We all need to consider our financial protection, whatever age, over 60 life insurance can help provide peace of mind protecting your wealth against inheritance tax or help supplement your dependant’s pension and cover funeral costs.
With the overwhelming advances we have seen in medicine over the past century it is no surprise we have 60 year olds climbing Everest and 90 year olds running marathons. These days, being 50 is just a baby and being 60 is more like being in your teens. The baby-boomers have pushed back the barriers in all warps of life and finance is no different.
Us being supposedly more sensible and with more experience we can enjoy a number of perks such as cheaper car insurance and buildings & contents insurance. With these benefits and life experience we must still recognise we are getting older. So it probably comes as no surprise to expect to pay higher life insurance premiums however the life insurance market is always evolving and there are now specific over 60 life insurance products available.
Finding the right over 60 life insurance
We are all unique, we all have different needs and thus your life insurance cover should be tailored to your requirements. There are a number of factors you should weigh up when buying life insurance, key considerations for your life policy are covered below.
Length of cover
In the case of a term insurance policy you will need to decide upon the time period over which you require cover, with most term insurance plans you can continue cover up to the age 80. If you are looking for a policy which is guaranteed to pay out and is not constrained by a time period then you should consider whole of life insurance.
Level of cover
As with any insurance as you increase the amount of cover you increase the premiums that you pay. At the outset of the policy you will need to decide on the level of cover you require, is the insurance for a specific loan, funeral costs or simply to provide your loved ones with some financial protection should you pass away.
Level or decreasing term insurance
You can choose between level cover where the sum insured remains fixed throughout the term of the policy, often used to provide a level of financial protection for loved ones or decreasing term insurance, whereby the level of cover reduces throughout the term of policy often used to cover a repayment loan.
Guaranteed or reviewable premiums
When signing up to your life insurance plan you will have to make a choice to pay either guaranteed or reviewable premiums. By choosing guaranteed premiums you are ensuring your rates will not increase throughout the life of the policy, premiums of £35 today are still going to cost £35 in 20 years time.
Opting for reviewable premiums gives the insurer the right to review the risk of insuring you every 2-5 years and thus have the power to alter premiums accordingly. It is the general consensus that reviewable premiums tend to come up cheaper when initially quoting however in the long-term often end up being more expensive than guaranteed premiums due to rate increases.
Indexation
A popular choice to avoid the effects inflation has on eroding the real value of your sum assured. Indexation ensures £100,000 of cover today will still be worth £100,000 in real terms in 20 years.
Waiver of premium
An additional option that protects your monthly premiums should you become seriously ill or injured and are unable to work and earn an income.
Critical illness cover
Often taking out a life insurance policy leads to also considering a critical illness policy. Life insurance as a standalone product will only cover you on death; by opting for critical illness protection you are also covering yourself against critical illnesses such as a heart attack or cancer.
Next Steps
We understand that so long as you want to financially protect your loved ones there will be a need for life cover. Given medical advances and the changes in our lifestyles over 60 life insurance is far more affordable than in the past. The risk these products impose on insurers has dropped considerably and there are many reputable life companies providing cover.
If you are looking to purchase an over 60 life insurance policy, whether it is information you require, some guidance or term insurance quotes from the leading insurers we are here to help you.
Another useful resource to utilise when buying life insurance is the FSA’s Money Made Clear site.
