So if you’ve made it this far in your search for life insurance for someone over 60, by now you should be well equipped with the knowledge for your purchase. However, you may still be scratching your head about price. Life insurance rates can be confusing. Sometimes it seems like there is no rhyme or reason to the monthly payments, but let us clear up some of the confusion.
There are a lot of people that once they reach 60 or older, they start thinking that life insurance is a waste of money, but that couldn’t be further from the truth. Even as you get close to retirement, life insurance is still one of the most important purchases for your family. There are a lot of people that think that life insurance policies are way too expensive at this age.
Luckily, over 60 life insurance is not as expensive as you think!
If you are in pretty decent health, you’ll be shocked at how affordable you’ll be able to get life insurance, especially if you’re buying term life. The key point to remember, though, is the longer you want to lock in your rates, the higher the premium will rise. If you have certain health conditions and wondering if you can qualify for life insurance with arthritis for example, we can help you obtain the coverage you deserve.
Hopefully you’ve already been to our other posts for more information on being 60 and needing Life Insurance, but if not, check them out:
- Yes, You Can Still Get Term Life Insurance Over 60 Years Old
- Life Insurance Over 60: What Do You Need?
Over 60 Life Insurance
Over 60 life insurance is becoming an increasingly sought out need as more baby boomers are entering their golden years than any point in history. Whether you’re looking for a policy to cover debts, provide an income to replace your pension benefits, pay for last needs, or just leave a legacy, you’ll want to cover your needs, but without spending an arm and a leg.
So what can you do to keep you insurance rates as low as possible? Here are the key factors in determining what your rate will be:
Your age is the first consideration for your premiums. Every year you age, your rates go up. This is obviously not something you can control, unless you buy sooner than later. However, if your age just recently changed, you can sometimes backdate your policy to lock in the previous age. Just realize you’ll have to back pay those months in premiums as well, so make sure it makes sense for your situation. Because age plays such an important factor in your life insurance premiums, you should start looking today rather than waiting! Don’t let another year slip by without getting a policy.
Your health is the next consideration when trying to figure out how much you’ll pay for life insurance. Over 60, it’s assumed your health will begin to decline, but having a health record clear of major issues will make a vast impact on rates. Things like heart attacks, diabetes, or cancer are surely going to influence rates. If you do have one of these pre-existing conditions, don’t worry, you can still can get life insurance coverage. There are several companies that specialize in these high-risk applications. Even if you have a condition as epilepsy and you’re searching for life insurance, we can help!
The amount of insurance you’re looking to buy is, of course, the biggest factor. If you’re looking for $100,000 versus $1,000,000 in coverage, you’ll have a great variance in premiums. But keep this in mind: there are price breaks! Your cost per thousand actually drops at certain points, or there may be more than one company offering insurance at a price break which creates competition for low costs. Breaks are usually at $50,000, $100,000, $250,000, $500,000 and million dollar life insurance policies.
Lastly, the duration you pick is going to play a role in your premiums as well. The longer you want to have a level premium, the more it will cost. You don’t know how long you’re going to live (hopefully longer rather than shorter), but you want to ensure that you have coverage to get you through the end of your dates, but you don’t want to pay through the roof for it.
How much Life Insurance Coverage do you need?
As we mentioned, one of the biggest factors that is going to impact your monthly rates is how large of a policy you purchase. When you’re looking to buy a plan, you need to make sure that you get enough coverage for your family. Not having enough life insurance could be just as bad as not having any at all. There are a couple of different things that you need to consider when you’re deciding how large of a policy that you’re going to buy.
The first factor to consider is your debt. At age 60 and above, you might not have as much debt as you did a decade ago. You might not have a mortgage or car payment. The more debt that you have, the larger policy you’re going to need. One of the goals of these plans is to pay off any debts that you will leave to your family when you pass away. Make sure that your insurance policy is large enough to pay off all of your unpaid expenses.
The other factor to consider is how many of your family members rely on your annual salary. If you were to pass away, would your family because they lost your annual income. Life insurance should be used to give your family time to find a way to replace your income without suffering any financial strain or having to drastically reduce their standard of living. There is no “perfect number” for you life insurance policy, but most insurance experts suggest getting around ten times your annual salary.
Getting the Lowest Rates
Just because your 60 years old (or older) doesn’t mean that you have to pay a fortune for your life insurance coverage. There are a couple of ways to get lower monthly premiums on the perfect policy. The first way is to focus on your health. We mentioned that aside from age, health is one of the biggest contributing factors that influence your rates. If you want to lower your rates, it’s time to improve your health. This means losing some weight, sticking to a diet, and getting regular exercise. Having excess weight or being listed as “obese” could cause your rates to drastically increase, sometimes even double. This is because the more weight you have, the more likely you are to experience a number of severe health complications later in life, which means you pose a bigger risk to the insurance company. But you can still get life insurance if you’re overweight. Let us answer what questions you have concerning this matter.
Speaking of health, it’s time to kick your smoking habit. Being a smoker will double or triple your rates, regardless of what the rest of your health is. You could be in perfect physical condition, but you’re still paying twice as much as everyone else. If you want to save money on your policy, quitting your bad habits could save you hundreds or even thousands of dollars on your coverage.
The best way to ensure that you’re getting the best coverage at the lowest rates is by getting several quotes before you pick a plan. Each company has different qualifications for their rating systems, which means that you could get drastically different rates from two companies for the same policy. You could spend days talking to different agents, or you can let us do all of that work for you. Fill out the quote form on the side and the lowest rates will be sent to you. Easy as that.
There are several different types of life insurance such as declining term life insurance. Each of them has their own advantages and disadvantages that you have to weigh based on your own situation. If you have any questions about life insurance, the various types, or any related questions, contact us today and we will be happy to answer those for you. Life insurance is one of the biggest purchases that you’ll ever make, even at age 60, let us make the process as easy as possible.