How Much Life Insurance Is Needed At 60 And Over?
As insurance specialists, we know that determining the right amount of coverage at age sixty can be tricky.
You need to balance the cost of your insurance with the protection it provides for your loved ones while ensuring the premiums are affordable.
Our advice would be to sit down and list every item or expense you’d want your insurance to cover if you were to pass away, including any outstanding mortgage balances and debts and living costs for a partner, spouse, or children.
You should also check the value of your pension or retirement savings.
This is a great starting point because once you have a solid idea of the value of life insurance you want, you’ll be able to compare the products that are best suited to you, such as life insurance for seniors over sixty with no medical exam policies.
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Calculating Your Life Insurance Needs After Sixty
Of course, estimating the amount of life insurance you need isn’t always simple, and there can be considerable variations in the premiums you’re quoted for the same amount of coverage.
That is because:
- Some life insurance products are specifically designed for certain applicants, such as policies for adults in retirement or plans created for joint policyholders.
- Life insurance companies offering products designed for your age group or demographic tend to be more competitive regarding premiums. In contrast, you may find that others cannot provide the coverage you need because you don’t meet their eligibility criteria.
- Insurance products aren’t created equal, and you may need to look at the pros and cons of time-limited term policies with a finite expiry date and whole-of-life products that remain valid until you pass away.
It’s hard to get a clear idea of cost comparisons without having a rough estimate of the coverage you need. We suggest working out an approximate life insurance value before you compare policies.
However, the table below presents the four primary types of policies and the typical monthly premiums for people between the ages of 60 and 69.
| Policy Type And Term | Sum Assured | Typical Monthly Premium |
|---|---|---|
| Decreasing term (Over 10 Years) | £55,000 | £15.97 |
| Level term (Over 10 Years) | £55,000 | £28.16 |
| Whole of life (Until You Die) | £40,000 | £91.05 |
| Over 50s plan (Until You Die) | £5,000 | £26.21 |
How Much Should I Expect to Pay for Life Insurance Over the Age of Sixty?
Many of the most competitive life insurance policies suited to those in their sixties offer guaranteed acceptance, so you won’t usually need to worry about a medical exam.
However, the actual cost of your premiums will always depend on a few additional variables, including:
- The amount of coverage you need
- Your age at the point of application
- Pre-existing medical conditions
- Whether you are retired, employed, or a business owner
- The type of life insurance product and features you’d like
How much is a million-pound life insurance policy for a sixty-year-old? Typical premiums for a £1 million whole-of-life policy for a UK-based, non-smoker at age sixty can cost as much as £400 a month. However, this is very indicative and could change significantly based on the factors we’ve listed above.
Likewise, you could opt for a smaller life insurance value, a term product rather than whole-of-life, or a product that combines critical illness and life insurance cover, all of which will alter the premiums you’re quoted.
How to Find the Best Life Insurance Plans and Costs for Adults Over Sixty
We recognise that the diversity of products, features, values, and premiums makes life insurance decisions somewhat difficult, not least if you’re a mature adult who has found that some policies aren’t available past a certain age.
At Insurance Hero, our quotation service is free, fast, secure, and 100% confidential, providing you with a quick overview of the best-priced insurance products suited to your needs and with the value of life insurance you require.
Just answer a few questions, and we’ll get to work putting together insights into the plans and providers that best align with your priorities.
Research Sources:
- https://www.ageuk.org.uk/siteassets/documents/reports-and-publications/reports-and-briefings/money-matters/fsc_ageuk_financial_resilience_in_later_life.pdf
- https://www.canadalife.co.uk/ican-academy/news/over-two-thirds-of-uk-adults-believe-retiring-in-our-60s-will-become-a-thing-of-the-past/
Steve Case is a seasoned professional in the UK financial services and insurance industry, with over twenty years of experience. At Insurance Hero, Steve is known for his ability to simplify complex insurance topics, making them accessible to a broad audience. His focus on clear, practical advice and customer service excellence has established him as a respected leader in the field.
