What Life Ins for over 60's

Maidenover

Hi all
I'm just thinking about our situation and worrying that we will have no actual Life Insurance or critical illness cover as we approach retirement age and our endowment mortgage finishes.

At that time we will be aged 60 & 62 years of age and I am wondering if there are any companies that provide some sort of insurance for this age group or will it be prohibitively expensive due to our ages.

Any thoughts on this would be most welcome.

dunstonh

At that time we will be aged 60 & 62 years of age and I am wondering if there are any companies that provide some sort of insurance for this age group or will it be prohibitively expensive due to our ages.

All insurers will still offer terms for you. 70 or 75 is the more typical limit for term assurance and 80-85 for whole of life assurance.

Avoid the over 50s plans as they are an option of last resort for those that cannot get underwritten life assurance.

-Vita-

Hi Maidenover

I believe dunstonh is stating the typical maximum 'age at entry' (the max. age that you can be when applying for the products mentioned) above.

Term Policy

Life Cover Only - typically the maximum age at the expiry of the policy is age 85, although a certain provider will cover you up until the age of 90 yrs.

Critical Illness Cover - typicall the maximum age at expiry of this type of policy is age 65-70, although a certain provider will cover you up until age 89 yrs.

Costs

There are many variables taken into account when calculating the monthly premium. You are correct to assume that the older you are when you apply, then the higher the premium.

I am not a fan of using the terms 'cheap' or 'expensive' as typically the premiums are relative to the risk that you present to the insurer. Also, without knowing your bank balance and/or priorities, in terms of providing financial security for your family and loved ones, what might appear to be 'expensive' to one person, may appear to be 'cheap' to another.

Options

There are many avenues open to you in your 60s to obtain life cover. Before deciding what type of product to pursue (i.e. a Life Cover and/or Critical Illness Cover, a Term policy, Whole of Life policy, a Guaranteed Over 50s Plan, etc) it is best to have an adviser analyse your individual circumstances and protection requirements as this will identify the best solution for your life assurance needs.

If you view my posts, I have drawn reference to Guaranteed Over 50s Plans previously, and would like to stress that they have a place. These plans are not always the best value or most suitable, however depending on your circumstances and requirements, they can be. Do not rule these plans (or any other types of policies) out, without knowing all the features, benefits, costs, etc.

Hope this helps, Maidenover?

dunstonh

If you view my posts, I have drawn reference to Guaranteed Over 50s Plans previously, and would like to stress that they have a place.

I agree with you that they have a place. Problem is that too many people buy them without realising that underwritten whole of life assurance is likely to be cheaper. Its mainly those in very poor health where the over 50s plans may offer better value. Those in good health or with general age related issues should find an underwritten whole of life plan offers a greater sum assured for a like for like premium.

-Vita-

I agree. Because the Over 50s Plans are marketed quite heavily at consumers (in comparison to other types of policies such as the 'full' whole of life policies), there is probably a tendency for people to purchase such a plan without knowing all their options and the potential benefits associated with other products, such as you state - 'Those in good health or with general age related issues should find an underwritten whole of life plan offers a greater sum assured for a like for like premium.'

Personally, I speak with people on a daily basis and the the pro's and con's of each type of policy roll on. I find the other factors, besides health, that may dictate whether a Guaranteed Over 50s Plan is a better or worse option are:

The client's budget, whether they require/prefer a gauranteed or reviewable premium, the purpose of the cover and the required sum-assured.

I have no preference over either policy as it purely depends on the individuals circumstances/requirements, which should ultimately dictate which type of policy presents the best option.