A guide to life insurance for the over 60s

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Even in your 60s, life insurance can offer your loved ones valuable protection if you pass away.

Life insurance might seem like it’s more suited for younger families or those with dependants, but life insurance can actually work for everyone. People take out life insurance policies for a range of reasons.

From your 20s, 30s, and 40s, you’re likely to consider taking out life insurance as a way to offer your family financial support if the unspeakable happens.

As you reach your 50s and 60s, it’s more likely your family has grown up and you might already have grandchildren. As you reach your 50s and 60s, your financial priorities may change. You might still have a mortgage or other commitments, while also thinking about funeral costs, protecting your estate or leaving financial support for loved ones.

In this guide, we’ll give you some of the important things you need to know about taking a life insurance policy out in your 60s and how it works, including how to get a life insurance quote.

What is over 60s life insurance?

Life insurance for the over 60s works in the same way as life insurance for any age, except your priorities might be different now compared to when you were in your 30s. In reality, you can shape a life insurance policy to meet your needs and to address what’s important for you.

Life insurance for over 60s typically revolves around a type of whole of life policy that provide guaranteed acceptance, with no need for medical checks or health questions.

These plans, frequently marketed as “over 50s cover”, typically provide a smaller fixed lump sum, designed to help cover funeral expenses or leave a modest financial gift to loved ones. 

However, for those still with mortgages or teenagers/young adults at home, a term policy typically provides cover until a set date, for example, the end of the mortgage term or children finishing university.

If you want to have cover for the rest of your life for a larger amount, there are whole-of-life policies. These are different from the over 50’s cover mentioned above, as acceptance isn’t guaranteed and takes account of health and lifestyle details before deciding whether to cover you, and how much you’ll need to pay for it.

Please note, LV= no longer offers over 50’s plans or whole of life insurance as a product.

Key considerations for over 60s life insurance

Before choosing a policy, it’s important to think about what you need your life insurance to cover, how long you need it for and what you can comfortably afford.

Here are some key considerations:

Cost of cover

Life insurance premiums can be higher when you take out a policy later in life. The amount you pay can also depend on factors such as your health, lifestyle, the amount of cover you choose and how long you want the policy to last.

Health and medical history

Depending on the type of policy, you may be asked questions about your health and lifestyle when you apply. These details can affect whether you’re accepted and how much your cover costs.

How long you need cover for

Think about how long you want your policy to protect you. For example, you might want cover until a mortgage is repaid, until a dependant becomes financially independent or for the rest of your life.

How much cover you need

The right amount of cover will depend on what you want the payout to help with. This could include an outstanding mortgage or debts, funeral costs, financial support for loved ones or leaving money behind for your family.

Age limits

Providers can have different age limits for taking out life insurance, and these may vary depending on the type of policy. It’s worth checking what options are available to you before applying.

How can over 60s life insurance help you?

There are many reasons why you might consider a life insurance policy in your 60s, and everyone’s circumstances are different. After all, you might have started a family later in life that you want to protect, or you might want to help your beneficiaries out with paying any potential inheritance tax. The reasons are almost endless.

At LV=, we know that everyone has different reasons for taking out a life insurance policy. So, whether you’re 30 or 60, a life insurance policy could meet your needs. These are some reasons we’ve seen for people purchasing a life insurance policy:

What types of life insurance are available for over 60s?

Depending on the provider you choose and life insurance quote you receive, you should still be able to benefit from a range of life insurance policies. Bear in mind that taking out a policy later in life usually means higher premiums. This will also be true if your total amount of cover is a larger sum.

1. Whole of life

As its name suggests, whole of life insurance policies last from the point you purchase it until you die, whatever age that may be. Whilst term life policies might be more suitable for some, whole of life insurance can work for families who need that added level of security for the remainder of your life.

You might consider using whole of life cover to support your family with the expenses of your funeral or to provide them with some financial security after you’re gone. It’s possible to gift some of your life insurance death benefit to grandchildren, other family members or loved ones, leaving them with a piece of your estate. Some people choose to start a family much later in life or have children who require continuous care. Parents in these circumstances might choose a whole of life policy so their children and families can continue to be financially secure when their loved ones pass away. Whatever your reason for taking out life insurance, you’ll want to ensure you’re covered with a total amount that’s right for you.

Whole of life policies are naturally more expensive than term life though. Factor this in alongside the age you purchase your policy and the total amount of cover you require, and you might find yourself paying much higher premiums as a result.

Please note, LV= no longer offers whole of life insurance as a product.

2. Level term cover

Many over 60s select level term cover as a life insurance policy that meets their needs. As you’re nearing retirement age, a fixed term cover will normally be much cheaper than a whole of life policy. At LV= you can select a term that starts anywhere from 5 years up until the day before your 90^th birthday, meaning you could still be covered for up to 30 years if you want to. However, this will depend on your provider. At LV= you can take out cover as long as you’re aged 84 or younger.

Level cover usually costs the same amount every month, meaning you can plan ahead for its continued affordability as you reach retirement age and claim your pension(s). You’ll also be able to decide on a total cover amount based on what you want to be covered for. For example, if you want to leave a small gift behind for your grandchildren or loved ones, you might choose a level cover life insurance policy to do so. The amount you’re covered for won’t change and will be paid out in full if you die before your policy expires. However, bear in mind that with this type of cover, the amount of cover will buy less in the future due to inflation and it doesn’t cover you for the whole of your life, only for a set number of years. If you live past the end date of your policy, you’ll no longer be covered, and at that age you may find it difficult to get a new life insurance policy.

Something to be aware of if you're looking to take out level term insurance - the amount of cover you choose will buy less in the future due to the effect of inflation.

3. Decreasing term cover

Decreasing term life insurance is often a good choice for people who need to pay off a capital and interest repayment mortgage. If you die during the policy term, any outstanding mortgage balance could be transferred over to a loved one. That’s why a decreasing cover life insurance policy can help.

Your initial death benefit should normally reflect the initial amount outstanding on your mortgage. As you pay off your mortgage, your decreasing term amount reduces to reflect this. If you pass away before your policy expires, the remaining amount of your death benefit should cover all, if not most, of your outstanding mortgage amount.

4. Increasing term cover

Another option for the over 60s is an increasing cover life insurance policy. It’s designed to mitigate some of the risk associated with inflation and the increasing cost of living prices.

As long as you keep paying your premiums, the amount you are covered for increases each year (either by a fixed amount or by the rate of inflation), as well as how much you pay for it. This could be an ideal solution if you have a much younger family and want to ensure their financial security, or if you have older dependants that require continual care. You could even take out an increasing cover policy to simply offer your loved ones a little extra when you pass away.

How long does life insurance last?

It can last for any length of time but overall, it depends on the type of policy you take out and whether you’re paying your premiums on time and in full. For example, whole of life insurance lasts from the day you take out the policy until you pass away. With LV=, fixed term policies can last anywhere from five years to 50 years and must expire before your 90^th birthday, however this may differ with each provider.

Can you add critical illness cover to an over 60s life insurance policy?

If you want to protect yourself and your family with critical illness cover, it’s possible to do so in your 60's. After all, you might be in relatively good health yourself but want that extra layer of support in case you suffer a serious or life changing illness. Your provider will also tell you what you’re covered against.

Depending on the provider and the policy, if you’re in your 60’s you might only be eligible to purchase critical illness cover for a short period of time. However, other providers might rule this out completely. At LV=, we offer this additional cover to anyone aged between 17 and 64 years old at the outset of the policy, and once you have it you could be protected up until you turn 80.

If you have started a family later in life, it’s also possible to add children’s critical illness cover at an additional cost. Again, this will depend on your provider and any restrictions they have. In most circumstances, your child could be covered from birth, or the policy start date, until they reach ages between 21-23 years old.

Please note, children’s critical illness cover with LV= lasts until a child turns 23 years old.

What illnesses and conditions are covered?

Adding critical illness cover to your life insurance policy is often a just-in-case precaution. However, if you or your child suddenly suffer a serious or life-changing illness, it offers your family extra support during traumatic times.

