If you haven’t already read our first discussion on life insurance over 60 years old, you can find it here:
Yes, You Can Still Get Term Life Insurance For Over 60 Years Old
We had a lot of questions about our last topic covering term life insurance for over 60 years old in reference to which type of insurance someone really needed. It’s a great question, because there are so many different types of life insurance now, with a lot of different purposes for each.
In a nut shell, as we mentioned in the last post, you’ll want to remember your objective. Do your best to match the policy with the reason you’re buying the life insurance in the first place.
To start, let’s think about how long you need it in the first place. This will help to narrow your search between term and permanent.
Life insurance is one of the most important investments that you could ever make for the future of your family. If you think that you can’t get affordable life insurance because of your age, you couldn’t be further from the truth. Regardless of how old you are, there are several options for quality insurance.
If you would like information about how to purchase life insurance online, we can certainly help!
Life Insurance Over 60: What’s Available
You have two basic options to pick from first before you can really define your search for buying your life insurance policy. The two different kinds are term and permanent, and just the names themselves should give you an idea if it’s a fit or not.
Term Life Insurance
Term life insurance over 60 is still available, but the duration begins to max out at 20 or 25 years. If you think you’ll need a policy longer than 25 years, you’ve still got a couple options, but they are a bit more complex. Let’s start with why you might need a term policy.
Life insurance after 60 is not the same as for someone who is in their twenties or thirties. The stage your at in your life and the purpose for you policy is going to be vastly different. Rather than protecting a newborn child with life insurance, your first home or a first career’s income, you’ll be more likely to be looking to protect things you’ve accumulated, leave a legacy to your heirs or your favorite charity, or even protecting your spouse’s retirement income.
But not everyone gets to their 60th birthday without a dollar of debt, their income guaranteed for life, and their estate already set up. In fact, I’d venture to say it’s a very small percentage.
You may be at this point in your life and still looking to protect the income of your final working years, a new mortgage on a primary or vacation home, or personal loans or debts you’ve accumulated recently. These types of protection lean towards term life insurance. Because they have a defined time period, such as a mortgage for 15 or 30 years, you know the duration you’ll need coverage for.
If you really want to save money on your premiums, match the term policy’s duration with the obligation, and don’t go over. The longer you extend the coverage period, the more expensive your premium is. There’s no reason to have the extra coverage in place for your mortgage when it’s already paid off, because you’ll be paying extra premium for extra coverage as long as you keep it in force.
Permanent Life Insurance
If none of those categories match your profile, and you do have assets you need to protect, a legacy wish you’d like to grant, or you’re simply looking for a way to leverage your money for burial purposes, a term solution is probably not a safe bet for you.
Permanent life insurance over 60 is good for a situation where you know you’ll need cash available for something, but have no idea when it could be whether it’s two years down the road or fifty.
The last thing you want to do is pay for a term policy for 20 years, and then still be alive with an uncovered need going forward. You not only have no coverage now, but you lost all the premiums you’ve paid over the last 20 years, too.
The advantage of a permanent life insurance policy is the ability to pay a smaller amount of money over time in order to have a larger lump sum payout when you pass. This lump sum can be used to pay off debts, cover burial needs, or simply just be gifted. The best part of all, it’s tax free.
Affordable Life Insurance For Over 60
You may have discovered the product you need in order to match your objectives for life insurance coverage, but you might still be wondering if you can find affordable life insurance for over 60 years old. And believe it or not, you can find term life insurance at very competitive rates, especially if you’re still in good health.
One important factor to note is any tobacco usage. If you’re a smoker, then you can expect to pay much higher premiums, regardless of your age. Smokers pose a much greater risk to the insurance company to accept for coverage. That is going to translate into higher monthly rates. In fact, smokers are going to pay at least twice as much for life insurance versus what a non-smoker would be for the same sized plan. If you want to get affordable life insurance as an over 60 applicant, you’ll need to kick those cigarettes to the curb.
If you do happen to have a not so perfect bill of health, all is not lost. You may just have to jump through a lot more hoops in order to find what you need. Using an independent broker is going to be your best shot, as they can search the vast number of insurance companies who are willing to work with you based on your medical history or current health conditions. If you have a condition such as arthritis and want to know if you can qualify for life insurance with arthritis or if you are a senior with health issues and are overweight seeking life insurance coverage, we can answer your questions and help you obtain the coverage you deserve.
They key to getting the most affordable life insurance rates over 60 is to apply sooner than later! After the age of 60, one of the greatest factors in determining your premium amount is going to be your age, but you have to start sooner than later, and lets face it, seeking life insurance coverage at 60 will be easier than waiting to purchase life insurance for an 80 year old! Every year you wait, you not only drastically increase your premiums, but you also begin to limit yourself on the availability of certain types of insurance. For example, if you’re 61 and are looking to get life insurance for 25 years, yet you turn 62, it may suddenly not be available to you without purchasing a universal life insurance type of product, which will be more expensive.
Bear in mind the lower number of years you’re looking to guarantee, the lower your premium will be as well. The insurance company is going to average your age now and at the end of the term duration, and the higher the number, the higher your monthly bill will go. If you desire a certain amount of coverage but can’t afford the 20 or 25 year premium, try scaling back the duration to see if you can find something in budget.
Working With An Independent Insurance Agent
The best way to ensure that you’re getting the lowest premiums for over 60-year-old, is to work with an independent insurance agent. Unlike a traditional agent, independent brokers work with dozens of highly rated companies across the nation.
Every insurance company is different, and all of them are going to look at older applicants differently, which means that you could get drastically varying rates depending on where you get the quote from. It’s important that you get dozens of quotes before you decide which company is going to work best for you. Instead of wasting hours and hours on the phone calling different agents, let one of our experienced independent agents do all of the work for you. We can bring all of the lowest insurance premiums directly to you.
Still have more questions? Continue reading more of this series and find the right life insurance product for you.
Life insurance is one of the most important investments that you can make for your loved ones. Don’t wait any longer to get the insurance coverage that they will need if something tragic were to happen to you. Please contact one of our agents today and we would be happy to answer any questions that you have and connect you with the perfect life insurance plan to meet your needs.