At age 61, you may begin to question what will happen to your family or loved ones if you were to meet some kind of misfortune. This is a natural reaction for someone who has most likely retired and met many of the goals in their working life.
The next natural progression is to make sure your family are set to reach their own goals in life. Unfortunately, the options that were once available to those age of 60 or older are becoming increasingly difficult to obtain. At this age, you may think that you can’t afford or be accepted for a life insurance policy.
This isn’t true. Plans can be cheaper than you think.
There are however still options for someone age 61 or over. One such option is guaranteed issue life insurance. This is not the most well-known type of policy but it serves someone of the age of 61 very well in terms of meeting their needs.
There are several benefits to this type of insurance such as it being a long-term option and reasonably priced compared to whole life insurance. Additionally, this type of insurance guarantees a benefit until the age of 90. Because of this reason, it can often be compared closely to a 30 year term policy.
A guaranteed life insurance policy works in a similar way to a 30 year term policy. However, at any age over 61 it is technically no longer a 30 year term. Aside from it not necessarily being exactly 30 years, it is almost identical to a 30 year term in every other fashion.
For a $100,000 policy, a 61 year old can expect to pay $104.23 in premium payments. These rates of course can vary depending on a number of different conditions. This premium is derived for a male who is relatively healthy and a non-smoker.
Again, rates will vary accordingly to the individuals’ specific conditions. It is always advisable to work through a reputable insurance agent who is knowledgeable in different policies. Going this route will most likely save you time and money in the long run.
Here is what you might pay for a $250,000 plan:
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If you are wondering who this product is best suited for, you are asking the right questions. First of all this policy is best suited for someone between the ages of 60 and 65. It will not only cover you for the rest of your life, but it will save you 70 to 80% over what you will pay for a whole life policy.
One thing you have to consider is that there is a fixed premium that does not expire for 30 years. You have to consider whether or not you will outlive this policy. There are several considerations that can go into this determination. Are you relatively healthy? What is the life expectancy in your family history? The last thing you want is to pay for a life insurance policy for 20 years and then have to renew when you outlive it. Sure, it’s nice that you outlived your life insurance coverage, but you’ll be forced to reapply for a new plan, which is going to cost drastically more this go around. It’s better to have too much coverage than not enough.
Finally, you may consider a whole life insurance policy. This will allow you to have permanent coverage so no matter what your family members will be covered. If you’re worried about outliving a term insurance policy, these whole life plans are one alternative. These policies never expire. At age 61, your rates will be much more expensive, and these whole life plans aren’t the most cost-effective option unless you plan to live to be 110 or older.
Having life insurance is an important part of every stage of life, even at age 61. Sure, getting approved for a policy at this age is going to be more difficult than it was several decades ago, but that shouldn’t stop you from getting the life insurance you need.
Not having quality insurance could leave your loved ones in a tight spot. All of your debts and unpaid expenses will be left to them. Your mortgage, car payments, hospital bills, etc. will be passed to them to find a way to pay for. All of these expenses can be difficult for a family that is grieving the loss of a loved one. Don’t let your family experience the financial and emotional strain of losing you.
Getting the Best Rates Available
To start, quit smoking. There is no way around it. Stop smoking and you save money.
Aside from quitting smoking, you can lower your rates even further by focusing on your health and losing weight. Carrying extra pounds will cause your premiums to go up. Being overweight increases the chances of having health problems, which means you would pose more of a risk to the insurance company.
The bigger risk you are, the bigger your rates are going to be. Simple as that. Not only will you shed the weight, but it should also help you lower your blood pressure and cholesterol (both of which are used to calculate your monthly premiums).
Want to save money? You need to compare quotes with several different insurance companies. Each of them has a different system for deciding your risk and what rates you’ll receive because of your age and health. Because each of them uses a different rating calculation, you could receive drastically different quotes depending on the company.