Are you of a certain age and wondering how old is too old for life insurance? Most of us don’t like to think about when we will no longer be around. Making plans for when you die can feel like tempting fate. But no matter what your age, making sure you have the right cover is important.
Let’s break down whether it’s possible to be too old and what it means to take out life insurance at an older age.
Can you be too old for life insurance?
You are never too old to think about your insurance needs. It’s just a case of how much it will cost – and why you might want it – that can change.
The upper limit varies depending on the provider. But as a general rule of thumb, you can find cover up to 85 years old. Some specialist insurers even insure up to 90 years old.
However, expect it to be more expensive. Insurance is based on assessing risk, so therefore the older you are, the higher the risk is that you might pass away.
Why do I need life cover if I am older?
Your reasons for wanting cover are likely to change the older you get. It will no longer be about covering a mortgage or making sure that young children are provided for if something was to happen to you.
Instead, life insurance when you are older is more about covering your funeral costs, providing your family with a legacy payment or covering any potential inheritance tax liabilities.
You are never too old for life insurance as there is always some benefit to having cover.
What type do I need?
Just as the reasons for wanting life insurance change the older you get, so does the type of insurance you need.
What you will probably find is that you will need to look at over-50s life insurance policies. These are policies for those who typically have grown-up children and have cleared or significantly reduced their mortgage balance.
The bonus with these types of policies is that they tend not to require a medical and offer guaranteed acceptance.
If you are looking for life insurance at an older age, then you may also want to consider getting a whole of life insurance policy rather than a fixed-term one. The latter is only in place for a set period of time. There is no way of knowing when a claim might need to be made once you reach a certain age. It may be appropriate to have a more open-ended policy.
Begin your journey to financial freedom today – try our new Hero’s Journey tool!
MyWalletHero is here to help you learn about taking control of your money, whether that’s paying off debt, working towards a short-term money goal, or investing for your future.
Our latest tool can help you understand the next steps on your journey – simply choose a goal that best describes your current interests to get started.
What’s the average cost of life insurance if you are older?
Obviously, life insurance policies are tailored to the individual. One thing is for certain: the older you are, the more expensive your life insurance policy is likely to be.
Typically, if you are 50 to 59 years old you can expect to pay around £36 a month. If you are over 60 then this goes up to just under £40 a month.
As with any type of insurance, the best thing to do is to compare life insurance quotes. Just remember to keep your information consistent with each quote so that you can get a like-for-like comparison.
Some offers on MyWalletHero are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.