Do Seniors over 60 need life insurance?
This is a question many of our clients ask themselves. There are several special considerations for people who need life insurance in their 60s. Your best bet is to find an underwriting expert that can not only give you a great quote but also expert guidance to go along with that quote.
Buying life insurance in the autumn of your life is different and unique. If a life insurance agent is giving you the same advice that they give to a 28-year-old in good health, you need a new agent!
We are here to guide and navigate you through the special considerations for people who need and buy life insurance in their 60s. Since this is likely the last life insurance policy you will ever need, it’s imperative that you get it right.
We will cover these questions in detail:
- Why buy life insurance in my 60s?
- Why would I need life insurance in my 60s?
- What type of plans are available?
- How much does life insurance cost in my 60s?
- What are the actual rates for life insurance in my 60s?
- What are the best life insurance companies for seniors over 60?
- Where do I go from here?
WHY BUY LIFE INSURANCE IN MY 60S ?
To put it simply, your 60’s are the last opportunity that you have to get affordable term life insurance. Rates are still relatively low, and 10, 15 and 20-year term options are still open to you.
You still have decades of life to live, and permanent life insurance policies need that time to work properly. This makes universal life insurance more affordable because they still have time to build internal cash value.
Finally, if you already have a term policy, you still have the chance to convert that policy to a permanent policy in your 60’s. Many term policies lose that convertibility feature at age 65 or 70. This may be years before the policy actually ends, so it is important to note.
What are some special considerations for life insurance purchases between the ages of 60 – 69?
You are still healthy in your 60s
Young people in good health have no issue finding affordable life insurance. Once you are older, however, there are often health concerns to deal with.
It’s a fact: Diabetes, heart conditions, high cholesterol, and hypertension most often happen later in life. Just the rewards of growing old, I guess.
The good news is we underwrite these and other health conditions every day. You can still get great life insurance even with some other underlying health issues.
One new consideration is underwriting in the age of Covid-19 and beyond. This disease had higher mortality rates for seniors over the age of 60 versus the general population. The life insurance companies responded by limiting the approvals they would issue to clients aged 60 and older, or underwriters would limit the other health problems they would allow.
So a 62 year old male with no health problems could get life insurance with no issues, however that same male with high blood pressure and chronic asthma may be declined or postponed until the coronavirus outbreak has subsided.
These guidelines are changing all the time, so it is very important that you work with an underwriting expert who has access to multiple options and multiple companies. This gives you the best chance at successfully getting your life insurance approved with a minimum amount of hassle.
Age Limits And Maximum Age
In your 60s certain doors shut on certain life insurance products due to maximum age.
For example, most companies will not issue a 30-year term policy to anyone over the age of 60. 25-year term policies are available until your mid 60’s, and 20-year terms are available up to age 69.
In general, the closer your term policy gets to an attained age of 80, the higher priced that policy will be. From the insurance company’s point of view, if we are trying to create a term policy that goes past the age of 80, the companies will treat it as a permanent policy and charge rates that more closely correspond with permanent rates.
WHAT ARE SOME REASONS WHY I WOULD NEED LIFE INSURANCE IN MY 60S?
Here are a few common reasons our clients pick up life insurance in their 60s. These may resonate with you and your family as well.
Life Insurance Can Replace Your Income
People are working longer and longer, delaying their retirement past the normal age of 65. Many of them are happy to do so. 92% of workers aged 65 and older are “moderately satisfied” or “extremely satisfied” with their jobs.
If you are still working in your 60’s and your household depends on your income, you need life insurance. Term life insurance usually works great for this purpose, and you can choose a term that covers you until you plan to retire.
To Plan For Your Estate
If you died today, would your estate contain any business interests or real estate? If so, you might need life insurance.
Both businesses and real estate have regular expenses and upkeep. It can take months to sell real estate (even in a hot market), and to sell a business it can take years.
Our friends at the life insurance help desk note that life insurance can pay the expenses of the estate “while your family looks for a suitable buyer or business successor.” Since they do not have to rush into a sale, your family can take their time and get top dollar for your business. They can avoid a distressed “fire sale” by using life insurance.
To Leave An Inheritance
If you simply want to leave some money for your children, spouse or charity in a tax-efficient way, life insurance is a great way to do that (maybe the best).
What other inheritance options will pass onto your heirs in a tax free manner, and avoid the medicaid spend down rules in most states? Furthermore, most life insurance companies allow you to dictate how the death benefits are paid out. Would you like your heirs to receive a nice, big check? No problem.
Would you like your gift of love to last even longer, like 10 years, 20 years, or their lifetime? Many insurance companies will provide these options where your benefits can stretch long into the future without the hassle of accountants or complex trusts. It is a neat feature.
Since life insurance avoids the probate courts and the proceeds are usually tax-free to beneficiaries, this makes it the perfect vehicle for inheritance.
Life Insurance Can Help Care For Adult Children With Disabilities
Some children born with disabilities will need a little – or a lot – of financial help in the future. If you currently care for an adult disabled child, who will maintain that care and do those things once you are dead?
Life insurance, along with thorough trust planning can keep the standard of care high for your disabled dependents.
Permanent insurance works well in these situations because your child will have permanent needs. You don’t want to risk outliving a term policy.
Use Life Insurance To Pay Off Significant Debts Like A Mortgage
According to Harvard’s Joint Center for Housing Studies, 1 in 4 households are headed by someone aged 60 or older. By 2035, this number will increase to 1 in 3.
