovr, has access to the whole market. We know which insurers are more lenient with certain health conditions or offer better rates for older applicants. This saves you time and money compared to going to insurers directly.
- Complete the Application: Your adviser will guide you through the application form, ensuring you answer all the health and lifestyle questions accurately and honestly. Non-disclosure can invalidate your policy, so full transparency is vital.
- The Underwriting Process: The insurer will now assess your application. They may write to your GP for a report (which they will do with your permission) or ask you to attend a nurse screening (a simple check of your height, weight, blood pressure, and a blood/urine sample). This is all paid for by the insurer.
- Receive Your 'Terms': The insurer will come back with a decision. This could be:
- Accepted on Standard Rates: Your application is accepted at the price you were quoted.
- Accepted with a 'Loading': Your premium is increased by a certain percentage due to a health risk.
- Accepted with an 'Exclusion': The policy will have a clause excluding claims related to a specific pre-existing condition.
- Postponed or Declined: They may ask you to re-apply in the future, or in rare cases, decline to offer cover.
- Policy Goes Live: Once you accept the terms and set up your direct debit, your policy is active, and you are covered. You will receive your policy documents to store in a safe place.
Writing Your Policy in Trust: An Essential Step
This is one of the most important yet often overlooked aspects of life insurance. A 'trust' is a simple legal arrangement that separates your life insurance policy from your estate.
When you place your policy in trust, you name specific people (the 'beneficiaries') who should receive the payout.
The Benefits of Using a Trust:
- Avoids Probate: When you die, your estate has to go through a legal process called probate, which can take many months. A policy in trust is paid directly to the beneficiaries, often within weeks of the death certificate being issued. This provides your family with fast access to funds when they need it most.
- Avoids Inheritance Tax: Because the policy is not part of your estate, the payout is not subject to 40% Inheritance Tax. This means a £100,000 policy pays out £100,000, not £60,000 after tax.
- Ensures Your Wishes are Followed: The trust deed specifies exactly who gets the money, preventing any ambiguity or family disputes.
Most insurers offer a standard trust form that you can complete for free when you take out your policy. Your adviser can help you fill this out correctly. It's a simple piece of paperwork that adds immense value and ensures your policy does exactly what you intend it to.
Final Thoughts: Securing Your Peace of Mind
Life insurance in your 60s is about taking control and making a positive choice for the future of your loved ones. The market offers more choice and flexibility than ever, from simple, guaranteed plans for funeral costs to comprehensive policies designed for complex estate planning.
The most important step you can take is to seek professional, independent advice. An expert adviser will take the time to understand your personal circumstances, navigate the market on your behalf, and recommend the solution that provides the best value and security for you and your family. Your 60s are a time for enjoying life to the full, and knowing you have the right protection in place is the ultimate peace of mind.
Is it too late to get life insurance if I'm over 60?
Do I need a medical examination to get life insurance over 60?
What if I have pre-existing health conditions?
Is Over 60s life insurance expensive?
Should I choose a guaranteed plan or an underwritten policy?
Can I use life insurance to pay for my funeral?
Why life insurance and how does it work?
What is Life Insurance?
Life insurance is an insurance policy that can provide financial support for your loved ones when you or your joint policy holder passes away. It can help clear any outstanding debts, such as a mortgage, and cover your family's living and other expenses such costs of education, so your family can continue to pay bills and living expenses. In addition to life insurance, insurance providers offer related products such as income protection and critical illness, which we will touch upon below.How does it work?
Life insurance pays out if you die. The payout can be in the form of a lump sum payment or can be paid as a replacement for a regular income. It's your decision how much cover you'd like to take based on your financial resources and how much you'd like to leave to your family to help them deal with any outstanding debts and living expenses. Your premium depends on a number of factors, including your occupation, health and other criteria.The payout amount can change over time or can be fixed. A level term or whole of life policy offers a fixed payout. A decreasing term policy offers a payout that decreases over the term of the cover.
With critical illness policies, a payout is made if you’re diagnosed with a terminal illness with a remaining life expectancy of less than 12 months. While income protection policies ensure you can continue to meet your financial commitments if you are forced to take an extended break from work. If you can’t work because you’ve had an accident, fallen sick, or lost your job through no fault of your own, income protection insurance pays you an agreed portion of your salary each month.
Income protection is particularly helpful for people in dangerous occupations who want to be sure their mortgage will always be covered. Income protection only covers events beyond your control: you’re much less likely to be covered if you’re fired from your job or if you injure yourself deliberately.
Questions to ask yourself regarding life insurance
Just ask yourself:👉 Who would pay your mortgage or rent if you were to pass away or fall seriously ill?
👉 Who would pay for your family’s food, clothing, study fees or lifestyle?
👉 Who would provide for the costs of your funeral or clear your debts?
👉 Who would pay for your costs if you're unable to work due to serious illness or disability?
Many families don’t realise that life, income protection and critical illness insurance is one of the most effective ways to protect their finances. A great insurance policy can cover costs, protect a family from inheriting debts and even pay off a mortgage.
Many would think that the costs for all the benefits provided by life insurance, income protection insurance or critical illness insurance are too high, but the great news is in the current market policies are actually very inexpensive.
Benefits offered by income protection, life and critical illness insurance
Life insurance, income protection and critical illness insurance are indispensable for every family because a child loses a parent every 22 minutes in the UK, while every single day tragically 60 people suffer major injuries on the UK roads. Some people become unable to work because of sickness or disability.Life insurance cover pays out a lump sum to your family, loved ones or whomever you choose to get the money. This can be used to secure the financial future of your loved ones meaning they would not have to struggle financially in the event of your death.
