Best Over 60s Life Insurance Policies UK

Life in your sixties and beyond is often a time of newfound freedom and opportunity. With children grown and careers winding down, the focus shifts to enjoying the fruits of your labour, spending time with family, and pursuing long-held passions. It’s also a natural time to review your financial plans and ensure the security of your loved ones.

For many, life insurance is a cornerstone of this financial security. It’s not about dwelling on the inevitable; it’s about providing a safety net, leaving a meaningful legacy, and securing peace of mind. However, the world of life insurance can seem complex, particularly for those over 60. What are the options? Is it affordable? Is it too late to apply?

This definitive guide will answer all these questions and more. We’ll demystify the different types of policies, explore how your health impacts your options, and provide clear, actionable advice to help you find the right cover for your unique circumstances.

WeCovr compares insurers for older adults seeking cover

Navigating the UK's life insurance market can be a daunting task. With dozens of providers, each with its own unique products, pricing structures, and underwriting criteria, it’s easy to feel overwhelmed. This is especially true for applicants in their 60s, where the choice between policies can have significant financial implications.

At WeCovr, we specialise in helping older adults find the perfect protection. Our role as an expert, independent broker is to understand your personal needs and then search the entire market on your behalf. We have deep knowledge of which insurers are most favourable for specific age groups, health profiles, and financial goals. We don't just compare prices; we compare features, benefits, and the small print, ensuring you get a policy that truly delivers when it's needed most. This guide is an extension of that expertise, designed to empower you with the knowledge to make confident decisions about your financial future.

Why Consider Life Insurance in Your 60s?

The reasons for taking out life insurance in your 60s are as diverse as the individuals themselves. Far from being a one-size-fits-all product, it can be tailored to meet a wide range of financial objectives.

According to the Office for National Statistics (ONS), a man aged 65 in the UK today can expect to live, on average, for another 19 years, and a woman for another 21 years. These lengthening lifespans mean financial planning is more important than ever.

Here are some of the most common reasons people in their 60s seek cover:

• Covering Funeral Costs: The average cost of a basic funeral in the UK continues to rise. According to the 2024 SunLife Cost of Dying report, the average cost of a funeral is now £4,141. A life insurance policy can provide a dedicated sum to cover these expenses, relieving your family of a significant financial burden at a difficult time.
• Paying Off Debts: Many people still have an outstanding mortgage, personal loans, or credit card debts in their 60s. A life insurance payout can clear these debts, ensuring your partner or family can remain in the family home without financial strain.
• Providing for a Partner: If your partner relies on your pension or income, a life insurance policy can provide them with a lump sum or a regular income to maintain their standard of living after you're gone.
• Leaving a Legacy: You might want to leave a cash gift for your children or grandchildren. This could help with a house deposit, university fees, or simply provide them with a financial head start in life.
• Inheritance Tax (IHT) Planning: For those with larger estates, life insurance is a powerful tool. A policy written 'in trust' can be used to pay the potential IHT bill on your estate, ensuring more of your assets are passed on to your beneficiaries. The standard IHT threshold is £325,000 per person.

Understanding the Main Types of Life Insurance for Over 60s

The "best" life insurance policy doesn't exist in a vacuum; it depends entirely on your needs, health, and budget. The three main options available to those over 60 are Guaranteed Acceptance, Term Life, and Whole of Life insurance.

Over 60s Guaranteed Acceptance Life Insurance

Often marketed as "Over 50s Life Insurance," this is a specific type of plan that is very easy to arrange.

• How it works: As the name suggests, if you are a UK resident within the specified age bracket (usually 50-85), your acceptance is guaranteed. There are no medical questions and no GP reports.
• Pros:
  • Guaranteed Acceptance: Ideal for individuals with significant pre-existing health conditions who might be declined for other types of cover.
  • Simplicity: The application process is incredibly straightforward and fast.
• Cons:
  • Waiting Period: These policies have a "waiting" or "deferment" period, typically 12 or 24 months. If you die from natural causes during this time, the insurer will not pay the full cash sum. Instead, they will usually refund the premiums you have paid, often with a small amount of interest. Accidental death is typically covered from day one.
  • Lower Payout: The maximum sum assured (the payout amount) is generally lower than other policy types, often capped at around £20,000-£25,000.
  • Higher Cost Per Pound of Cover: Because the insurer takes on unknown risk, the premiums are relatively high for the amount of cover you get. It's possible to pay more in premiums than the policy will pay out if you live for a very long time.
• Best for: Primarily designed to cover funeral costs or leave a small cash gift.