Most of these people aged 60-64 who are homeowners still have a mortgage. This number is only expected to increase as the baby boomers near retirement age. Also, among those over the age of 65 with mortgages, those mortgage balances are higher than ever before.
It is important to consider mortgages and other debt first when we are assessing life insurance needs.
Loss of a spouse is a top reason for foreclosure, so ask yourself. If you died today with a mortgage, would your family be able to keep the family home?
If no, what side of town would they live on? Would they be forced to move in with family? How do you feel about that?
TYPES OF LIFE INSURANCE AVAILABLE IN YOUR 60S
Term Life Insurance Policies
A term life insurance policy will usually come with the lowest rate. However, it is important to know that term life insurance policies do not build cash value, do not pay dividends, and if you surrender the policy, there is no return on your investment.
Term life insurance does offer the benefit of premiums that remain the same throughout the duration of the policy and a death benefit for a specific time period. Premiums increase after the term dramatically, however, the policy is not automatically canceled.
For example, if a 40-year-old male purchases a 20-year term life insurance policy, his premiums will remain the same until he is 60 years old. At the end of the term (year 21), the costs increase substantially (sometimes as much as 300% – 400%).
Life insurance underwriters are also funny about how they view mortality. For most men and women in the United States, they assume we will die somewhere between the ages of 75 and 82 because that is the average. Therefore, if you’re looking for a term life insurance policy in your 60’s that carries you past those ages, oftentimes it will be as expensive as a similar permanent policy.
It is best that you secure your coverage for as long as you need it, and term life insurance coverage is really designed to cover those working years. We find most clients who are in their 60s will only need a 10 or 15-year term life insurance policy to get them to retirement and a little beyond.
Permanent Life Insurance Policies
Whole life insurance and guaranteed universal life insurance build a cash value. They are permanent policies that you can keep for life, and they are the choice of many clients over the age of 60.
Another way to think about these permanent policies is like an endowment. No matter when you die, someone you love will be getting a check. Ergo, permanent life insurance policies will usually be more expensive than term life insurance policies.
Permanent life insurance policies are very often used for funeral, cremation, burial or final expenses. These policies are also helpful in protecting estates – specifically wealthy ones that may be liable for a lot of tax.
They are also great for leaving an inheritance for your children, your college, or your favorite charity. If a spouse or dependent child would lean on you for income for life, then a permanent policy is the one to consider.
Understanding life insurance coverage and needs – which plan should I choose?
Avoid purchasing a long and expensive term life insurance policy when you do not need one. Truthfully most people in their 60s will be fine with a 10 to 15-year term.
If your needs are on a longer horizon than 15 years, your best bet is usually a permanent policy.
HOW MUCH DOES LIFE INSURANCE COST IN YOUR 60S?
Obtaining life insurance in your 60s is not as simple as it was when you were young. There will be health concerns to deal with and often a simple medical evaluation where the nurse will come to your house, measure your height and weight, and ask you some questions.
There are some options available for no-exam life insurance, however, your health will still play a major role in the policy’s approval and rate.
Your Life Insurance Medical Evaluation
Common high-risk conditions like high blood pressure, high cholesterol, heart arrhythmias or a heart attack may risk an applicant’s eligibility. Individuals who have smoked or currently smoke cigarettes also find it difficult to get affordable coverage.
There is hope though! Many life insurance companies specialize in ailment-specific insurance coverage in order to cover more people. This means life insurance company “A” might be great for heart conditions, and insurance company “B” might be favorable to diabetics.
Matching your case with the company that will underwrite it with the best health class is what we do best.
ACTUAL RATES FOR LIFE INSURANCE IN YOUR 60s
We run quotes every single day. And it’s always surprising which company prices the best in this age bracket. It changes, and the changes can be dramatic.
Who will be the lowest priced company when you apply? The only way to truly know is to fill out a quote.
Best Life Insurance Companies for Seniors over 60
In no particular order, we really like:
Protective Life – Best for policies over $100,000 where an exam will be required. In our underwriting tests, Protective is consistently great on price, and the fastest on turn around out of underwriting. Protective in general is a solid all-around company and a great value.
Mutual of Omaha – Best for permanent policies with no exam. Mutual of Omaha has a permanent life portfolio that serves most seniors in their 60’s if they don’t need a large policy.
Lincoln Financial Group – Best for larger policy sizes, business owners, and high net worth individuals. The product portfolio at Lincoln lends itself well to business owners over the age of 60 and others with a high income level or a high net worth.
Prudential – Best for policy sizes over $100,000 and people with serious health issues.
WHERE DO YOU GO FROM HERE?
Life Insurance is the only product we know of that is always on sale. You will never be as young as you are today, so you will never pay lower rates on life insurance than you can today.
If you want to buy life insurance in your 60s, we are available to help you make this important decision. We will shop your case to over 40 top-rated life insurance companies. More choice means you pay less!
Finding the best insurance company for your health class means you get you the best life insurance rates in the market.
Don’t let health problems prevent you from taking advantage of this pivotal moment in your life. With Heart Life Insurance you have found the Internet’s leading underwriting experts who advocate on your behalf. We will help you to understand and find a life insurance policy that meets your individual goals and family needs, AND we will do this at great rates.
Please fill out the form to the right or call us now. Today is the day. This decision is too important for your family to put it off for another minute. Pick up the phone for a friendly conversation, or fill out the quote request to get the process started today.