Life insurance in later life
Taking out a life insurance policy in later life - or 'senior life insurance' - can be a worthwhile consideration, as it could provide some financial support for your family should you pass away. But isn't life insurance designed for thirty-somethings and mid-lifers, not retirees? Not necessarily. In this guide we'll explain some of the benefits (and misconceptions) about life insurance for senior citizens.
Why senior life insurance matters
At a certain stage in life, the nature of your insurance requirements could begin to change. Your children may have flown the nest and you may no longer need a policy that covers your mortgage. Instead, certain expenses you might not have thought about before – such as funeral costs - suddenly become a dawning reality. This is where 'senior life insurance' comes in.
Types of senior life insurance for senior citizens
Not all senior life insurance policies are the same. Choosing the right policy is important, and to help you make an informed decision about the right cover for your individual circumstances, we’ve summarised some of the different types of senior life insurance below.
Over 50s Fixed Life Insurance
Our Over 50s Fixed Life Insurance is for UK residents aged 50 to 80 and can provide your family with a fixed cash sum once you’ve passed away. Your loved ones can use this money to help cover funeral expenses, unpaid bills or even use it for a small gift.
There's no requirement for a medical with this policy so regardless of your health, you won't be referred to a medical professional for any tests, and acceptance is guaranteed. In fact, you won't be asked any questions about your health and it only takes a few minutes to apply. Full cover payable after just one year. Our policy document has more information.
If you still have a mortgage to pay, or have dependants at home, Life Insurance could still be a viable option for you even in later life. People have different circumstances, and just because you're retired doesn't necessarily mean your insurance needs are any less pressing than someone else's.
A Life Insurance policy could pay out a cash sum on your death during the length of the term, which could help pay off your mortgage or help protect your family's lifestyle and everyday living expenses. The amount of cover you choose will stay fixed unless you change your policy.
Your premiums will depend on how much cover you need, how long you need it for and individual circumstances including your age and health. Unlike our Over 50s Fixed Life Insurance, you will need to answer some medical and lifestyle questions and you might be required to have a medical examination. Note that the upper age limits apply to our policies.
What is the maximum age for taking out life insurance?
Technically, you can be covered by a Legal & General life insurance policy until the age of 90, so when we say life insurance is for senior citizens too, we mean it. Over 50s Life Insurnace can be taken out until age 80, with premiums stopping at age 90 and cover lasting for life. You can apply for a Life Insurance policy until the age of 77, or Decreasing Life Insurance until the age of 74.
The exception is if you add Critical Illness Cover to your Life Insurance policy, in which case the maximum age you can apply is 67, and the policy must end before your 75th birthday. Other eligibility criteria apply, so check your Policy Summary and Policy Terms and Conditions for more details.
What deaths are not covered by life insurance?
For a life insurance policy, we don't cover death within the first year as a result of suicide or intentional and serious self-injury, or an event where, in our reasonable opinion, the person insured took their own life. Read more about how we assess life insurance suicide claims.
For our Over 50s Fixed Life Insurance, full cover is payable after one year. If you pass away within the first year, we will refund any premiums paid. However, if you die as a result of an accident then full cover will be paid.
Choosing the best life insurance for seniors
The life insurance policy that turns out to be the right option for you depends on your individual circumstances. Getting cover might be something you've been putting off, but once it's organised you can relax in the knowledge that you could be helping your family by providing some financial support at what can be a difficult time.
By taking out life insurance, even as a senior citizen, you can leave some money for your family when you pass away – whether that be a small gift or a contribution towards funeral expenses with Over 50s Life Insurance, or a more substantial cash sum if you choose to take out a Life Insurance policy and die during the policy term.
Just remember that both these policies are not savings and investment plans and have no cash value unless a valid claim is made.