Do I need life insurance in my 60s?
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?
- 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 the 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?
First – Your health status
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.
The not-so-good news is these approvals are more difficult than when you were in perfect health. Be patient, because it might take a little longer to underwrite a policy.
Age limits and maximum age
In your 60’s 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.
What are some reasons why I would need life insurance in my 60s?
Here are a few common reasons to pick up life insurance in your 60s.
To replace 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.
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.
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.
Life insurance avoids probate and the proceeds are usually tax-free to beneficiaries. This makes it the perfect vehicle for inheritance.
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.
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%)
It is best that you secure your coverage for as long as you need it, and most individuals who are in their 60s will only need a 10, 15 or 20-year term life insurance policy.
Permanent Life Insurance Policies
Whole life insurance and guaranteed life insurance build a cash value. They are also permanent policies that you can keep for life, and with that comes added expense. Permanent life insurance policies will usually be more expensive than term life insurance policies.
Permanent life insurance policies serve a need by being there for the funeral and final expenses. These policies are 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 medical evaluation. 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 who will underwrite it with the best health class is what we do best.
Actual rates for life insurance in your 60’s
The below rates are for a healthy female with a 10-year term policy. For males, the rates will be 20% – 30% higher, depending on your age when you apply.[table “Lifeins60sFemale” not found /]
Where do I go from here?
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.
Do not let health problems prevent you from taking advantage of this pivotal moment in your life. We will help you to understand and find a life insurance policy that meets your individual and family needs.
Are you ready to request a free quote?
Please fill out the form to the right or call us now. Today is the day.
Suffering from heart conditions and looking for the right life insurance provider you can trust? Read our honest review of the best life insurances for people with heart problems here.