Term Life Insurance

This is the most common and often most affordable type of life insurance.

• How it works: You choose a level of cover and a specific period of time (the "term") for which you want to be insured. The policy only pays out if you pass away within that term. If you outlive the policy term, the cover ceases, and you get nothing back.
• Types:
  • Level Term: The payout amount and your premiums remain the same throughout the policy term. This is good for covering an interest-only mortgage or providing a set lump sum for your family.
  • Decreasing Term: The payout amount reduces over time, usually in line with a repayment mortgage. Because the potential payout decreases, premiums are lower than for level term cover.
• Pros:
  • Affordability: Generally the cheapest way to get a large amount of cover.
  • High Cover Amounts: You can secure substantial cover, often running into hundreds of thousands of pounds.
  • Flexibility: You can choose a term that matches a specific need, such as the remaining years on your mortgage.
• Cons:
  • Medical Underwriting: You will need to answer health and lifestyle questions. Insurers may request a GP report or a medical examination.
  • No Payout After Term: The cover has a definite end date.
• Best for: Covering a mortgage, providing for a partner or dependents for a fixed period, or protecting a business.

Whole of Life Insurance

This policy provides cover that lasts for your entire life, meaning a payout is guaranteed whenever you pass away.

• How it works: You pay a monthly or annual premium, and the policy remains in force until you die, at which point it pays out the agreed sum.
• Types:
  • Guaranteed Premiums: Your premiums are fixed for life and will never change. This is the more expensive option initially but provides long-term certainty.
  • Reviewable Premiums: Your premiums are reviewed by the insurer at regular intervals (e.g., every 5 or 10 years). They may increase based on factors like your age or a general change in the insurer's rates. This can be cheaper to start with but carries the risk of becoming unaffordable later in life.
• Pros:
  • Guaranteed Payout: Provides absolute certainty that your beneficiaries will receive the money.
  • Estate Planning: An excellent tool for Inheritance Tax planning when written in trust.
• Cons:
  • Cost: This is typically the most expensive form of life insurance.
  • Potential for Rising Premiums: If you choose a reviewable plan, the costs could escalate significantly in your 80s and 90s.
• Best for: Leaving a guaranteed legacy, IHT planning, or covering funeral costs if you are in good health and can secure a policy for a lower cost than a guaranteed acceptance plan.

Table 1: Comparing Key Life Insurance Types for Over 60s

How Do Insurers Assess Applications from Over 60s?

For Term and Whole of Life policies, insurers carry out a process called "underwriting" to assess the level of risk you present. This process determines whether they can offer you cover and at what price. For applicants over 60, this assessment is particularly thorough.

Key factors insurers consider include:

• Age: This is a primary factor. The older you are, the higher the statistical probability of a claim, and therefore, the higher the premium.
• Health & Medical History: This is the most detailed part of the application. You will be asked about:
  • Pre-existing conditions: Such as high blood pressure, high cholesterol, diabetes, heart conditions, or a history of cancer.
  • Recent treatments or investigations: Any recent hospital stays, surgeries, or specialist consultations.
  • Medication: A list of any prescribed medications.
  • Measurements: Your height, weight (to calculate your BMI), and potentially blood pressure and cholesterol readings.
• Lifestyle:
  • Smoking/Vaping: Smokers can expect to pay at least double the premium of a non-smoker. This includes cigarettes, cigars, pipes, and nicotine replacement products like vapes. You typically need to be nicotine-free for at least 12 months to be classed as a non-smoker.
  • Alcohol Consumption: You'll be asked about your weekly unit intake. A history of alcohol-related health issues will significantly impact your application.
• Family Medical History: Insurers are interested in whether your immediate relatives (parents, siblings) suffered from hereditary conditions like heart disease or certain cancers before a certain age (usually 60 or 65).

