Life insurance is one of the best purchases that you can ever make for the future of your loved ones. It’s one of the only ways that you can ensure that your family has the money that they need, regardless of what happens to you. Nobody wants to think about his or her own death, but not planning for the inevitable is one of the worst mistakes that you can make it.
Over age 60 and looking for an affordable term life insurance policy? Believe it or not, it exists.
As the population lives longer and longer, getting life insurance for over 60 years old has actually become easier to obtain, and your wallet might also be pleased, too.
When you’re shopping for life insurance coverage, there are dozens of different factors that the insurance company is going to look at. The biggest factors that they are going to review is your age. The older that you are, the more that you’re going to pay for insurance coverage, but that doesn’t mean that you have to pay for a plan that’s going to break your bank every month. There are several options for affordable coverage that you can choose from.
Life Insurance For Over 60 Years Old
You’re at the cusp, if not already in, your golden years and you’ve got plenty of life to enjoy once you’ve hit 60 years old, but you may still have a few things you’d like to have financially covered, in the event you passed prematurely.
You might need life insurance coverage for:
- A mortgage you haven’t quite paid off yet
- Income replacement for your last few working years
- Optimizing retirement income
- A legacy for your grandchildren
- Other debt obligations not fully paid
Just remember, a term life insurance policy is for a certain time period, from 5 to 30 years, so your coverage should match your needs not only in value, but in duration as well. If you were just looking to cover an income replacement for your last final working years, buying a 30 year term life insurance policy will not only exceed your needs, but you’ll pay much too high of a premium.
On the other hand, if you just bought a new home to live out your retirement years in, and you chose a 30 year mortgage for the lowest monthly payment option, you may want to purchase a long duration term policy to ensure your spouse will be able to stay should you pass away before it’s paid in full.
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Affordable Life Insurance For Over 60: Retirees and Pre-Retirees
You may or may not have already heard of pension maximization with life insurance, but 60 years of age quickly becomes a tipping point for whether or not this type of financial strategy will work for you.
Because you have to qualify for life insurance based on your age and health, your increasing age and possible declining health could create premiums too large to really make it effective over the long haul. You’ll need the most affordable life insurance over age 60 you can find to get the most value out of your pension selection.
If you are unfamiliar with what a pension maximization strategy is, here’s a brief overview:
If you are pension eligible, you’ll get a wide assortment of payouts to choose from. A life only option gives you the highest payout, but when you pass, it stops. A joint or survivorship option will pay as long as either you or your spouse are living, but the payout is much smaller.
In order to get the most out of your pension, with the highest amount of security for your spouse, you’ll need to employ a plan which actually involves buying life insurance, but only on one condition: you can find an affordable life insurance policy with a longer duration.
The plan involves taking the highest payout option, life only (or single life), and simultaneously purchasing a life insurance policy which would leave enough cash to yield an identical income to your surviving spouse.
Fortunately, affordability is not much of an issue when life insurance is applied for over 60, but it does get worse as you attempt to lock in a greater duration. Let’s a look at some sample rates for a healthy 60 year old female who does not use tobacco products:
Remember Your Objective For Term Life Over 60
Be sure you’re keeping your objective for the life insurance policy at the heart of your purchase. For example, you might have been thinking about buying a life insurance policy to leave a legacy to your children or grandchildren. Is term still the right solution?
Unfortunately, a term life insurance policy after your turn 60 may not be ideal in this particular situation. While you may still be able to leverage your dollars, there’s no guarantee you’ll be able to leave the lump sum to your heirs, unless you buy a different type of policy like a universal life insurance policy, a whole life insurance policy or a survivor-ship life insurance policy.
Remember, a term life insurance policy is for a predetermined duration. If you buy a 20 year term policy for example, but live to the 21st year, you have outlived your policy, and lost your premium dollars you paid over the period. Your heirs would then receive nothing but any other assets you might have accumulated.
Life Insurance After 60 To Cover Debt Obligations
One of the main life insurance uses is to cover debt obligations. Even if you’ve paid off your house, there are other lingering bills you may not want to leave your surviving spouse or children with, and life insurance is a way to provide those funds should your debts outlive you.
As you probably know, health care costs in retirement are a very heavy burden. Not only are health insurance premiums higher than ever, but excess liabilities can mount beyond your control quickly if you are hospitalized chronically, or need expensive surgeries, therapies, or rehabilitation. Rather than leave these mounting obligations to your heirs, a life insurance policy can be a leveraged way of paying them down, or completely paying them off.
The issue here is needing to think about your life insurance needs ahead of time. Obviously you can’t possibly know what kind of debt you may accumulate in retirement, but you also don’t know when you health is going to fail you either. And once it does, affordable life insurance may be completely out of the picture.
Life Insurance After 60 – It’s Not Too Late
If your health is still good, it’s not too late to get affordable life insurance after 60. But every year you wait, your premium is rising. And unlike young adults or even middle aged folks, premiums aren’t just moving up slowly. They are going to start increasing at exponential rates every year, especially for the longer duration term policies.
The best way to get a life insurance plan when you’re in your 60s is to work with an independent insurance agent. Every insurance company is different and all of them are going to give you different rates based on how they view older applicants. Some companies are going to give you better rates, while others are going to charge you a fortune every month for your life insurance plan.
Go ahead and get a quote sooner than later, so you can at least begin to get an idea of what it’s going to cost on yourself, your spouse or your child’s life insurance needs. Term life insurance for someone over 60 years old is an integral part of a financial plan, especially if you’re just years, months, or even weeks away from retirement.
We know that finding the perfect life insurance plan can be a long and frustrating process, but it doesn’t have to be. Our agents are here to help connect you with the perfect plan to meet your needs. Because you can’t predict the future, you shouldn’t wait any longer to get the insurance protection that your family will need if something tragic were to happen to you.
Take the time today to protect what you’ve spent your whole life building. Not having life insurance protection is one of the worst decisions that you can make for your loved ones. If something tragic were to happen to you, and you didn’t have life insurance protection, your family would be responsible for all of your debts and final expenses. Losing someone you love is never going to be easy, but being left with a mountain of debt is going to make the situation a thousand times worse. Having a quality life insurance policy will give your family the money that they will need regardless of what happens to you.
Follow along as we discuss more about life insurance for people over the age of 60: