Life Insurance For Over 60

If you are over 60 and wondering whether you should get life insurance or not, read this article to know what your options are.

Getting life insurance is an excellent way of providing financial security to your loved ones even after your demise. If you haven’t thought of getting life insurance earlier, you still have time.

There are many life insurance providers offering policies that cater to seniors over 60. To become eligible for such a policy, you do not need to meet many requirements. Moreover, the premium is also affordable. As you grow older, the cost of life insurance decreases. This gives seniors encouragement to apply for life insurance at any stage of life.

Before you start exploring all your options, you should look at the following important questions that will give you information regarding all the vital components of life insurance. 

What Life Insurance Policy is Best For Seniors Over 60?

When you first start hunting for the right life insurance policy as a senior, you need to match the details of each policy with your needs and requirements. The needs of every individual vary, depending on the number of dependents.

In addition, you need to decide whether you want to leave an inheritance for your loved ones or support them financially to pay for your funeral expenses. This is an extremely important step as it helps you decide how much coverage you need and the kind of insurance plan that you should opt for.

Later in this article, we will discuss the best life insurance policies for seniors.

How Much Life Insurance Do People Over 60 Need?

While keeping in mind the purpose of your life insurance, determine the kind of coverage amount you should be looking for. If you only wish to pay for your funeral expenses, you might want to consider final expense or burial insurance.

However, if there are significant debts that you have to pay off, you might want more life insurance coverage. The payout benefit received after your death should be enough to pay off all the remaining obligations of your family members. Hence, if you want to leave an inheritance, you will need to consider a much bigger coverage amount.

Some of the things you should consider when determining how much life insurance you need:

  • Mortgage debt
  • Credit card debt
  • Your annual salary
  • Number of financial dependents
  • What you want to leave your remaining family members

Often times, life insurance for seniors 60 and over becomes more expensive because of their age, but they need less coverage because they have less outstanding debt and financial dependents.

For those looking to protect your assets and perhaps pass them on to beneficiaries in an estate, whole life insurance may be best for you.

How Expensive is Life Insurance for People Over 60?

As you already know, there are four basic categories of rates that are offered to individuals applying for life insurance – Preferred Plus, Preferred, Standard Plus, Standard.

Seniors can be eligible for all these rates however great importance is given to the medical condition of the individual. If you are in great shape and do not suffer from any of the serious illnesses, you are more likely to get a better rate.

Can Life Insurance Companies Reject Me Because of My Age?

Most probably, no. This is because most of the insurance providers have policies that cater to people up to the age of forty.

However, if you have serious medical issues and/or are morbidly obese, you might be rejected due to those reasons. Even then, you might find one or two insurance providers that will be willing to provide you coverage.

What Types of Life Insurance Are Available for People Over 60?

As you grow older, health complications may arise.  And, obviously you are closer to the end of life, which is a sad, but true fact.

As a result, there are life insurance policies that may not be best for seniors over 60, and there are other life insurance policies that are good for people over 60.

Some of the best types of life insurance for seniors over 60 are:

Term Life Insurance 

Term life insurance provides coverage for people in terms.  Usually, these are from 10-30 years, and are offered in 5 year increments.

For this type of coverage, most seniors over 60 are only offered 20 year term policies.  This is because most life insurance companies only offer term coverage through age 75, with a few offering to age 80, and some companies even offering coverage to 95!

The following life insurance companies offer term life insurance for seniors over 60, through age 95:

  • Mutual of Omaha Life Insurance
  • Protective Life Insurance
  • American General Life Insurance

Permanent Life Insurance 

Permanent life insurance provides life insurance coverage for the rest of your life (usually through age 121). For seniors over 60, whole life insurance can be affordable depending on the provider you choose.

Whole life insurance comes in a couple of different policy types, such as:

  • Universal Life Insurance
  • Indexed Universal Life Insurance
  • Variable Life Insurance
  • More…

Each of these policy types offer their own benefits to the insured, and each accumulate cash value from the premiums paid into the policy.  This can be a great investment vehicle for seniors who have money on hand, and are looking to build a larger value with it before giving it out to their beneficiaries.

