Insurance. One of those things we all wish we could just forget about. In later life however, it’s especially important to think about it as it becomes even more of a priority to protect yourself. If you are in your golden years, you will be well aware that it gets more complicated – and potentially more expensive – to get certain kinds of important insurance.
Here at Moneymagpie we want to reassure you that it is still possible to get good deals without paying ridiculous premiums. Read on and find out exactly how.
- Best value life insurance
- Best value travel insurance
- Best value home insurance
- Best value car insurance
- Top tips
Compare prices and get a free quote with our comparison service
1. Life Insurance
Why is it more expensive for older people?
It might sound obvious, but life insurance becomes more costly as you get older because there’s an increased likelihood of a claim being made. It’s much more likely that you’ll claim if you take out a policy at 60 than if you take one out aged 25.
Do you need it?
The chances are you don’t need life insurance if you fit into any of the following categories:
- You don’t have anyone depending on you, or any income you may still earn
- You’re single
- You don’t have children
- You do have children but they are now financially independent
Factors affecting life insurance for the older generation
Having said all that, times are changing:
- In this day and age, more and more women are having children later in life, which means it’s a realistic assumption that at 60 you will still need a decent life policy.
- It’s important to remember that lifestyle factors still play a big part in the price of your premiums, whatever your age. If anything, as you are of the older generation, it’s even more important to be as healthy as possible. It’s never too late to give up smoking for instance…
- Life expectancy is rising. According to the Office of National Statistics if mortality rates remain the same, men aged 65 at present can expect to live another 16.9 years, and women aged 65 a further 19.7 years. Because people are living longer, the cost of life insurance is gradually falling.
So, how do you get the best deal?
As usual, our first suggestion is to shop around. It’s definitely worth spending a bit of time finding the best value policy. Have a look at our insurance comparison pages to compare prices and make sure you’re getting the very best deal. The good news is, there are plenty of policies out there that don’t require you to give any medical details.
With life insurance, those helpful people at Nationwide tell us that it’s worth looking out for products especially designed for the older generation. Here is our the pick of the bunch:
Nationwide Life Cover for the over 55s provided by AXA Sun Life plc
- Premiums start at £7 and you can choose from two cover options – fixed or increasing.
- You can take out a policy at any time between the ages of 55 and 80.
- Guaranteed acceptance for that age group and you don’t have to answer any medical or health questions.
- You pay a premium every month until your 90th birthday (or your death – whichever comes first) and a guaranteed cash sum is paid out in death.
- Funeral Benefit Plan: you can opt to have your cash sum to be paid directly to The Co-operative Funeralcare who will use it towards the cost of your funeral and will contriubte an extra £250 themselves.
Liverpool Victoria 50 Plus plan
- No medical or health questions and guaranteed acceptance for those agd 50-80.
- Cover from just £5 a month.
- Also has a funeral benefit plan giving you an extra 10%.
- Cover continues for free when you reach 90.
- Choose a free gift when you join.
Legal and General Over 50s Life Insurance
- You can choose between a fixed plan, an increasing plan or a funeral plan- whichever best suits your needs.
- Guaranteed acceptance for those aged 50-80 with no medical questions.
- Premiums begin at £5 a month.
- Should you die in the first two years, a sum equal to the premiums paid is issued.
Post Office Over 50s Life Cover provided by Aviva Life & Pensions
- Policies are available from £7 per month
- You can take out the policy any time between the ages of 50 and 80.
- Again, you don’t have to answer any medical questions.
- You pay premiums for a maximum of 20 years.
- You will be eligible for the full sum after the first year and the insurer will pay double to agreed sum if you are killed in an accident 1 year after the policy was purchased.
By now you’ll be getting the idea – policies specifically designed for the older generation have pretty similar characteristics!
All these have premiums starting from about £6 a month, but this is by no means an exhaustive list. Hopefully however, it will give you a good idea of what you can expect.
Then it’s simply a question of choosing the policy that is best suited to you. For more help have a look at our Life insurance article. And now, on to happier things!
2. Travel Insurance
Why is it more expensive for older people?
It’s because you become more susceptible to medical conditions, many of which could make you a higher risk when travelling, and particularly flying.
Nevertheless you’ve got to have it, so you need to make sure you choose a policy best suited to your needs without having to pay too much for unnecessary extras.
Factors affecting travel insurance for the older generation
- The over 60s have more time and money to travel than ever before. Because you’re more active and living longer, travel insurance policies specifically designed for the older age groups are becoming increasingly popular. Of course this is good news; it means there is more competition, so better prices are available.
- When you’re travelling, insurers are aware that you’ll be taking far fewer risks than say, the backpacker who plans to jump out of an aeroplane! This acknowledgement should be reflected in your policy and hopefully help to decrease your costs.
So, how do you get the best deal?
Unfortunately, unlike life insurance, you have to fully declare any existing medical conditions for all travel insurance policies. However, there are some companies out there who won’t increase their premiums when you declare certain pre-existing medical conditions.
Once again, it’s essential to shop around for the best deal. Which? Money reliably informs us that buying your policy online is almost always cheaper, so get checking on our comparison pages.
With the help of some research carried out by our friends at Which?, we’ll now show you a few of the very best deals around. Just make sure you read all the terms and conditions carefully to check the level of cover you are getting with each policy. And bear in mind that these premiums may increase for anyone with pre-existing medical conditions.
Best Single Trip Policies:
Seven days in Europe for anyone up to 75 – £7
The fantastic current deal is five days single trip cover to any European destination from £3.25.
Platinum :17 days in Europe for anyone up to 74 from £4.57 and 24 days worldwide (excluding USA) for anyone up to 74 from £11.38
Seven days in Europe for anyone up to 79 – £25
15 days in Europe for anyone up to 79 – £30
24 days worldwide (excluding USA) for anyone up to 79 – £80
Best Annual Policies:
European trips for anyone up to 74 from £24.56
Worldwide trips for anyone up to 74 from £31.68
European trips for anyone aged up to 64 from £59 and £99 for those aged over 65.
Worldwide trips for anyone aged 65 to 74 from £139 and from £149 for anyone aged 75 to 79.
Good to know: Golfguard does not increase the premiums or the excess of any of their policies for those with high blood pressure, diabetes or a slipped disc.
So, it is possible to get a reasonably priced policy if you’re prepared to spend a bit of time shopping around.
For more information on travel insurance, click here.
3. Home Insurance
Why is it more expensive for older people?
It isn’t! Home insurance usually gets cheaper as you get older – IF you switch to get the discount. Insurers like covering the homes of the over 50’s – older people tend to make fewer claims, and often live in places with lower crime rates.
However, if you loyally renew your home insurance with the same provider year after year, they can take your custom for granted, keeping your rates the same. The over 50’s are the most likely age group to be overpaying on their home insurance.
So, how do you get the best deal?
Make sure you compare a selection of providers. The easiest way to do this is to just enter your requirements once on our home insurance comparison service, run with Confused.com. Other alternatives include Comparethemarket and GoCompare. These sites save you the hassle of checking the websites of countless individual providers, which gets tedious pretty fast!
Having said that, there are some good insurance providers out there that specialise in providing cover for the over-50’s.
We recommend Castle Insurance, who specialise in providing cover for the over 50s. A recent report by Consumer Intelligence revelaed that 10% of customers aged 50 or over could save up to £211 on their home insurance with Castle. You can get a quote in under a minute, so why not give it a go?
4. Car Insurance
Why is it more expensive for older people?
Once again, it’s an increase in the likelihood of making a claim which is responsible for higher premiums.
According to research by the Association of British Insurers, drivers over 70 are 13% more likely to claim than drivers aged between 40 and 50.
Factors affecting car insurance for the older generation
- Sadly, because you are seen as a higher risk, insurance companies will increase premiums as you get older, and once you reach 70, many insurers will simply refuse to offer cover.
- According to the Institute of Advanced Motoring, 8% of the national total of serious accidents involved drivers over the age of 70 . It’s unfortunately not just statistics like this – but the fact that minor acccidents are also higher in the older age groups – which push up premiums.
- Despite all that, some insurers acknowledge that people are living longer, and will reward you for being an older driver by offering extra no-claims discounts.
So, how do you get the best deal?
First of all, have a look at our article on how to cut your car insurance, to decide exactly what kind of cover it is you need.
Then, as usual, shop around. Check out our car insurance comparison pages, and make sure to look at some others as well, like KwikFit and Comparethemarket.
While it’s not essential to have a policy specifically for more mature drivers, there are some out there which offer useful benefits, so might be worth considering.
You should look for an insurer who provides excellent customer service. As an older driver you are of course more vulnerable if you break down on your own, so quick and efficient service is a must.
These are some of the good deals for older drivers that we’ve come across:
- There is 20% discount if you apply online
- Specifically for the over 50s
- Unlimited European driving cover
- Cover for any person with a full driving licence to drive your vehicle in a medical or motoring emergency.
- Up to 75% no claims discount if you’re over 50
- 10% online discount
- European driving cover for 180 days
Liverpool Victoria car insurance
- Specifically for the over 50s
- Online discounts for new customers
- up to 75% no claims discount
- Option to add Road Rescue – priority for vulnerable drivers, assistance with tyre replacement and a relief driver if needed.
Just be aware that some of these options are only available with the comprehensive policy.
Remember
- It doesn’t always follow that travel and car insurance policies specifically designed for the over 60s are the cheapest – so don’t dismiss regular policies without checking them out first.
- There is always a lot of competition between insurers, so (within reason) you can get bartering.
- With travel insurance, you should remember to warn your insurer of any medical condition which arises once your policy has been taken out. If you don’t, your cover may be invalid.
- If you take a long-haul holiday two or three times a year, an annual travel insurance policy is likely to work out cheaper, particularly if it doesn’t increase its premiums for your pre-existing medical condition.
- Be aware that premiums for travel to the USA or Canada are always higher because of the extremely high cost of medical treatment in North America.
- Remember that while it’s always nice to get a bargain, cheapest is not always best, so make sure you check your policy carefully to see if it covers every eventuality.
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