Assuming you are 62 years old (or younger), life insurance is probably at the forefront of your mind. And it should be because it’s a great way to financially help take care of those you love.
But you may have questions like these and others that I will answer:
- Should I buy term or permanent life insurance at my age?
- What is the average life insurance cost at age 62?
- What can I do to get the best life insurance rates?
- What is the easiest no-hassle way to get the lowest premiums?
Shopping for life insurance, while you are still healthy, is a great idea so as to lock in the lowest rates possible. This is also a great time for people to buy life insurance for their children.
There are plenty of options for coverage at your age so it is strongly advised that you shop around before making a decision.
With thorough research, a 62-year-old can come away with a great life insurance policy that can provide you and your family with peace of mind.
Table of Contents
- Your Options for Insurance in Your Sixties
- What Is the Average Life Insurance Cost at Age 62?
- What Can I Do to Get the Best Life Insurance Rates?
- What Is the Easiest Way to Get the Lowest Premiums?
- How Are Premiums Calculated?
- The Importance of Life Insurance
- The Bottom Line – Know the Options for Life Insurance at Age 62
Your Options for Insurance in Your Sixties
There are multiple options for life insurance for those who are at or nearing age sixty-two. The two most popular types of insurance are term life insurance and permanent life insurance.
Term life insurance is popular because of the availability to be purchased for different periods of time. These periods are typically purchased for either 5 years, 10 years, 15 years, 20 years, 25 years, or 30 years.
There is also an Annual Renewable Term plan that is basically a 1-year renewable policy.
Term plans are known to be relatively affordable even for someone needing life insurance at age 62.
Permanent life insurance on the other hand lasts for an entire lifetime, but of course, as long as you keep up with paying your premiums. There are some plans you can pay up early, or either stop paying the premiums and take a lower death benefit.
The other benefit of permanent life insurance is that it acts as an asset as it will accumulate value in cash.
This means you will have an investment arm of your insurance policy that can be tapped into at retirement or for a spouse to use once you pass away.
Recently there has come on the market what is called Permanent Term, and it is a permanent policy that is not designed to accumulate a cash value. It is the least expensive way to get a term policy without having to worry about the policy expiring early.
One of the things that is great to do ahead of time before you get too deep into the process is to figure out how much insurance (death benefit) you actually need.
We make it easy with our calculator which will help you make that determination.
What Is the Average Life Insurance Cost at Age 62?
Most people think that life insurance for people over 60 is very expensive but, term life insurance is relatively affordable and even more so if you start shopping for life insurance in your 50s, but it’s not too late to start. A male can obtain a $200,000 policy for $1237.
Whole life insurance on the other hand can be obtained for $1675 for a $50,000 policy. Of course, life insurance is dependent on multiple factors that rely on your physical health and well-being.
These rates are based on your average, non-smoking, sixty-two-year-old. Rates will vary depending on your level of health and physical well-being.
Look at these sample quotes for a $250,000 policy:
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For your information, the life expectancy of someone in the mid-sixties has increased by over 55% in the last 100 years. In 1901, the life expectancy for a 65-year-old man was 11.5 years and a female was 12.2 years for an average of 11.9 years.
In 2001 (the mortality tables currently being used by many life insurance companies) the life expectancy for a 65-year-old man was 16.8 years and for a female is 20.1 years for an average of 18.5 years.
What Can I Do to Get the Best Life Insurance Rates?
Once you have gotten the best life insurance rates at age 62 based on your current health, start working on any of the following habits, lifestyles, or things within your control to help you become a better risk for an insurance company.
You can always apply later for a reduced rate, or either buy a new cheaper plan altogether from a different company.
1. Stop smoking.
2. Start exercising or continuing to exercise.
3. Keep medical conditions such as high blood pressure under control, using medications if you have to.
4. Lose weight if you are overweight based on standard height and weight charts.
5. Drink more water – just a great healthy habit for our bodies.
6. No longer participate in hazardous occupations or high-risk hobbies or activities.
7. Don’t ride motorcycles.
8. Eat a heart-healthy diet.
What Is the Easiest Way to Get the Lowest Premiums?
Before you make any decisions, try to obtain a couple of quotes from different insurance companies. Each carrier will have different rates and different rating systems. You could receive drastically different quotes from different companies.
It’s your decision to spend your valuable time chasing individual quotes from all different types of companies, but that time would be better spent filling out our short quote form and letting us give you the lowest quotes from highly-rated life insurance carriers across the country.
Some insurance companies specialize in offering insurance at affordable rates to those with more prevalent diseases such as diabetes, while others offer more affordable rates to older applicants.
How Are Premiums Calculated?
Premiums are determined by a list of factors. So when applying be aware that your status on each one will impact your monthly payment.
But, don’t despair, a life insurance policy is still affordable and might be cheaper than you think.
Age isn’t the only factor that they look at, there are options for getting the lowest rates possible.
Aside from looking at your age, for a traditional life insurance policy, the insurance company is going to need to know what kind of health you’re in. After you fill out the initial paperwork, a paramedic will be sent to perform a medical exam.
This exam will consist of basic things like taking your weight, and blood pressure, taking a blood sample, asking health questions, and taking a urine sample.
If you’re looking to save money, it’s time to focus on your health.
Being overweight, or having high blood pressure or cholesterol can cause your monthly premiums to double.
If you want to lower your rates, spend some time exercising and following a healthy diet to shed a few pounds. Not only will it make your doctor happy, but it will also make your wallet thinner.
One of the best ways to save money on your insurance rates is to get off the cigarettes. Being considered a smoker will cause your rates to double or triple, regardless of the rest of your health. When applying for a life insurance policy, smoking sits at the top as a “rate-hiker”.
The Importance of Life Insurance
A life insurance policy is one of the wisest financial decisions to make for your loved ones, even at this stage of your life. One of the biggest reasons that people at the age of 62 look for a life insurance policy is to protect the heritage they want to leave.
If you want to leave your children with the investments and savings that you’ve been planning, you should make sure that they won’t get smothered by taxes, fees, and debt that you leave behind.
Every year we hear stories of children and loved ones who lost a parent or spouse unexpectedly. These people were left with either a mountain of bills an inheritance that was quickly drained because of taxes or paying for left behind expenses.
One of the best ways to make sure this doesn’t happen to your family is to purchase the perfect life insurance plan.
The Bottom Line – Know the Options for Life Insurance at Age 62
In today’s world, securing a life insurance policy at age 62 offers a myriad of choices tailored to individual needs. Whether considering term or permanent life insurance, the market presents both affordable and comprehensive options.
While many assume higher premiums for seniors, term life insurance remains reasonably priced, especially if initiated in the 50s.
Rates depend largely on health and lifestyle factors, and adopting healthier habits can significantly reduce these costs.
The life expectancy for individuals in their mid-sixties has impressively risen over the years, reiterating the importance of planning for the future.
For those desiring to leave a lasting legacy without burdening heirs with expenses, life insurance stands as a pivotal financial tool.
Ensure you compare offerings across insurers to identify the optimal policy that provides peace of mind for you and security for your loved ones.