How do I find the best life insurance for seniors over age 60?
It really comes down to solving three key problems:
Life Insurance for Seniors Over 60
I know many of you didn’t think you’d need life insurance after age 60, but let’s face it… we’re all living longer.
So I’ll make you this promise…
Whether you’ve just realized your term policy is about to expire, or you need life insurance for estate planning or to pay for final expenses, stick with me for a few minutes and I’ll answer all your questions so you can find the right plan at a premium you can afford.
Tips, Tricks & Insider Information: Best Life Insurance for Seniors Over 60
You’re likely wondering how to approach this thorny issue without having to spend a small fortune to get coverage.
But have faith! We’re going to provide you with buying tips so you can find the best life insurance for seniors over 60, 65, 70…and even 80 years of age!
For many of you, this will likely be the last life insurance policy you’ll buy. Which means that it’s all the more important to make sure that it’s the best policy for your individual needs.
I imagine that the price tag is VERY important too!
So let’s take a closer look at how life insurance costs now that you are over age 60. I am also going to dig into the best type of life insurance for seniors and how to find the lowest premiums!
Did you know?
People in America today can expect to live longer than ever before. Once you make it to 65, the data suggest that you can live another 19.3 years, on average, according to the Centers for Disease Control and Prevention (CDC). For many, senior living includes carefully managing chronic conditions in order to stay healthy. The 15 Most Common Health Concerns for Seniors, Everyday Health
3 Steps to Getting the Best Life Insurance for Seniors
Look, the honest truth is as we get older, life insurance becomes more expensive.
The radio advertisements that tell you: “Johnny got a policy for $17 per month…” are talking about 30 or 40 year olds usually.
Now, we can find just about anyone a policy they can afford, but it may or may not be for the amount of coverage you expected.
Step 1: Adjust Your Expectations: Get a “Ballpark” Quote
So step 1 is to get your expectations in line. And I believe showing you some “best scenario” rates will help you do that.
Here are sample quotes for a 10 year term policy, which is the lowest cost type of life insurance policy: (Rates slightly less for women)
Rates quoted above are for a male, non-smoker, quoting best health class and are not an offer of coverage. Each individual must apply to see what rate he/she qualifies for. 11/1/18
If you would like more ballpark quotes, we’ve published some great sample term life insurance rates for seniors.
Step 2: Determine WHY You Need Coverage
Now you might be thinking:
“Determine WHY I need coverage? Isn’t it obvious? I want to leave money when I die.”
But NO, it’s not obvious… your answer matters!
Determining WHY you need coverage will help answer how much coverage you need and the type of plan. And while there are many reasons a senior would purchase a policy, the important thing to remember, is that there is an affordable policy for almost any situation.
Reasons You Should Consider Life Insurance Over 60
Fully understanding your specific needs is the first most important step. Let’s take a look at some of the most important reasons seniors might need life insurance including:
- Offsetting loss of retirement income upon spouse’s death (Pension max)
- To pay off all personal debts such as credit cards and personal loans after death
- Provide income in respect of a decedent taxes on IRAs, 401(k)s etc
- Allow you to provide income for the care of a disabled child or spouse
- Enables you to use cash surrender values (For permanent life insurance policies only) as a source of emergency funds during life
- Use the cash surrender value as a whole or partial annuity to provide additional guaranteed lifetime income
- Provide a financial legacy as a gift to grandchildren
- Offer a gift to charity at death or prior if desired
- Provide the opportunity to spend all of your money and still provide a legacy to your children and/or grandchildren
- Provide creditor protection as life insurance is creditor proof in most states
- Use the policy to collateralize loans such as personal debt or the amortization on a mortgage
Ok, do you have the answer WHY you need coverage? Now ask yourself:
Will I need this coverage for a short period of time, such as 10 to 20 years, and then the insurance need will disappear? Or will I need this coverage for the rest of my life?
Estate Reasons for Life Insurance Over 60
Many seniors have built up sizable estates and can use life insurance for a variety of reasons such as:
- Immediate cash liquidity so heirs can pay estate and inheritance taxes
- A greater degree of flexibility when it comes to estate planning
- To provide the means for parents to balance uneven distributions of property or business interests to children
Life insurance is a great estate planning tool, when used with some foresight! This is why it’s so important that you speak with an independent agent.
We know the ins and outs of the strategies you can use to help mitigate taxes.
Having enough life and disability insurance should be a key element of your personal financial game plan. With some advance planning, you can collect life and disability insurance proceeds free of any federal taxes. How to avoid the Federal Estate Tax When Collecting Life Insurance Proceeds, Market Watch
Business Reasons: Seniors Need the Best Life Insurance
Many seniors are still working and operating businesses. This could be sole proprietorship or a larger company where you have partners.
Life insurance is vital to protect your heirs, you as an owner and your partners. Some of the instances where life insurance is vital include:
- Use as a means to offset loss of key person in a small business
- To Provide the necessary funds to buy out interests of a deceased business partner or co-shareholder
- To use the dividends as a tax-free source of supplemental retirement income
Got the answer? Great! If so, move on to step 3…
Step 3: Get a FREE Life Insurance Quote for the Type You Need
If you’ve stuck with me this far, you should have an idea of how much life insurance costs over age 60, and you’ve determined the REASON you need coverage.
The last step is look at this quick guide below and learn the TYPE of coverage you most likely need, and then request a free quote to see what it will actually cost you.
Short Term Needs: You Need Term Insurance
If you answered that you need life insurance for short term needs like:
- Income protection
- To pay off bills like credit cards or a mortgage
- For a short term business deal or loan
Then you probably only need coverage for 10 to 20 years, so I suggest you look at “term life insurance.” Click here to view rates.