It is vitally important to be completely honest on your application form. Non-disclosure of a material fact (such as a medical condition or smoking) can lead to your policy being voided and a claim being denied.

Beyond the Basics: Other Protection Policies to Consider

While life insurance is crucial, it’s only one part of a complete financial protection plan. As we age, the risk of illness or injury also increases, making other types of cover important to consider.

Critical Illness Cover (CIC)

Critical Illness Cover pays out a tax-free lump sum if you are diagnosed with one of a specific list of serious medical conditions defined in the policy. Common conditions covered include heart attack, stroke, and many types of cancer.

• Relevance for Over 60s: The incidence of these conditions increases with age. A CIC payout can be a lifeline, helping to:
  • Cover private medical treatment or specialist care.
  • Pay for adaptations to your home (e.g., a stairlift).
  • Replace lost income if you or your partner have to stop working.
  • Simply reduce financial stress during recovery.

Getting CIC over 60 can be more challenging and expensive than for younger applicants, and policies often have an upper age limit for new applications (e.g., 65). However, it is still possible, and combining it with a life insurance policy can sometimes be more cost-effective.

Family Income Benefit (FIB)

This is a variation of term life insurance. Instead of paying out a single lump sum upon death, it pays a regular, tax-free income to your beneficiaries for the remainder of the policy term.

• Relevance for Over 60s: This can be an excellent way to provide for a surviving partner. A regular monthly income can feel more manageable than a large lump sum and makes budgeting easier. For example, you could set up a policy to pay your partner £1,000 a month for 15 years, ensuring bills are covered without them having to worry about managing a large investment.

Gift Inter Vivos & Inheritance Tax (IHT) Planning

This is a specialist area where financial advice is key. In the UK, if you gift money or assets, you must survive for seven years for that gift to be completely free of Inheritance Tax. This is known as the "7-year rule".

A Gift Inter Vivos policy is a specific type of life insurance designed to solve this problem. It's essentially a decreasing term policy where the cover amount reduces over seven years, mirroring the decreasing IHT liability on the gift. If you were to pass away within the seven-year period, the policy would pay out to cover the tax bill.

For broader IHT planning, a Whole of Life policy is often the tool of choice. By placing the policy 'in trust', the payout falls outside of your estate and can be used by your beneficiaries to pay the IHT bill, preserving the value of the assets you want to pass on.

Specialist Cover for Business Owners and the Self-Employed Over 60

A growing number of people are continuing to work past the traditional retirement age, many of them running their own businesses or working as freelancers. Standard life insurance is important, but these individuals have additional needs.

Key Person Insurance

If you are a director or a crucial employee in a small business, your death or serious illness could have a devastating financial impact on the company. Key Person Insurance is taken out and paid for by the business. The policy pays a lump sum to the business to cover lost profits, recruit a replacement, or clear business debts.

Executive Income Protection

This is a tax-efficient way for a limited company to protect a director's income. The company pays the premiums for an income protection policy on behalf of the director. If the director is unable to work due to illness or injury, the policy pays a regular income to the company, which can then be paid out to the director as salary. The premiums are typically an allowable business expense.

Personal Sick Pay & Income Protection

For sole traders and freelancers, there is no employer to fall back on for sick pay. Personal Income Protection or a shorter-term "Personal Sick Pay" policy can provide a monthly income if you are unable to work. While obtaining a new long-term policy that pays out until retirement age can be difficult in your 60s, short-term plans that pay out for 1, 2, or 5 years per claim are often more accessible and can provide a vital buffer during a period of illness.

How Health and Lifestyle Choices Impact Your Premiums

Insurers reward healthy living with lower premiums. The good news is that it’s never too late to make positive changes that can benefit both your wellbeing and your wallet.

The Power of a Healthy Lifestyle

When you apply for a medically underwritten policy, insurers are essentially betting on your longevity. The healthier you are, the better the odds in their eyes.

