Finding affordable life insurance when you are over 60 may seem like a daunting task. Severe medical conditions, lower income levels, and age are factors that can make buying life insurance difficult.
If you are 60 or over, there are affordable options for obtaining life insurance to protect your finances and other assets and to give your family the peace of mind they deserve.
There are several types of life insurance choices for individuals age 60 years and older, including term life, universal life, guaranteed universal life, whole life, and final expense. Each product offers different levels of coverage at varying degrees of cost.
A key hindrance for seniors in obtaining life insurance is the requirement of a medical exam. A person’s medical history helps to determine the level of risk to the insurance carrier. For non-smokers in good health, premiums tend to be less expensive.
Individuals with serious health issues often end up costing the insurance carrier considerable losses. In this case, premiums are higher to cover any financial risk for the company. Also, a person with a life-threatening disease or critical health condition may not qualify for life insurance.
Final Expense Life Insurance
One of the most popular types of life insurance specifically designed for seniors is final expense insurance. Just as its name suggests, this type of policy aims to help with end-of-life care and other medical bills not covered by health insurance – funeral costs, and burial expenses.
Within the over-60 population, many people have various health issues. Final expense insurance often doesn’t require a medical exam.
Many insurance companies offer final expense insurance as a guarantee issue policy that contains a waiting period. The only requirement is a specific age-range. Again, no medical exams are required.
This type of insurance is often more expensive but is a viable option for seniors with serious or numerous health issues.
Here are actual rates for a $10,000 Final Expense Policy for a Male and Female Non-Smoker:
|Applicant Age||Male Non-Smoker||Female Non-Smoker|
Term Life Insurance
As one of the least expensive life insurance products, term life is an excellent option for seniors. Term life is considered a temporary policy type. It can be purchased for specific periods from five to 30 years with fixed monthly premium payments.
Unlike permanent life insurance products, term life has no cash value. The type of coverage an individual over 60 can obtain varies by age and may require a medical exam. Some companies do offer seniors term life policies that don’t call for a medical exam.Here are actual term rates for healthy seniors looking to purchase life insurance without breaking the bank. These rates are for a $25,000 20-year term policy for a male and female non-smoker:
|Age of Applicant||Male Non-Smoker||Female Non-Smoker|
Whole Life Insurance
Whole life insurance is considered one of the oldest types of policies. Although the premiums tend to be higher than other insurance types, the benefits often outweigh the costs. From available cash to fixed-rate monthly payments, whole life insurance can be a financial asset.
This type of policy builds cash value over time. Policyholders can borrow against this equity for any reason. If there is an outstanding loan at the time of the policyholder’s death, the insurance company will deduct the unpaid debt amount from any death benefits.
Premiums don’t fluctuate. They will never increase during the life of your policy, even as your health and living situations change due to age-related reasons. Other than for missed payments, your insurance won’t be canceled, regardless of your health status.
Universal Life Insurance
Like whole life insurance, over time, universal life insurance builds cash value. The policyholder can withdraw cash against this equity for any reason. Cash taken out against the policy doesn’t have to be repaid. Any amount owed will reduce the death benefits.
The cash value is determined by the investment portfolio set up by the insurance carrier to back the policy. In the initial contract, the insurance company sets a minimum interest rate that the policy can’t fall below.
One of the main benefits of universal life insurance is its flexibility. As long as there is sufficient cash value, the premiums payments can be reduced or entirely skipped. Any death benefits can also be decreased as needed. Like any investment portfolio, interest rates are the key.
If the interest rates fall below the minimum established by the insurance carrier, your monthly premium payments may need to be increased to avoid losing insurance coverage.
Guaranteed Universal Life Insurance
The primary focus of a guaranteed universal life insurance policy is the death benefit. Also, for seniors on a fixed income, this type of policy may be the right choice. Monthly premium payments remain the same without fluctuating throughout the life of the policy.
Seniors who prefer a larger death benefit and are in good health can qualify for Guaranteed Universal Life Insurance with affordable rates and a larger death benefit.Here are actual rates for a $50,000 Guaranteed Universal Life policy with coverage to age 95 for male and female non-smokers:
|Age of Applicant||Male Non-Smoker||Female Non-Smoker|
Many individuals over 60 feel they aren’t able to purchase life insurance. With guidance, they can. The best way to find the right policy is to work with a knowledgeable independent insurance agent. Your independent agent can work with you to find the appropriate coverage at a reasonable cost for all your life insurance needs.
In my 20+ years as an independent life and disability insurance broker, I have personally assisted thousands of clients with their life and disability insurance needs. Being independent, I represent many highly-rated insurance companies and, because I am not beholden to any one insurance company, my focus is to find the right company and policy for each individual client.
I believe that when people shop for insurance (or anything else, for that matter) on the Internet, they are looking for a simple, non-intrusive, non-pressure method of doing so. I strive to treat my prospective clients with the utmost respect and I believe an educated prospect can make the right decision without sales pressure.