Depending on your health, the following companies provide very affordable permanent life insurance coverage for seniors over 60:

  • Prudential Life Insurance
  • AIG Life Insurance
  • Mutual of Omaha

Simplified Issue Life Insurance 

Simplified issue life insurance coverage for seniors is typically offered as permanent life insurance.  What does simplified issue mean?

Simplified issue means that the application process is quicker, because the underwriters don’t need to know as much information about your health.  This is a type of no medical exam policy, where you do not have to take a medical examination to be approved for coverage, but rather, only need to answer a few questions.

Typically, most simplified issue life insurance policies are grouped under the term burial life insurance because of their small policy amounts (usually $5,000 to $50,000, with a few companies offering more coverage).

Burial life insurance coverage is meant to cover immediate death expenses such as funeral and burial, and also meant to cover any remaining debts.

An alternative option to this is final expense insurance, which unlike burial insurance is made specifically for final expenses only.  The beneficiary does not have the right to spend death benefits except for on funeral-related expenses.

Guaranteed Issue Life Insurance 

Guaranteed issue life insurance is as the name implies, guaranteed.  This means that people will automatically be granted coverage, regardless of their health. It is life insurance for seniors in their 60’s with no questions asked, and next to no waiting time.

As a result, premiums for this type of life insurance are the highest amongst those available for seniors, when compared on a cost per thousand of coverage basis.

However, for people who are in poor health or who need easy life insurance quickly, guaranteed issue life insurance is one of the best life insurance policies on the market.

Some great guaranteed issue life insurance carriers are:

  • AIG
  • Mutual of Omaha

Survivorship Life Insurance

Survivorship life insurance or second to die life insurance is a type of joint life insurance policy.  This means that two spouses can purchase life insurance together, under one policy and one provider, with one premium.

There are two types of joint life insurance, the other being first-to-die life insurance. The reason we recommend survivorship life for seniors over first to die life insurance is because of the way it pays out.

First-to-die life insurance pays out to the surviving spouse after the first spouse dies, but then the life insurance policy is lapse, leaving no coverage for the remaining family members in the event of the remaining spouse’s death.

Survivorship life pays out after the remaining spouse dies, and stays in place when the first spouse dies, leaving coverage for family members in the event of their death.

What Life Insurance Policy is Right for People Over 60?

As an individual over 60, you have the option of choosing whole life or term insurance. Alternatively, you can also go for a specialized over 60 life insurance policy. A whole life insurance has a cash value but the premium is greater than in the case of a term insurance.

Therefore, unless you want to leave an inheritance for your family members, you should opt for a term life insurance policy. A term life insurance for seniors serves the purpose of paying your debts and funeral expenses and is cheaper than whole life insurance.

Simplified issue and guaranteed issue life insurance are other types of insurance for people over 60 that helps pay off debts, support funeral expenses, and give protection to family members in exchange for affordable premiums.

It has no cash value. This policy is considered the best for seniors over 60 as it is cost-effective and takes care of all the essential needs of your family members once you are gone.

How Do I Decide on the Right Policy?

Many people make the mistake of choosing the first provider that they find. For your own benefit, it is important to carry out extensive research and compare the quotes received by different insurance providers. Without this step, you will risk paying more for the same policy that would have cost less from another insurance provider.  

For this purpose, it is recommended to work with an independent agent who can compare life insurance rates for seniors over 60 from multiple companies at once to help identify the best life insurance coverage for your specific situation. 

Our independent life insurance agents support some of the best life insurance companies for seniors on the market, and are ready to help you today.  Give us a call, or begin online with our quick quoting engine to compare life insurance rates for seniors over 60 immediately!

How Do I Choose the Best Life Insurance Company for Seniors?