If it's a critical illness cover, the payout happens sooner - upon diagnosis of a serious illness, disability or medical condition, easing the financial hardship such an event inevitably brings.
Income protection insurance can be very important for anyone who relies on a pay check to cover their living costs, but it's especially important if you’re self-employed or own a small business, where your employment and income is a bit less stable. It pays a regular income if you can't work because of sickness or disability and continues until you return to paid work or you retire.
In a world where 1 in 4 of us would struggle financially after just four weeks without work, the stark reality hits hard – a mere 7% of UK adults possess the vital shield of income protection. The urgency of safeguarding our financial well-being has never been more palpable.
Let's face it – relying on savings isn't a solution for everyone. Almost 25% of people have no savings at all, and a whopping 50% have £1,000 or less tucked away. Even more concerning, 51% of Brits – that's a huge 27 million people – wouldn't last more than one month living off their savings. That's a 10% increase from 2022.
And don't even think about state benefits being a safety net. The maximum you can expect from statutory sick pay is a mere £109.40 per week for up to 28 weeks. Not exactly a financial lifeline, right?
Now, let's tackle a common objection: "But I have critical illness insurance. I don't need income protection too." Here's the deal – the two policies apply to very different situations. In a nutshell:
- Critical illness insurance pays a single lump sum if you're diagnosed with or undergo surgery for a specified potentially life-threatening illness. It's great for handling big one-off expenses or debts.
- Income protection, on the other hand, pays a percentage of your salary as a regular payment if you can't work due to illness or injury. It's the superhero that tackles those relentless monthly bills.
Types of life insurance policies
Common reasons for getting a life insurance policy are to:✅ Leave behind an amount of money to keep your family comfortable
✅ Protect the family home and pay off the mortgage in full or in part
✅ Pay for funeral costs
Starting from as little as a couple of pounds per week, you can do all that with a Life Policy.
Level Term Life Insurance
One of the simplest forms of life insurance, level term life insurance works by selecting a length of time for which you would want to be covered and then deciding how much you would like your loved ones to receive should the worst happen. Should your life insurance policy pay out to your family, it would be in a lump sum amount that can be used in whatever way the beneficiary may wish.
Decreasing Term Life Insurance
Decreasing term life insurance works in the same way as level term, except the lump sum payment amount upon death decreases with time. The common use for decreasing term life cover is to protect against mortgage repayment as the lump sum decreases along with the principal of the mortgage itself.
Increasing Term Life Insurance
Increasing term life insurance aims to pay out a cash sum growing each year if the worst happens while covered by the policy. With increasing term life cover amount insured increases annually by a fixed amount for the length of the policy. This can protect your policy's value against inflation, which could be advantageous if you’re looking to maintain your loved ones’ living standards, continue paying off your mortgage in line with its repayment schedule and cover your children’s education fees.
Whole of Life Insurance
Whereas term life insurance policies only pay out if you pass away during their term, whole of life insurance pays out to your beneficiaries whenever this should happen. The most common uses for whole life insurance are to cover the costs of a funeral or as a vehicle for your family's inheritance tax planning.
Family Income Benefit
Family income benefit is a somewhat lesser-known product in the family of life insurance products. Paying out a set amount every month of year to your beneficiaries, it is the most cost-effective way of maintaining your family's living standards to an age where you'd expect them to be able to support themselves financially. The most common use would be for a family with children who are not working yet so are unable to take care of themselves financially.
Relevant Life Insurance
Relevant Life Insurance is a tax-efficient policy for a director or single employee. A simple level term life insurance product, it is placed in a specific trust to ensure its tax efficiency. The premiums are tax deductible and any benefit payable should a claim arise is also paid out tax free, which makes it an attractive product for entrepreneurs and their businesses.
Important Fact!
We can look at a more suitable option mid-term!
Why is it important to get life insurance early?
👉 Many people are very thankful that they had their life, income protection, and critical illness insurance cover in place before running into some serious issues. Critical illness and income protection insurance is as important as life insurance for protecting your family's finances.👉 We insure our cars, houses, bicycles and even bags! Yet our life and health are the most precious things we have.
Easily one of the most important insurance purchases an individual or family can make in their lifetime, the decision to buy life, income protection, critical illness and private medical health insurance can be made much simpler with the help of FCA-authorised advisers. They are the specialists who do the searching and analysis helping people choose between various types of life insurance policies available in the market, including income protection, critical illness and other types of policies most suitable to the client's individual circumstances.
It certainly won't do any harm if you speak with one of our experienced FCA-authorised insurance partner experts who are passionate about advising people on financial matters related to life insurance and are keen to provide you with a free consultation.
You can discuss with them in detail what affordable life, income protection, critical illness or private medical health insurance plan for the necessary peace of mind they would recommend! WeCovr works with some of the best advisers in the market.
By tapping the button below, you can book a free call with them in less than 30 seconds right now:
Our Group Is Proud To Have Issued 800,000+ Policies!
We've established collaboration agreements with leading insurance groups to create tailored coverage
How It Works
1. Complete a brief form
2. Our experts analyse your information and find you best quotes
3. Enjoy your protection!
Any questions?
Learn more
Who Are WeCovr?
WeCovr is an insurance specialist for people valuing their peace of mind and a great service.👍 WeCovr will help you get your private medical insurance, life insurance, critical illness insurance and others in no time thanks to our wonderful super-friendly experts ready to assist you every step of the way.
Just a quick and simple form and an easy conversation with one of our experts and your valuable insurance policy is in place for that needed peace of mind!