Life insurance for seniors over 60 is a fast evolving demographic in the life insurance industry. Seniors over 60 are searching for life insurance on a daily basis to cover many of the financial obligations which still exist. Life insurance can be one of your greatest financial assets because it provides protection of your future financial situation.
It is important to understand when you are saving for retirement you need to have a safety net just in case a tragedy occurs and you don’t make it to your retirement date. Seniors over 60 may either be in their prime earning years, or you may just be starting your retirement. Either way, life insurance for seniors over 60 can still play a vital role.
The Purpose of Life Insurance For Seniors Over 60
Life insurance over 60 used to be a topic which nobody would cover because it wasn’t obtainable for most Americans. Life expectancy used to barely stretch past 60, so getting life insurance over 60 really wasn’t a thought for most people. Now life expectancy is getting longer and longer each and every year. This is due to increased medical knowledge and technology, safety concerns, and people living healthier lifestyles. Now with life expectancy well into the 80’s the need and demand for life insurance has expanded.
Some of the most common reasons which we help seniors over 60 obtain affordable life insurance include:
- To cover a primary mortgage
- Protecting a second home
- Pension maximization and protection
- Income stream protection
- Retirement planning
- Legacy creation
- Final expenses
This list included many of the popular reasons why someone in their 60 would need life insurance, but each circumstance is obviously different. Life insurance for seniors over 60 can be used in so many creative ways which is why it is such an evolving topic.
It seems like you can’t turn on the television without seeing a commercial advertising dirt cheap life insurance for seniors. With all of these ads, and options, it is important to understand what life insurance options exist for seniors over 60, and the advantages and disadvantages of each.
Some of the most popular options which exist when viewing life insurance for seniors over 60 include:
- Term Life Insurance
- Guaranteed Universal Life Insurance
- Survivorship Life Insurance
- No Exam Life Insurance
Term Life Insurance
Term life insurance is the most purchased type of life insurance because of the ability to get a sizable death benefit for a relatively low premium amount. However this type of life insurance will only last for a specified amount of time, hence the term. This type of life insurance is great to fill a life insurance need which is temporary. Even in your 60s, term life insurance is still extremely affordable.
Guaranteed Universal Life Insurance
Guaranteed universal life insurance, also known as GUL, is a very popular choice for life insurance for seniors over 60 because it is a permanent life insurance policy. This policy will keep your premiums level for the rest of your life. As long as you pay your premiums, you will have coverage for the rest of your life. It is more expensive than term life insurance, but it will provide you with coverage later in life.
Survivorship Life Insurance
Survivorship life insurance is a special type of life insurance which is a policy on two people. The death benefit pays upon the passing of the second individual. This policy allows you to leverage your money, and produce a large death benefit. This type of policy is great for legacy creation purposes. When considering this type of life insurance for seniors over 60, be sure it truly makes sense as it’s a long standing product.
No Exam Life Insurance
No exam life insurance is popular life insurance for seniors over 60 because of how convenient it is and the quick turnaround. Many people do not like to undergo a medical exam, but still understand the importance of life insurance. This is why no exam life insurance was created. You will pay a slightly higher premium for this convenience , but it is still a great option.
Steps To Affordable Coverage
Once you have decided you need life insurance, the next step is to consider the purpose of your life insurance and the coverage amount and duration. Over 60 life insurance is so important because it could be the last life insurance policy you purchase, so it is important to make a good decision.
Working with an independent insurance agent is crucial because we have access to multiple carriers and can get you the best rate in the industry. You can compare rates through our online quoter, and you can even apply online or over the phone.
Applying and obtaining life insurance for seniors over 60 has never been more accessible or affordable. Now is the time to take advantage of what the life insurance industry is offering.
As the baby boomer generation reaches retirement, and more people are retiring daily than any other time in history, the question of affordable life insurance for over 60 arises. Many boomers are reaching retirement and have many questions regarding financial security, as well as life insurance options which are still available for those over 60. Most people purchase their first life insurance policy when they are in their 30’s and 40’s. The majority of people also purchase term life insurance policies with durations of 20-30 years. Through some simple math you can see most people in their 60’s are facing a dilemma of their life insurance policies expiring with plenty of life left to live.
People Are Living Longer. So Should Your Life Insurance
One of the reasons we get so many questions regarding affordable life insurance for over 60 is simply because they are such a large part of the population, and have so many financial needs. People over 60 have concerns of outliving their money, long term care situations in the future, and estate planning needs. People are living longer which is creating a need for proper retirement income planning strategies, and also increased life insurance planning.
When the age expectancy was in the 60’s and 70’s it was appropriate for a life insurance policy to end in this age range. But now, people are living on average into their 80’s, and many people are living to be 90 and beyond. It makes sense for someone who is 60 and is coming to the end of their term life insurance policy to look into purchasing another 20 year term life insurance policy to protect them in their pre-retirement or retirement years.
