When you think of the common profile of someone buying term life insurance, you generally think of a young family, either a newlywed or a family that has young children. Typically, you’re looking to protect your family financially in the event of a tragic loss of the breadwinner.
You don’t typically think of someone over the age of 60, or even 70, wanting to buy term life insurance but believe it or not, it’s more common than you think.
However, you’re probably wondering why would somebody in their golden years want to buy a term life insurance, aren’t they already self-insured?
Well, typically that is the case. There are some instances where over 60-year-olds need to buy term life insurance. Here are a few recent instances that I experienced:
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Recently I took a phone call from a gentleman who is in his mid-60s and was contemplating retirement. He had worked at his job for a number of years and had a very nice pension.
As with any pension, the only downside was what would happen if he were to die prematurely. His spouse would be left with far less than he was taking. He could always take 100% of the pension on his and his spouse’s life but then that in turn, made his monthly benefit much lower than he liked.
- So what was the alternative?
- What are his options?
One option is to buy a term life insurance policy in the event that he passes away prematurely. Now you’re probably wondering what type of insurance carrier is going to approve someone for a term policy for x number of years. Believe it or not, there are a few but it does depend on your age, obviously, your health, obviously, and also the state that you reside in, not so obvious.
In this particular case, Transamerica was going to write him for a term policy for the amount that he was seeking. Another option that he had, which actually ended up being a little cheaper, was buying a level-term policy. In this case, you buy a guaranteed universal life policy set at a determined age. When we compared the two, it was actually cheaper to buy the guaranteed universal life policy than the standard term.
This is just another prime example of working with an independent insurance agent who can explore multiple options to get you the best and cheapest term life coverage you deserve.
A Second Marriage
Recently I had two instances where I had a 60-year-old and a 70-year-old who both wanted to buy term life insurance. While their ages differed by a decade, the one thing they had in common was they had both remarried. Both wanted to have some type of life insurance protection for their new spouse.
In one case, the gentleman was healthy and had no major health conditions while the other did have a high-risk condition that had us do some more research to find the right carrier. In both cases, we were able to get the life insurance coverage even though you wouldn’t think it would be easy to get life insurance for a 60-year-old or even life insurance for a 70-year-old. It’s just a constant reminder that there are typically always options when you work with an independent life insurance agent.
If you are a senior looking for cheap term life insurance, don’t give up. We’ve been able to get seniors approved for life insurance from those rated Preferred Best to those having previous health conditions that even though the rate is Standard, at least they got the coverage that they were seeking.
Sample Term Life Insurance Quotes for Over 60-Year-Olds
Here’s a look at two sample quotes for someone in their 60’s. The first is a 20-year $250,000 term life policy for a 60-year-old.
Here’s a sample quote for a 60-year-old wanting to buy a $250,000 30-year term policy. Yes, even a 60-year-old can buy a 30-year term policy!
Are you over the age of 60 and in need of a term life policy? Let us help! We work with all the best life insurance companies in the industry today. We specialize in getting life insurance policies for anyone looking for life insurance who is over 50. This allows us to know that age group and their specific needs. While we have complete guides for life insurance by age, we have specific information on this site for people who are:
Because every insurance company is different, you could get drastically different rates depending on which company to get the quotes from. Some insurance companies specialize in insuring applicants over the age of 60, while other companies are automatically going to decline you for insurance coverage.
Most people over the age of 60 assume that they no longer need a life insurance plan, but your age doesn’t determine your life insurance needs. Don’t assume just because you’re getting close to retirement means you don’t need insurance.
Now you need to calculate your insurance needs, because you’re in a later stage of life, and your needs are very different from other applicants. First, look at any debts that you would leave behind. You may not have a lot of debt, which means that you can consider getting a smaller life insurance plan.
Another factor that you should look at is if anyone currently relies on your salary to pay for basic expenses. If you’re in a stage of life where nobody relies on your paycheck, you can get a much smaller insurance plan.
Even if you’ve been turned down for coverage in the past, we can give you several options for affordable life insurance coverage. If you’re in poor health or have several pre-existing conditions, there are life insurance options. One choice is to go with a no-exam life insurance plan.
No exam life insurance is more expensive, but it’s worth the extra cash to have insurance protection. Shopping around for a cheaper insurance company can help you save money on no-exam plans, but regardless of the company, it’s going to be more expensive.
Also, no exam plans have ceilings on how much insurance you can buy. Each company caps its plans at different limits, but most are around $250,000.
The Bottom Line
The perception that term life insurance is predominantly for young families and breadwinners is, in many ways, outdated. As explored in the article, there are varied reasons why individuals over the age of 60 or even 70 might seek term life insurance, from pension protection to providing for a new spouse in a second marriage. It is paramount for seniors to understand that age doesn’t negate the need for life insurance, and they shouldn’t be deterred by the misconception of it being unattainable.
With the right insurance agent and a comprehensive understanding of the market, suitable insurance options can be identified, and tailored to the individual’s specific needs. From no-exam life insurance plans to regular policies, seniors have a myriad of choices, highlighting the importance of early planning and diligent research. Whether it’s for debt clearance, family protection, or any other reason, life insurance remains a pivotal financial tool, regardless of one’s age.
FAQs – Life Insurance Over 60
Life insurance over 60 provides financial security to dependents and loved ones, ensuring that funeral expenses and any outstanding debts are covered. It can also offer inheritance benefits and peace of mind in retirement years.
Qualifying for life insurance over 60 may be more challenging due to age and potential health issues. Insurers may require medical examinations and consider pre-existing conditions, but there are policies specifically designed for this age group.