Can you find affordable life insurance over 60?
…and even more specifically, is it possible to purchase a 30 year term life insurance policy if you are 60 – 65 years old?
The answer is…it depends!
Now I am sure you’re scratching your head right now thinking, well that’s not much an answer, oh great life insurance guru!
But it’s an honest answer.
Let’s take a look at all the factors that affect your insurability and the affordability of your premiums when you are 60 – 65 years old.
Life Insurance Over 60 is More Complicated – The Life Insurance Business is All About Risk
Life insurance underwriters assess the risk of insuring you for the term you want covered.
As you grow older the risk of dying is, quite simply put, greater. So, the question, “Can you find affordable life insurance over 60?” isn’t cut and dried.
It really does depend on what you think is affordable AND what your personal circumstances are.
Let’s take a look at the numbers right now to really get a bead on what this means to you in terms of dollars and cents.
An insurer’s profitability depends on how well it understands the risks it insures against, and how well it is able to reduce the costs associated with managing claims. The amount an insurer charges for providing coverage is a critical aspect of the underwriting process. The premium must be sufficient to cover expected claims, but must also take into account the possibility that the insurer will have to dip into its capital reserve. If the insurer is forced to dip into its capital reserve, then it faces an added cost because the capital reserve is supposed to earn a return. Underwriting Risk, Investopedia
Can You Find Affordable Life Insurance Over 60? Your Health Matters
If you’ve been reading my posts, you know all about life insurance rate classifications. If not, let me fill you in. The healthier you are, the more life insurance companies will reward with savings on your premiums.
Someone who is a athletic with balanced blood work and a clean family history when it comes to genetically inherited diseases, will likely obtain a preferred plus rating. This translates in much more affordable monthly payments.
On the other hand, maybe you have a medical condition that only qualifies you for a standard rating. This means you will pay more for your premiums.
Real Life Samples 20 Year Term – How Your Health Affects Your Premiums in Dollars & Cents
There is no better way to illustrate just how much your classification can affect your rates than by showing you what it looks like on paper. Let’s say I have a 60 year old client who has been approved by Banner for a 20 year term and $250,000.00 in coverage.
An underwriter assesses health and habits to determine what his monthly payments will be. Here are the results for three very different sets of circumstances:
A lower health rating means that you might pay up to 20% more for your coverage. When you apply for a fully underwritten life insurance policy — one that requires you to take a physical, give a blood sample and provide a urine sample — you’ll also be asked a series of questions from your insurance provider that will include questions about your family’s health history. The Street, Life Insurance Isn’t a Lost Cause for Those with a Spotty Health History
Sample 1: 60 Year Old Male Non Smoking Client with Preferred Plus Rating$114.00Approx. Per Month$27360.00Approx. Over 20 Year TermSample 2: 60 Year Old Non Smoking Client with a Standard Rating$205.00Approx. Per Month$49200.00Approx. Over 20 Year TermSample 3: 60 Year Old Smoking Client with a Standard Rating$467.00Approx. Per Month$112080.00Approx. Over 20 Year Term
OUCH ! Your Health is Really Worth Thousands
Wow! As you can see those premiums differ SUBSTANTIALLY! The monthly numbers mask just how much more you’ll pay if your health is not up to snuff or if you smoke.
To put it into perspective, over the 20 year term a healthy client with a preferred plus rating will pay a staggering:
$84720.00LESS than a client in standard health that smokes.
This is Why an Independent Agent is So Important!
Hey! Fear not. I know those numbers look a little scary.
If you have a medical condition and you’re looking for a certain type of life insurance for over 60, a seasoned independent agent, like those at Huntley Wealth, can help you navigate through choppy waters.
Although your health classification is VERY important, not all insurers approach medical conditions the same way. Huntley Wealth knows the ins and outs of the companies and could save you thousands – EVEN if you smoke. Call us today! 888-603-2876
20 Year Term Isn’t Enough Coverage – I Still Want a 30 Year Term
Well I have some good news AND some bad news (depending on how you look at it).
The good news is, if you are looking for life insurance over 60 you may still qualify for a 30 year term.
Remember ladies and gentlemen, you are asking a life insurance company to offer you the benefits of term life insurance into your 90’s.
