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Are you too old to buy life insurance?
Most insurers set the maximum age to take out term life insurance between 80 and 85. But is it worth it?
Matthew is an award-winning journalist, specialising in savings, tax and insurance.
Inheritance tax bills are rising, with receipts set to hit a record £8.7bn this year, according to the Office for Budget Responsibility. Life insurance is one way to help your loved ones cover a potential bill.
You can still get life insurance when you’re over 60, but all policies have an age limit for taking out new cover. That varies by insurer, but some allow people as old as 89 to buy cover.
However, premiums are higher for customers over 50, and there is a risk you could end up paying more in premiums than the policy pays out.
Here, we explain why age matters when it comes to life insurance and weigh up the alternatives.
Why take out life insurance?
Life insurance works by paying your loved ones a lump sum of money if you die while the policy is still active. There are two main types of cover to choose from:
- Whole-of-life cover, which pays out whenever you die, as long as you keep paying premiums. Some policies have a premium-paying term that ends at a set age, often around 90.
- Term insurance, which covers you for a set number of years and only pays out if you die during that period.
Payouts are tax-free and can be used for anything, but are often used to replace lost income or clear big debts like a mortgage.
They can also be written in trust, so your family gets the money faster without waiting for probate, and the payout usually won’t form part of your estate for inheritance tax (IHT) purposes.
The latest OBR report shows that the Treasury is expected to take £8.7bn in IHT this financial year, rising to £15bn by 2030-31. With most unused pensions due to be brought into the IHT net from April 2027, a growing number of affected people are exploring life cover as part of wider estate planning.
- Find out more: Best life insurance 2026
What age can you buy life insurance?
Insurers usually require policyholders to be at least 18, but the cut-off age for taking out cover differs between providers. LifeSearch, a life insurance broker, told Which? that the average age limit to buy a policy in the UK is between 80 and 85.
This table shows the maximum age to purchase a level term policy from seven of the UK's biggest life insurance providers. It also shows the maximum plan age – this is when the policy expires.
Results are ordered by age limit for buying cover – oldest to youngest.
| Provider | Maximum age to purchase a policy | Maximum plan age |
|---|---|---|
| Royal London | 89* | 90 |
| LV | 84 | 89 |
| Zurich | 83 | 89 |
| Scottish Widows | 79** | 89 |
| Aviva | 77 | 90 |
| L&G | 77 | 90 |
| Vitality | 74 | 90 |
Sourced online on 20 March 2026. *The maximum age to purchase a policy with Royal London is 89 if bought through an adviser, but is 70 if you buy direct. **The maximum age to purchase a policy with Scottish Widows is 79 if bought over the phone or 59 if purchased online.
Is it worth the extra cost?
When it comes to buying life insurance, age matters. The older you get, the higher the monthly premiums you're likely to pay. That's because younger people tend to be healthier, have fewer medical issues and are less likely to die during their term.
Work, hobbies, family history and whether you're a smoker will also all be assessed and will affect what you pay.
For example, a £300,000 level term policy for a 50-year-old non-smoker costs between £569.76 annually (Aviva) and £657.84 (Legal & General). That’s according to LifeSearch data sourced in December 2025.
So if you are older and considering purchasing cover, first consider whether you really need it. If you've paid off your mortgage already and don't have loved ones who are financially dependent on you, life insurance might not be worth the price.
However, older people shouldn’t necessarily be put off taking out life insurance. With many couples having children in their 40s and people approaching retirement age still paying off mortgages, life insurance makes perfect sense for over-50s.
Over-50s life insurance is one option for older customers. But because this type of cover can have lower payouts relative to premiums, it's important to understand how it differs from standard life insurance, which is also available to those aged 50 and over.
- Find out more: Best over-50s life insurance – is it worth getting?
Other ways to plan for IHT tax and end-of-life costs
If life insurance isn’t right for you, there are other ways to leave money behind or reduce the amount of inheritance tax your loved ones may have to pay.
