For most people, their overall financial plan is not considered to be complete without the addition of life insurance. That is because this important coverage will be there to protect other assets from being depleted in case of the unexpected.
While many people may feel that life insurance coverage is only important when someone is young and has dependent children to take care of, the reality is that even when you are in your 60s – and older – there are needs that life insurance coverage can solve. In fact, without having life insurance protection, even when you are 62 and over, you could be at risk of leaving those you care about at a great financial danger. If you have health issues that you’re concerned about but you still want affordable high risk life insurance, we can answer questions and help you get the coverage you deserve.
Do You Need Life Insurance at Age 62?
There is a long list of reasons why someone who is age 62 and over would need to consider having life insurance protection – even if their dependent children are now independent adults. Just some of these reasons can include:
- Income Replacement – While life insurance is often used for the replacement of income when the breadwinner of a young family passes away, for those who are age 62 and older, this coverage can also be used as a form of income replacement – but this time it is the replacement of retirement income sources. For instance, in many cases, if you and your spouse or partner are depending on various sources for retirement income such as pension(s) and Social Security, at the death of one of the partners, some or all of those income sources could be reduced, or even eliminated altogether. This can result in the surviving partner quickly facing a drastic financial hardship. By having a life insurance policy in place, however, the proceeds from that plan can be used for replacing the lost income. This alone can provide a great deal of peace of mind in knowing that, even if the unthinkable were to occur, the survivor will be able to go on paying his or her living expenses.
- Funeral / Final Expenses – Those who are 62 and over must also consider the reality of funeral and other final expenses. These can include the cost of a person’s actual memorial service, as well as a long list of other items, including flowers, transportation, and announcement cards, and even items like a burial plot and a headstone. Altogether, final expenses today can run, on average, in the range of $10,000. In many instances, an individual may also have uninsured medical and / or hospice costs as well. Without a life insurance policy to pay off these bills, how would your loved ones deal with the expenses?
- Debt Payoff – Regardless of your age – whether it is 32 or 62 – people today are taking on much more debt than they did in years past. And, should the unthinkable occur, having a life insurance policy can be a solution for quickly and easily paying it off, rather than putting loved ones into deep financial hardship. For example, many people purchase a life insurance policy at the time they take on a mortgage. That way, those who are left behind in case of the unexpected can pay off that debt and remain living in the home, rather than having to move out. Unlike many years ago, those who are in their 60s are taking on more debt later in life. This is due in large part to longer life expectancies today. With that in mind, having the protection of life insurance in your 60s should be considered if you are borrowing for big-ticket items such as a home mortgage.
- Estate Tax Payoff – If your loved ones may be forced to pay estate taxes, then you should also consider the purchase – or the addition – of life insurance coverage. Estate taxes can erode more than 50% of your total assets, depending on the situation. So, for those who would rather see assets go to those they care about, rather than to Uncle Sam, setting up a good, solid estate plan using life insurance should be considered.
- Charity – There are also many people who are in their 60 that have certain charities that are dear to them. And, while you may be able to make a sizeable donation during your lifetime, doing so through the proceeds of a life insurance policy can often be even more beneficial. For example, for literally pennies on the dollar, your donation can be increased exponentially if you name a charity as the beneficiary of the life insurance policy. A charity, as a tax-exempt organization, will also be able to use 100% of the policy’s proceeds.
Types of Life Insurance Available for Those Age 62 and Over
For those who are age 62 and over, there are several different choices when it comes to life insurance protection. These include both term and permanent coverage. There is also something called declining term life insurance. And, for those who are in good health, the coverage can also be quite affordable. But if you have health conditions and you’re searching for life insurance with arthritis or life insurance with epilepsy for example, don’t be discouraged. Let us help you find the coverage you and your family deserve.
Term life insurance will provide you with death benefit protection only. There is no cash value, or savings build up with term life insurance. But because of that, the premium cost is typically much less than that of a comparable permanent life insurance policy.
These plans are sold for a certain amount of time – or “term” – such as 10, 15, 20, 25, or 30 years. Therefore, after the policy’s time limit has elapsed, the insured may be required to purchase a new life insurance policy if he or she wants to remain insured. In some cases, however, a term life insurance policy may allow an individual to “convert” over to a permanent policy. In doing so, it may not be required that the insured provide proof of insurability and / or take a medical examination.
With a permanent life insurance policy, there is death benefit protection as well as cash value build up. Unlike term life insurance coverage, the coverage is ongoing, and it has no set time limit – provided that the premium continues to be paid.
The cash value is allowed to grow on a tax-deferred basis, meaning that the gain is not taxed unless or until the policyholder decides to withdraw it. Because of the tax advantages, the cash can grow exponentially over time.
How Much Does Life Insurance for People Who Are 62 and Over Cost?
For those who are 62, the premium cost of life insurance can vary, based on several different factors. Certainly, the type and the amount of the coverage are key, as is the gender and the overall health of the applicant.
The insurance company through which you are purchasing the coverage can also make a difference. This is because, even considering the very same factors, a life insurance policy for a 62-year-old can have a significantly different premium price from one insurer to another. For this reason, it is important that you shop and compare before you make your final purchase.
What If You Can’t Qualify?
If you cannot qualify for a medically underwritten life insurance policy, there are other options that you can try for obtaining the life insurance coverage that you need. One is to apply for a no medical exam life insurance plan.
Just as the name suggests, a no medical exam life insurance policy does not require an applicant to undergo a medical examination as a part of the application process. Therefore, those who may have an adverse health issue may have an easier time qualifying for the life insurance coverage that they need. And, although the premium may be higher for this type of coverage, it will provide you with an option for the insurance protection that you need.
There are guaranteed issue life insurance policies which are, as the name implies, guaranteed to be issued as long as you answer a few very, very basic questions. They might not even require an exam of any type, which could be very advantageous if you have health concerns.
Where to Find the Best Rates on Life Insurance for People Who Are 62?
In seeking the best rates on life insurance for people who are 62, it is typically good to go through a company or an agency that has access to more than just one life insurance carrier. This way, you will be able directly to compare policies, benefits, and premium quotes – and from there, you can then decide which will be the best for you and your specific needs.
If you are 62 and over, and you are ready to move forward with the purchase of life insurance coverage, we can help. We work with many of the top life insurers in the industry today, and we can assist you with obtaining all of the important details that you require. In order to get the process started, all you have to do is just simply fill out the form on this page.
Should you still have any additional questions regarding what type of coverage is available for those who are 62 and over – or even if you just have a quick question about life insurance in general – please feel free to contact us. We can be reached at 800-716-5001. Our experts are here to walk you through the process. So, contact us today – we’re here to help.