There is a very strong chance that you will die during the term, which means the life insurance company has every reason to believe your beneficiaries will receive a payout.
The bad news is, at the time I wrote this article (May 21st 2017) there is only one company that offers a term policy for 30 years. It’s Americo Financial Life and Annuity – and even then you can only buy term life insurance until age 61.
At 60 – 61 You May Still Be Able to Get a 30 Year Term, But It’s Gonna Cost Ya!
Americo will cover a 61 year old male non smoker in standard health for $693.50 per month. This would provide him with $250,000 of coverage for 30 years.
Hmmmm. Not exactly friendly price-wise, unless you are pretty well off to begin with. This is why I would opt out of term life insurance altogether for this particular client.
Whaaaat? But Chris you said term is the right choice for most clients! You’re backtracking.
Nope! When I said term life insurance is right for most people, most of the time, I meant it. That being said this is one of those times where it doesn’t fit the bill.
If this client came to Huntley Wealth looking for 30 year coverage, I would steer him towards a Guaranteed Universal Life Insurance policy.
Guaranteed Universal Life Insurance, A Smart Alternative to 30 Year Term
Huntley Wealth offers Guaranteed Universal Life up to age 121.
Guaranteed Universal Life Insurance is the middle ground between whole life insurance and term.
There is no build up cash value or high administrative fees so it’s affordable. It’s also flexible enough for you to tailor the death benefits to your particular needs.
Policies are set up to cover you to a specific age, so if you are 65 and looking for 30 years of protection I would recommend Guaranteed Universal Life Insurance until age 95.
If you aren’t able to qualify for 30 year term and need the coverage, this is a fantastic option because it’s a fraction of the cost of whole life insurance.
IMPORTANT NOTE: When I say “life insurance TO age 90, 95, or 121” in this article, I’m talking about purchasing coverage when you’re younger. Coverage LASTS until you are 90, 95, or 121. We’re NOT able to insure individuals over age 90!
Getting the Best Life Insurance Rates Over 60
Well, there’s a big misconception out there that once you reach the age that you can join AARP and buy their life insurance, that’s the way to go.
The best way to save 10% – 30% or more on life insurance is by using an independent agent with savings strategies like:
- the Pennies from Heaven Strategy
- the Special Case Roadshow (Massive savings for people with health conditions)
- Laddering your Term Maturities
You can read about ALL these and 25 other ways to save on life insurance by clicking here.
So How Does Guaranteed Universal Life Insurance to Age 90 Differ from 30 Year Term?
Finding 30 year term life insurance over 60 is no easy feat and even if you qualify for it, it’s going to be extortionately expensive. I am sure after seeing the cost you are considering taking me up on Guaranteed Universal Life Insurance to age 90.
With Guaranteed Universal Life Insurance you are basically paying for guaranteed level death benefits and premium payments to age 90.
It’s technically permanent life insurance, but you don’t overpay for the cash accumulation feature that is attached to whole life policies. This is the reason it’s less expensive along with the fact you don’t have the same administration fees.
Here are a few sample quotes from Protective life insurance for male non smoking clients that qualify for standard and preferred plus health ratings:
$250,000 Guaranteed Universal Life Insurance No Lapse Til Age 121 60 Years Old Standard: $475.16 Preferred Plus: $384.02 61 Years Old Standard: $503.54 Preferred Plus: $410.17 62 Years Old Standard: $533.51 Preferred Plus: $439.44 63 Years Old Standard: $566.08 Preferred Plus: $468.78 64 Years Old Standard: $599.55 Preferred Plus: $500.34 65 Years Old Standard: $634.67 Preferred Plus: $532.38
*These quotes are accurate as of 5/22/17 and are subject to change.
Huntley Wealth Can Find You Life Insurance Over 60!
If you are looking for life insurance over 60 there are great options out there. At Huntley Wealth we have more than a decade of experience finding the best possible premiums and coverage for high risk cases.
Health conditions dramatically affect what your premiums will look like.
…but our agents know all the ins and outs of the underwriting for specific companies. Remember each insurer treats medical conditions differently and we’re in the know about which companies are most lenient for your particular health concerns.
It’s not too late to protect your loved ones! We have access to dozens of life insurance companies and will find you the best possible rates. Call today! 888-603-2876
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