• Diet & Weight: A balanced diet rich in fruits, vegetables, and whole grains contributes to a healthy weight and can reduce the risk of conditions like heart disease and type 2 diabetes. Insurers use your Body Mass Index (BMI) as a key indicator of health risk.
• Exercise: Regular physical activity is one of the best things you can do for your health. NHS guidelines for adults aged 65 and over recommend at least 150 minutes of moderate-intensity activity a week. This could be brisk walking, cycling, or swimming. It improves cardiovascular health, strengthens bones, and boosts mental wellbeing.
• Smoking & Vaping: This is the single largest lifestyle factor affecting premiums. A 60-year-old smoker can easily pay more than double for the same life insurance policy as a 60-year-old non-smoker. To be considered a non-smoker, you must have been free of all nicotine and tobacco products (including patches and vapes) for at least 12 months.
• Alcohol: Moderate alcohol consumption is generally not an issue, but heavy drinking can lead to higher premiums or even a declined application, as it is linked to a range of health problems.

At WeCovr, we believe in supporting our clients' overall wellbeing. That’s why, in addition to finding you the best insurance policy, we provide our customers with complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app. It’s a simple tool to help you make informed choices about your diet, supporting your health goals long after your policy is in place.

Comparing the UK's Leading Insurers for Over 60s

There is no single "best" insurer for everyone over 60. The ideal provider for you will depend on your health, the type of cover you want, and your budget. However, different insurers have different strengths. A specialist broker like WeCovr can match your profile to the insurer most likely to give you the best terms.

Table 2: UK Insurer Strengths for Over 60s Cover

Disclaimer: This table is for illustrative purposes only. The suitability of an insurer depends on individual circumstances.

The Cost of Life Insurance for Over 60s: Example Premiums

Cost is a major consideration for most people. To give you a general idea, we've put together some illustrative monthly premiums.

Please note: These are examples for a healthy non-smoker and are for illustrative purposes only. Your actual premium will depend on your personal circumstances and the insurer's final underwriting decision.

Table 3: Example Monthly Premiums for a Non-Smoker (Illustrative)

As you can see, factors like age, gender, cover amount, and policy type all have a significant impact on the final price.

How to Get the Best Policy: A Step-by-Step Guide

Follow these steps to ensure you find the right cover at the best possible price.

1. Assess Your Needs: Before you do anything else, work out exactly what you want the insurance to achieve. Is it to pay off your £60,000 mortgage over the next 12 years? To leave £10,000 for funeral costs? Or to provide your partner with £1,500 a month? Be specific.
2. Gather Your Information: To get accurate quotes, you'll need key information to hand. This includes your GP's details, a list of any medical conditions and medications, and basic lifestyle information (height, weight, alcohol/nicotine use).
3. Understand Your Options: Use this guide to determine which type of policy (Term, Whole of Life, Guaranteed Acceptance) is the best fit for the needs you identified in step one.
4. Compare the Market (The Smart Way): This is the most crucial step. While online comparison sites can give you a rough idea of price, they cannot replicate the expertise of an independent broker. A broker like WeCovr understands the nuances of each insurer's underwriting. We know that Insurer A might be best for someone with well-controlled diabetes, while Insurer B might offer better terms for someone with a family history of heart disease. We do the complex work of matching your specific profile to the right insurer, saving you time, stress, and money.
5. Always Consider a Trust: For almost all personal life insurance policies, it is highly beneficial to write the policy 'in trust'. This is a simple legal arrangement that ensures the policy payout goes directly to your chosen beneficiaries, bypassing your estate. This means the money is paid out much faster (avoiding probate) and is not typically subject to Inheritance Tax. This is a free service that we can help you set up.

Conclusion: Securing Your Peace of Mind

Arranging life insurance in your 60s is a powerful act of financial care for your family. It provides a safety net that can alleviate debt, cover final expenses, and leave a lasting legacy for the people you love most.

While the market can seem complex, the options are broader and more accessible than many people think. Whether you are in perfect health or managing a long-term condition, there is very likely a policy that can meet your needs. The key is not to go it alone. By partnering with an expert broker, you can navigate the market with confidence, compare all your options from leading UK insurers, and secure the right protection for your future and your family's.