Life insurance for people over 65

Expenses life insurance for people over 65 covers

Your life insurance needs change as you enter different life stages, making it important to review your policy each year. This will ensure that you don’t have too much or too little coverage in place.

While everyone’s needs may be different, some typical expenses that life insurance can cover for people 65 and over include the following:

• Outstanding debt. There may be money owed on your mortgage or other personal debts that have still not been paid.
• Partner’s expenses. You can provide living expenses for your loved ones after you have died.
• Funeral Expenses. Many policies will offer final expense insurance to help cover the costs of a funeral, reducing any financial burdens on your family.
• Leaving a legacy. Depending on your policy, you can leave behind a tax-free gift to loved ones or a significant financial payout to a partner.

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Term life insurance for people over 65

Perhaps you’re worried about certain debts or you want to get some investments in order? If so, term life insurance might be suited to you and your needs. Term life insurance is ideal if you only want protection for the next 10 to 15 years or so.

Here are the key features of a term life deal:

• Terminal illness cover. Included with many policies, this provides you with some of your life insurance cash early if you’ve been diagnosed with a terminal illness.
• Shorter policies. You can get policies for as little as 5 or 10 years if you need a short-term financial safety net.
• Leave an inheritance. You can choose how much you want the policy to pay out by paying premiums that are in line with the amount of money you want to leave behind.
• Age limits. Policies like these often have cut-off points, such as 70 years of age. So if you’re in your mid to late 60s, now is the time to sign up.
• Cover for immediate expenses. While it’s not fun to think about, funerals can be incredibly expensive. Life insurance can help your family cover these costs.

Before you commit to buying a term life insurance policy, you should consider whether you would be financially stable if you outlived your policy. For example, if your partner will be left with considerable debt even after your policy ends, maybe you should opt for a whole life insurance deal instead.

Whole life insurance for people over 65

Whole life insurance policies will cover you for more than just a term. As the name suggests, they’re for life. So if you continue paying your premiums until you die, you know the insurer will pay out to your beneficiaries.

Once you’re in your middle-to-late years, these whole life deals are branded as “over-50s policies.” They can be useful to pay for funeral costs, to cover your debts like mortgages or to leave behind a gift to your loved ones.

Here are some key features of an over-50s deal:

• No medical screening. You won’t have to answer any questions about your current or past health, so if you’re eligible to apply, you’ll get cover.
• Delayed cover. These policies typically won’t give a full payout if you die from an illness within the first year or two, so they’re not ideal for people with a short life expectancy.
• Lower payouts. Over-50s deals tend to have comparatively small payout limits, so you won’t be able to leave behind a lasting legacy.

Critical illness for people over 65

Critical illness cover is a type of policy that pays out a tax-free lump-sum if you are diagnosed with a serious illness or condition. Often, you have to buy critical illness cover as an add-on to life insurance, although there are some standalone deals out there.

Unfortunately, it’s a fact of life that the older we get, the more likely we are to fall sick. So critical illness cover could offer you a much needed financial buffer.

Which conditions are covered will depend on the provider, with some insurers protecting customers for more than 60 medical issues. Generally, a policy will cover heart attack, stroke, coma, out-of-hospital cardiac arrest and loss of independence.

Tips to compare life insurance quotes for people over 65

So you should now have a fairly clear idea about the types of policy on offer and their key features and benefits. Here are a few other tips to use when comparing quotes for life insurance policies.

• Payout amount. Think about your financial needs then look into the maximum amount of money the insurer will provide.
• Value for money. Consider whether the amount you’ll pay in premiums is worth the policy value. Can you get rid of any expensive extras you don’t want or need?
• Waiting period. How long will your beneficiaries have to wait for the payout after making the claim?
• Age limits. Is there a cut-off age to the policy you’re looking at?
• Cooling-off period. How long do you have before you can no longer cancel the policy and get a refund for any premiums paid?
• Claims process. Most insurance providers will have a similar claims process, but it’s worth making sure they will cater to your beneficiaries needs. Do they only do claims online or through the post, for instance?

These are a few useful tips to use when comparing life insurance policies. However, you’ll need to do some digging once you’ve whittled your decision down to a few deals you like. Look at the small print in their policy documents and see what exclusions the insurer has before applying for good.