Rates last updated: 08 December 2019
Life cover for the over 65’s should be compared online as it is probably cheaper than buying from your bank or by responding to a TV commercial. A comparison service will let you compare the UK’s leading insurance companies in the comfort of your own home without any pressure to buy.
Most banks and building societies only offer the products of one insurance company as they receive higher commission payments for selecting to sell just one insurance company’s products. This might not matter to you as it’s just the value for money of the end product that’s really important however its more likely you’ll find the cheapest if you use a company that isn’t tied and does have the whole market to choose from.
Here is a table of typical rates for life insurance at age 65 for different amounts and terms of cover. In the end there’s no substitute for getting a personalised quote from a leading life insurance comparison
Typical Life Insurance Premiums At Age 65
|5 Years||10 Years||15 Years||20 Years||25 Years||Whole Of Life|
Last Updated: 08 December 2019 (Source: PayingTooMuch.com)
How Long Do You Need The Cover?
A term life insurance only provides the life cover for a set number of years from outset. If you haven’t died within this term than nothing is paid back. Therefore the longer the term the more likely there is to be a death and a claim paid. Furthermore the longer the term the older you’re getting which increases the likelihood of a claim still further. You can see these increases in premium with term illustrated quite well in the table above.
Whole of life assurance lasts for the rest of your life; the term cannot run out before you die (provided you keep up the premium payments on time). Being really detailed that’s why it’s correctly referred to as an ‘assurance’ as you are assured a pay-out no matter how long you live.
Is A Whole Life Policy Worth The Extra Premiums?
Most customers make decisions based upon their emotions rather than pure economics. The pure economics of a whole of life assurance are that it’s likely that you’ll be better off as you will definitely get a pay-out eventually, even if you live a long time whereas on a term insurance most customers outlive the term and don’t receive a penny, (which they regard as good news)!
In the end it’s up to you and what you want the cover to do. If you need short term cover for a mortgage or young children (that eventually grow up and leave home), then term insurance is good, but if you want to pay your funeral, or provide for your partner after you have passed away then it’s important the cover doesn’t stop before death then it’s a whole of life policy.