Each provider will protect against different illnesses and conditions, but you could expect the following to be covered in most circumstances:

Is life insurance worth it after 60?

Life insurance can still be worth considering after 60, but it depends on your personal circumstances, financial commitments and what you want the policy to help with.

For some people, life insurance after 60 can provide reassurance that loved ones would receive a cash sum when they die. This could help with funeral costs, household bills, outstanding debts or other expenses. It may also be used to leave money behind for a partner, children or grandchildren.

You may want to think about life insurance over 60 if:

• You still have a mortgage, loan or other debts.
• Your partner relies on your income, pension or financial support.
• You want to help cover funeral costs.
• You still have children, grandchildren or other family members who depend on you.
• You want to leave a cash sum behind for loved ones.
• You want extra financial protection alongside your savings or pension.

However, life insurance may not be right for everyone. If your mortgage is paid off, your children are financially independent and you already have enough savings to cover funeral costs or support your loved ones, you may decide you don’t need a new policy.

It’s also important to think about affordability. Life insurance premiums can be higher as you get older, and the cost may depend on the type of policy, the amount of cover, your age, your health and whether medical questions are required.

Before choosing life insurance after 60, it’s worth thinking about what you want the payout to do, how much cover your loved ones may need, and whether the monthly premium is affordable for you in the long term.

Can you have a joint or single life insurance policy in your 60s?

It’s really up to you. If you want some financial security for you or a chosen loved one, you might select a joint life insurance policy. Essentially, these usually only pay out once (whoever dies first) but will offer either yourself or a loved one the death benefit when one of you passes away.

There are many reasons why people in their 60s might do this. You might want to leave something behind or ensure the surviving partner receives a financial income when you’re gone. It can also be faster for your beneficiaries to claim as you’ve already decided to whom your death benefit goes. Once your death benefit has been paid, your partner is no longer covered in the event of their death.

For others, it makes more sense to take out two single life insurance policies. As a couple, you’ll both then have a policy, meaning you’re both covered. When you die, your death benefit is paid out to your partner, and other beneficiaries if chosen. As there is still an active life insurance policy for your partner, they continue to be covered until either they pass away, or their cover expires.

What are the benefits of life insurance in your 60s?

You can still lead a long, happy, and healthy life when you reach your 60s. That’s why ensuring your family’s financial security is still a high priority. Life insurance could be one way to achieve that.

Ease expenses for your loved ones

You’re probably still working in your 60s, meaning your family or partner still relies on you financially to provide for them. Whether you’re a single or joint-person household, you can use your life insurance payout to ease any expenses your loved ones would face in the event of your death.

For example, you can provide enough to help your spouse get by comfortably, or you can leave some to a relative who’s struggling. The choice is yours.

Your family might still rely on your income to pay the bills, the mortgage or other general household expenses. More people are choosing to work well into their 60s now, so it’s more common that this is the case. You might have also decided to start a family later in life and want to support your children as they grow older.

Whatever your reasons, a life insurance policy can offer your family the financial support they need when you’re gone. This should be enough to cover expenses, any loans or mortgage repayments as well as other living costs. It also offers them the security they need when you pass away.

Provide small gifts for your grandchildren

You might already have grandchildren, or perhaps there’s one on the way. Whatever your circumstance, you can use your life insurance policy to gift small amounts of money to your grandchildren or loved ones.

It’s possible to gift* up to £3,000 each year in tax-free gifts to either one beneficiary or split between several people. You can also gift one-off amounts in the event of marriage or registration of a civil partnership of up to £5,000 to a child, £2,500 to a grandchild and £1,000 to any other person. The government has rules on gifting money, so it’s best to keep within the boundaries and check with your financial adviser too.

*Figures are based on our understanding of legislation in place at the time of publication, which can change.

Pay your funeral costs

Funeral costs can vary depending on the type of service, where you live and the arrangements you choose. According to the SunLife 2026 Cost of Dying Report, the average cost of a simple attended funeral is now £3,828. This includes an average of £4,758 for a burial and £3,518 for a cremation.

