Life insurance is important no matter your age.
Though it’s most common for people to purchase it when they’re young and starting a new family, even aging seniors can benefit from the right policy.
The key is weighing your own needs and preferences. Though life insurance benefits some seniors, it doesn’t necessarily benefit all seniors.
If you do decide life insurance is worth it for you, know finding the right life insurance is slightly more difficult the older you get. You should expect to pay higher monthly premiums, at the very least.
But we can help you keep those costs down.
Here’s our guide to buying life insurance in your 60’s, including 3 tips to drastically reduce your premiums.
Why Seniors Need Life Insurance After Age 60
The number one reason to buy life insurance as a senior is to ensure any dependents left in your family are secure if you pass away.
For example, your spouse might be dependent on your income. The most common case where this is true is if you’re still working, but a pension from retirement is another example.
If you pass away and this income disappears, where is your spouse left? A life insurance policy can help protect your spouse financially in the event of your passing.
A similar example is if family members still depend on you financially. An example is children you still support. A life insurance policy can help provide a more stable financial future for them when you pass away.
Yet another reason why some seniors need life insurance is because of a high net worth. Many financial advisors recommend life insurance policies as a way of minimizing estate taxes.
No matter your specific reasons for looking into life insurance coverage, there’s no denying the right policy can benefit you and your family.
When You Don’t Need Life Insurance
TIP #1: Not all seniors will benefit from life insurance coverage.
For example, if you have sufficient retirement savings, have no dependent children or family members, and have no outstanding financial commitments, you might not benefit from a life insurance policy.
You should also ensure you have long term care insurance and enough money for your funeral expenses before foregoing life insurance altogether.
But what if you currently have life insurance and feel you don’t need it any longer? You can simply drop your life insurance.
However, if your policy has cash value, you may want to talk to someone first, so you don’t have to deal with surrender charges. If it’s a term life policy, you can just call and cancel.
Buying A New Life Insurance Policy
The easiest way to have life insurance in your 60’s is to continue having it from when you bought it when you were younger.
But what if you’ve never had life insurance before? Where does this leave you?
Fortunately, it’s still possible to buy life insurance in your 60’s – at decent rates, at that.
The key is understanding the process, comparing rates from several providers, and buying a policy as soon as possible.
TIP #2: Stop waiting; it’s costing you money!
The fact is this: life insurance rates go up the older you get. You’ll pay much more at 60 years old for the same plan you would at 30 years old.
You’ll even pay more if you start coverage at 65 years old than you would if you start the same coverage at 60 years old.
That’s why it’s so important to get on the ball and start looking at life insurance options now.
Note, applying for life insurance in your 60’s is much the same as applying for life insurance at any age.
Though your age will be taken into strong consideration, life insurance providers are also considered about your overall health, lifestyle, and any medical conditions you might be struggling with.
How Much Will You Pay?
The exact premium you’ll pay for your life insurance coverage varies depending upon on a number of factors.
These factors are largely the same, whether you’re 65 years old or 30 years old. They include your lifestyle and medical history.
For example, those who smoke will have a much more difficult time qualifying for traditional coverage. When you do find a provider willing to insure you, you can be certain you’ll pay much more in terms of premiums than a non-smoker.
Another example is someone who has a serious illness. Your illness will dictate a higher premium than someone else in sound overall health.
So, where does age factor into all of this? Well, as mentioned above, the older you are when you buy your life insurance policy, the more you’ll pay in way of premiums.
It’s all due to life expectancy.
Of course, even these premium rates will vary from provider to provider. That’s why it pays to shop around for the life insurance providers that offer the best rates for seniors.
And that’s our last tip.
Tip #3: Shop ALL the carriers you can (we can take care of this for you).
Buy Life Insurance ASAP
We can’t stress it enough – buy life insurance as soon as possible. If you’re planning on buying life insurance at all, it’s important to buy it as soon as possible, especially as a senior.
As we’ve mentioned countless times already, the premium you’ll have to pay goes up the longer you put off investing in coverage.
Simply put, your premium goes up every year you put off making the purchase. And these yearly leaps in price are even more significant if you’re in your 60s.
The Application and Approval Process
Applying for life insurance in your 60’s is just like applying for life insurance at any age, though you likely won’t have the option to skip the medical for a traditional term policy.
It starts with filling out an application.
The application will ask several questions about your personal information, health, and lifestyle.
Be as honest as possible on the application. Lying about medical issues never pays off as most providers also require a current medical exam, anyway.
Once your application is complete, it will take the underwriters at the life insurance company between 4 and 6 weeks to review it.
You’ll receive a response at the end of this time. If you’re approved, you’ll be told the premium you qualified for, and you can accept it or deny it.
Those who are denied traditional coverage still have options. The most common among these is a guaranteed issue policy.
Your age is just one factor underwriters look at when buying life insurance in your 60’s.
Other factors which weigh heavily into their decision are your health and lifestyle, as well as your family health history.
All of these factors combined are what lead to the life insurance premiums you receive.
Find the Best Life Insurance Rates With Our Help
Some companies offer better life insurance rates for those in their 60’s than others.
It’s a smart idea to do your research to find out which companies do this. A key detail to look for is a life insurance company who asses your actual age rather than your insurance age.
Start your research now and compare and contrast the quotes you receive. Just remember, only get as much as you need.
If you have questions, please feel free to reach out to us, or go ahead and get a quote directly on this page.