We also find many people in their 60’s do not have all of their debts paid off, still have children relying on them (boomerang kids), and are taking on second mortgages. In Myrtle Beach, SC we live in a resort town, where an influx of out of state residents are purchasing second homes to use as vacation homes or investment properties. The majority of these people we speak with are over 60 years of age, and have taken a 15 or 30 year mortgage out on these properties. They want to make sure their investments are protected for their loved one’s in the event of their death. We help many clients who obtain a term life insurance policy which matches the duration and amount to their mortgage. In the event of their death during the policy life, their beneficiary would be able to pay off the property and not worry about losing the investment or vacation home.
Life Insurance Planning To Create A Legacy
The majority of the time we speak directly with people over 60 who are looking for life insurance, but it is also not uncommon when we speak with their children. Many children of baby boomers are worried about the financial impact the death of one of their parents would have on them. It is a legitimate concern, especially for those who do not have a financial account earmarked for final expenses. We usually speak with the child of a parents after the passing of one parent who had no life insurance. This usually results in the child paying the final expenses of the deceased parent, and they want to ensure the same thing doesn’t happen again with the passing of the second parent.
Life insurance is a great way to ensure the money will be there, and also a great way to leverage today’s dollars. It can also be used to create a legacy for grown children which could not be achieved through traditional investments. Life insurance is a great tool to leave a legacy because the proceeds of a life insurance policy pass to the beneficiary(s) tax free. The beneficiary can then use the money for whatever they want such as to pay off a mortgage, pay for an education, or set aside for retirement planning purposes.
For seniors looking at life insurance policies, there are a few questions that are commonly asked, which we will be addressing today. The answer to this question is largely dependent upon the person asking it. For instance, a man or woman who lives alone and doesn’t have any close family or debts may not need life insurance over 60 at all. While on the other side of the spectrum, seniors who still have mortgages on their houses, have dependents or other people who would be burdened if they pass away will find a lot of value in a life insurance policy. For some people, it is less about the money, but simply about making sure their passing doesn’t put anyone through any financial hardships.
Am I Eligible For Life Insurance Over 60?
Many seniors believe that, due to their age, they are ineligible for a life insurance over 60. This couldn’t be farther from the truth though, with seniors well into their 70s and 80s taking out life insurance policies every day. The thing to keep in mind, is that the older you are, the more the insurance companies will see risk and your plan will be priced accordingly. For most seniors looking to get life insurance, it is better to act quickly and get a better rate, rather than wait a couple years when the rates may become significantly higher. We offer tools, like this one that can give you an instant quote of what your life insurance plan might cost you
What Life Insurance Plans Should I Consider?
It really depends on your own personal needs. For people buying life insurance over 60, term life insurance and small whole life insurance policies are very common options, as they allow you to pay a fixed amount for a certain amount of time being insured.
Many seniors will take out a term life insurance policy to cover them during the years when they are still working and earning money. Then they stop paying once they retire and go on a fixed income. This is a good option for seniors who are still working and don’t plan to retire in the immediate future.
Others take out a small whole life insurance policy, also known as burial insurance”. This is usually for $10,000 – $25,000 of whole life insurance and is perfectly suited for seniors on a fixed income. This amount is released when the person passes away and is used to cover the costs of their funeral and outstanding debts, so as to not burden the family financially.Many seniors will do a combination of both, taking out a term life insurance over 60 AND buy a burial insurance policy. They let the term life insurance policy lapse when they retire and they still have an inexpensive burial policy when they hit their fixed income years. This protects most people’s best interest at both stages of life.
How To Buy Life Insurance Over 60
When you age, the longer you take to get life insurance, the more expensive it can become. With life insurance over 60, we always recommend people to do their research, and not rush into any decisions, but we also recommend not waiting too long to get insured. The price will probably not be drastically different between this month and next month, but the difference from this year to next year will be noticeable.
Your health condition can also decline quickly after 60, so if you are fairly healthy now, it is best to apply sooner rather than later, in case of any sudden medical issues.
It is important to keep one thing in mind when shopping for life insurance over 60 – it will be more expensive compared to your younger years. How expensive will depend on many factors, but you need to make sure you can afford it. You need to approach the buying experience with the knowledge that it will cost more.
To keep your costs down, consider working with an independent life insurance agency like us. We have access to over many life insurance carriers and can do the research and shopping around for you, to get you the best rate. For the average person to reach out to all the companies we represent would be very time-intensive to say the least.
As you can see, there are still many plans for life insurance over 60 available for seniors, many of them fitting right into where they are in life at the current moment.