There may also be additional costs to think about, like flowers, catering, venue hire, transport, a wake or professional fees. These can increase the overall amount your loved ones may need to cover.

It can feel like a burden to leave these costs to your family, which is why some people choose life insurance as a way to help. While you may have already thought about your funeral arrangements or agreed to a payment plan, a life insurance payout could help your loved ones cover any shortfall if you pass away suddenly.

Offset some, or all, inheritance tax

If you’re leaving a sizeable estate to someone other than your spouse or civil partner, they’ll have to pay inheritance tax on anything over £325,000. This includes gifts they’ve received up to seven years before your death.

Depending on your type of life insurance policy (whole or fixed-term) and when you pass away, there’s a chance you could use your life insurance to cover this cost. It’s best to speak to a financial adviser to determine your best course of action.

Support vulnerable loved ones or dependants

It’s not uncommon that people are living well into their 90s, so you might have frail and elderly parents to think about. Your life insurance payout can be used to support their care and boost their income as they grow older. It can offer you some relief that your parents or other elderly relatives are taken care of.

Likewise, you might also have some vulnerable adults or dependants who still rely on you well into their adulthood. Your death benefit can also contribute towards funding their new or continuing needs, such as care or group home costs, as well as any enhanced medical expenses they might need.

Over 50s life insurance vs other types of life insurance for over 60s

If you’re over 60 and thinking about life insurance, there are several types of cover you may come across. These include over 50s life insurance, term life insurance and whole-of-life insurance. They can all provide a cash payout when you die, but eligibility, premiums and how long you’re covered can vary.

The right type of life insurance will depend on what you want the cover to achieve. Over 50s life insurance may appeal if you want a simpler application process and a smaller cash sum towards costs like a funeral. Term life insurance may be more appropriate if you want cover for a specific financial commitment, like a mortgage, while whole-of-life insurance can provide cover that lasts for the rest of your life.

FAQs for over 60s life insurance

Can you gift your life insurance?

A life insurance payout may form part of your estate if the policy is not written in trust. This means it could be included in  inheritance tax calculations, depending on the value of your estate and your personal circumstances.

If you want your life insurance payout to go to specific people, you may wish to consider writing your policy in trust. This can help make it clearer who should receive the payout and may mean it is treated separately from your estate. It’s important to speak to a financial adviser or legal adviser if you’re considering this.

Can life insurance be used to pay inheritance tax?

It’s possible to do this, especially if you are giving a significant portion of your estate to someone who isn’t your spouse or civil partner. A whole of life insurance policy can be used towards inheritance tax, supporting your chosen beneficiary by paying it in full or partly.

Alternatively, you can use life insurance to offset the inheritance tax of a large gift over the amount of £325,000. As this comes under the seven-year rule, the gift receiver will need to pay inheritance tax if you pass away within seven years. You can take out a fixed-term life insurance policy to cover you until the gift has passed the seven-year mark.

If you are considering this you should speak to a financial adviser who can help you understand the best options for you.

Can you have more than one beneficiary?

Yes, you can have more than one beneficiary for your total death benefit. Whom you choose is entirely up to you. Some providers may allow you to select someone who’s not related to you too. Your list of beneficiaries can include, but is not limited to:

• spouse or civil partner,
• children or grandchildren,
• other family members,
• close friends,
• charities of your choosing.

However, you can’t normally pre-select beneficiaries when you take out your policy. The payment is usually paid to the policyowner, and if this is you, it would be included in your estate for tax purposes. Therefore you may wish to consider writing your life insurance into trust to be able to select beneficiaries. It’s important if you are considering this that you speak to a financial adviser or a legal adviser. 

Looking for an over 60s life insurance policy that meets your needs?

Today, LV= has a choice of life insurance products that can cater to your needs. We can arrange level and decreasing Life Insurance for those over 60, with critical illness cover available for purchase until you turn 64. LifeSearch can offer you independent advice on which protection products are right for you, if you need it - request a call back.

Please note – LV= no longer provides an over 50s whole of life insurance product to new customers. If you are an existing customer of our 50 Plus policy, and you need to make a claim, you can find details on our contact us page.