When it comes to choosing the best life insurance company for seniors over 60, it is important to consider the following factors:

  • Financial Rating
  • Claims Payout
  • Policies Available
  • Best Life Insurance Rates for Seniors Over 60
  • Policy Riders
  • Conversion Options

All of these factors make a difference when choosing the best life insurance coverage for seniors over 60.  You want a company that has a combination of all these factors, and as a result, the lowest life insurance rates may not always be the best policy for your specific needs.

The best way to be sure that you are considering all of these factors before making a decision is to speak with an expert.

The Best Life Insurance Companies for Seniors Over Age 60

Here is a brief overview of some of the best life insurance companies for seniors.  To take the time to go in depth about each company and their coverage would take too long, and bog down the main point of this article.  However, you can find links to our life insurance company reviews in the chart below.

 

Company Customer Reviews Our Life Insurance Company Review
AIG Life Insurance 4.1 / 5 AIG Life Insurance Review
North American Company 4.0 / 5 North American Life Insurance Review
Transamerica 4.2 / 5 Transamerica Life Insurance Review
Prudential 4.3 / 5 Prudential Life Insurance Review

 

Why Should I Get Over-60 Life Insurance?

You cannot question the significance of life insurance. You do not want to cause stress to your family members after your death in the form of excessive expenses related to your burial and funeral.

Taking care of them while you are alive brings you satisfaction. Moreover, your family members can grieve over their loss rather than worry about paying for the expenses.

In addition, if you have debts that you have been paying all your life, you should take proper measures to handle the payments after your death. Life insurance is a way of taking responsibility for all your affairs even after you have left the world. It is a selfless act of extending protection for your loved ones after your demise.

When Should I NOT Get Over 60 Life Insurance?

Do note that there are some situations where you don’t need over-60 insurance. These include having no dependents and no debt.

In addition, if you are confident about your ability to support your medical expenses at the end of your life and have enough to support your funeral expenses, you should skip getting life insurance.

How to Get Cheap Life Insurance for People Over 60

There are certain steps that you can take to minimize your expenses related to life insurance policy over 60. These include:

1. Managing Your Health

If you control your blood pressure and follow healthy dietary habits, you will be able to reduce the cost associated with the life insurance policy.

2. Shopping for the Right Provider

As mentioned, you should be ready to shop around for the right provider. It is not necessary that every provider have the same financial standing as others.

You will need to read reviews and consider the financial position of the provider you are considering for your life insurance plan.

3. Carrying Out a Comparison

After shopping around, shortlist one or two insurance providers and get quotes from them. Once you receive the quotes, making a decision becomes easier. Thus, you can choose the most affordable option.

4. Buying on Time

If you are already over 60, you should make the decision as early as possible. Wasting more time will only decrease the term coverage that you are able to receive. People over 75 sometimes find it difficult to find term coverage greater than 10 years.

How Much Does Life Insurance for Seniors Over 60 Cost?

It is important to remember that the quotes can vary considerably from one provider to the other. The following life insurance rates are for term life insurance coverage, and the premiums displayed are paid on a monthly basis.

Age $ 100,000 $ 250,000 $ 500,000
60 $ 29 $ 61 $ 117
61 $ 31 $ 67 $ 129
62 $ 35 $ 72 $ 138
63 $ 40 $ 82 $ 157
64 $ 43 $ 95 $ 182
65 $ 49 $ 107 $ 206
66 $ 54 $ 120 $ 254
67 $ 59 $ 132 $ 258
68 $ 63 $ 143 $ 279
69 $ 68 $ 154 $ 300

If you haven’t started hunting for the perfect life insurance plan for your needs, this article will definitely give you the encouragement you were looking for.

Now that you are well aware of all the different aspects of life insurance, it is time to do some shopping. Thus, you can finally get valuable protection for your loved ones.

Find the Best Life Insurance Rates for People Over 60

When comparing life insurance rates, the best thing you can do is speak with a professional.

There are a lot of life insurance options out there for seniors, and you want to make sure that you are making the right decisions for you and your family.

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