1. Open a savings account
Opening a savings account won’t reduce your inheritance tax bill, but it can help build up funds that are passed on to your loved ones.
Money in savings accounts and cash Isas, like other assets, can be passed on to a spouse, civil partner or anybody named as a beneficiary once your estate has been administered. The executor of your will is responsible for closing accounts and distributing the funds.
In most cases, the process is straightforward. The executor contacts the bank or building society, which will release the funds. If your money is in a fixed-term account that hasn’t matured, it can still be closed immediately, with interest paid up to the date of death.
Many banks and building societies are signed up to the free Death Notification Service, so the executor can notify several institutions at the same time.
Although rates have been steadily falling for a couple of years now, you can still find deals of up to 5% AER. This table shows the top rates for fixed-term and instant-access cash Isas and savings accounts. Results are ordered by term and exclude products that impose restrictions on opening or withdrawals.
| Instant access | Cahoot | 5% (a) | n/a | £1 | Internet | Monthly, yearly |
| Instant access cash Isa | Plum | 4.66% | 73% | £1 | Mobile app | Monthly |
| One-year fixed rate | MBNA | 4.36% | n/a | £1,000 | Internet | On maturity |
| One-year fixed rate cash Isa | Investec Save | 4.3% | n/a | £1,000 | Internet | On maturity |
| Two-year fixed rate | Kent Reliance | 4.35% | 74% | £1,000 | Internet | Monthly, yearly |
| Two-year fixed rate cash Isa | Tandem Bank | 4.31% | n/a | £0 | Mobile app | Monthly |
| Three-year fixed rate | RCI Bank UK (Raisin exclusive*) | 4.35% | n/a | £1,000 | Internet, mobile app | On maturity (compounded annually) |
| Three-year fixed rate cash Isa | Castle Trust Bank | 4.16% | n/a | £1,000 | Internet, mobile app | On maturity |
| Four-year fixed rate | Cynergy Bank | 4.25% | n/a | £1,000 | Internet | Yearly |
| Four-year fixed rate cash Isa | UBL UK | 3.91% | n/a | £2,000 | Branch, internet, mobile app, postal | Monthly, quarterly, anniversary, on maturity |
| Five-year fixed rate | Atom Bank | 4.45% | 76% | £50 | Mobile app | Monthly, yearly |
| Five-year fixed rate cash Isa | Tandem Bank | 4.35% | n/a | £0 | Mobile app | Monthly |
Table notes: rates sourced from Moneyfacts on 20 March 2026. Provider customer score is based on savers' overall satisfaction with the brand and how likely they are to recommend it to others. n/a means sample size was too small for us to generate a provider score. (a) 5% AER on balances up to £3,000 for 12 months, after which funds transfer to a Cahoot Savings Account at 1%.
- Find out more: Best savings accounts and bond rates 2026
2. Prepaid funeral plans
If you specifically want to cover funeral expenses, a regulated prepaid funeral plan may be a better choice. These let you pay upfront or in instalments, and the cost of your funeral is fixed at today’s prices, protecting against inflation.
Since July 2022, the Financial Conduct Authority (FCA) has regulated the funeral plan sector. You'll also be covered by the Financial Services Compensation Scheme (FSCS) if your provider goes bust, up to £120,000. You can escalate complaints about funeral plan providers to the Financial Ombudsman Service.
- Find out more: Prepaid funeral plans
3. Make financial gifts
Every tax year, you can give away up to £3,000 in total – in cash or gifts – without any IHT to worry about. This is the annual gifting allowance. You can give this entire amount to one person or divide it among several different people.
This can reduce the value of your estate over time, meaning less inheritance tax may be due when you die.
Don’t worry if you don’t make full use of your allowance over the year, as anything unused can be rolled over into the new tax year – but only for one year. This means you could give up to £6,000 across two tax years without your loved ones facing an IHT charge.
However, the rules can be complicated, and there are various exemptions to watch out for. Read our guide to gifting and IHT to find out more.