Longer Term Needs: You Need Permanent Life Insurance
If you need coverage for longer coverage needs like:
- To help pay income taxes upon your death
- To provide a legacy to my children or grandchildren
- To give to charity
Then you need a quote for a permanent plan like whole life insurance or universal life insurance.
Click here to view rates.
*Our agents and partners are also experts at helping you determine the amount and getting you approved if you have any health conditions.
And now let’s dive deeper into helping you understand the reasons for life insurance, more information about the different types, and some savings tips!
Best Final Expenses Life Insurance for Seniors
Some seniors simply want smaller policies to cover their final expenses. The average funeral in American can range from $8,000 – $10,000. You won’t want your surviving family members to incur the cost so you can use a policy to:
- Pay all funeral and burial costs associated with your death
- Cover all final expenses including debts
This is why it’s so important to consider your reasons carefully before buying a policy, so all your bases are covered.
Quick Tip: If you’re interested in finding out who my picks are for the top life insurance companies for seniors, you can click HERE!
So What TYPE of Life Insurance Works Best Over Age 65, 70, 75 & 80?
When it comes to finding the best life insurance for seniors over 60, there are a variety of choices available to you. It all depends on your needs, your current health and budget considerations.
Some policies will not be suitable for your needs, so you need to consider all your options carefully.
We will give you a quick preview of all your life insurance choices available for seniors to help you decide which ones might address your particular needs.
**Life Insurance Saving Tip: Keep in mind that you can also bundle 2 or more policies together to match your specific needs and save money at the same time. You might purchase 1 policy to cover your the financial security of your dependents for the rest of your life. But, you might als need other policies to cover financial issues that crop up for shorter periods of time. Buying several policies of different lengths will save you money instead of buying 1 large policy to cover everything.
When Looking for Life Insurance for Seniors, What’s the Best Fit?
Let’s look at the types of life insurance available in more detail to help you decide which works best for you as a senior!
Knowing which policy is right for you is crucial in finding the best life insurance for seniors over age 60.
Your life insurance policy choices include:
- Term Life Insurance
- Permanent Life Insurance
- No Medical Exam Life Insurance
- Final Expense Life Insurance
- AARP Life Insurance
FIND OUT IN 2 MINUTES WHAT YOUR RATE MAY LOOK LIKE
Our agents have NO sales quotas, so we’re able to spend all the time necessary with every client…. there’s no hurrying off to the next call with our agents.
Term: Is it the Best Life Insurance for Seniors Over 60?
Term is the most basic life insurance and probably the type of policy many of you bought when you were younger. If you are not familiar with how term life insurance works, I will sum it up:
- Term life insurance pays death benefits only
- You buy a policy in chunks of time, or a term such as 10, 15, 20 or more years.
- Most policies come with a conversion feature This allows you to convert the term policy to an equivalent amount of permanent life insurance without having to take a medical exam. This is a very important feature, as it’s very likely your health will decline over time. Let’s say your term is about to expire. If you’re still in the conversion option period, then you should consider doing so. The good news is that you can so without having to take a medical exam. The cost of the policy will be solely based on your age at the time of conversion.
Term life insurance is a great choice when it comes to finding the best life insurance for seniors over age 60. It’s also the most affordable option!
Best Life Insurance for Seniors Over 60 – Term is AFFORDABLE!
Term is the best choice for most seniors who want larger policies at affordable rates. It’s also the best policy for seniors with good health, average health or those with moderate medical conditions.
Term life insurance is the least expensive of all the different types of life insurance available. Term addresses most life insurance needs.
Please note that a medical exam is required as part of the application process.
However, the one drawback is that some term periods aren’t available after certain birthdays.
Here are the term cut off periods in relation to your age:
- 30 and 40 Year Terms are no longer available after age 60: You can choose from 10, 15, 20 25 year terms
- 25 Year Terms are no longer available when you turn age 66: You can choose from 10, 15 0or 20 year terms
- 20 Year Terms are no longer available after age 70: You can choose from either a 10 or 15 year term
- After age 75: You can only obtain a 10 year term or less
Permanent: Is it the Best Life insurance for Seniors Over 60?
Which seniors should consider permanent life insurance?
A permanent life insurance policy is the best choice for most seniors who want larger policies and need coverage for their entire lifespan. We generally only recommend permanent policies for those who have:
- A large income
- Require an additional tax shelter because they’ve maxed out their IRA or 401(k) contributions
- Have a large estate and require liquidity
Permanent life insurance policies include both Whole Life and Universal Life. These policies vary considerably from company to company as there are many hybrid forms of these policies.
Please note that a medical exam is a requirement as part of the application process.
The Main Differences Between Term and Permanent Life Insurance
The main differences between a permanent policy and a term policy are:
- Lifetime coverage is offered by Permanent life insurance
- Permanent policies cost much more than a term policy
- Permanent life insurance not only provides death benefits but also offers a cash value accumulation feature
- Cash value accumulation grows over time through the addition of premiums and a guaranteed interest component
- The cash value accumulation can be borrowed against. Remember if you do this the death benefits will be reduced based on the amount borrowed and interest if not repaid.
There are two main permanent policies to choose from: Whole Life and Universal Life. Whole life is restrictive, offering few choices over the life of the policy. Universal life policies are more flexible and allow you to choose your payment methods, reduce or increase death benefits and to make other various investment decisions.
No Medical Exam: Is It the Best Life Insurance for Seniors Over Age 60?
We recommend this policy for seniors with:
- Moderate or more serious health issues
- Those squeamish about needles
- Those who don’t want the hassle of taking a medical exam
- Clients who need insurance quickly
NOTE: PLEASE DON’T MAKE ANY ASSUMPTIONS ABOUT YOUR HEALTH BEFORE CHOOSING THIS POLICY – TALK TO THE EXPERTS AT HUNTLEY WEALTH FIRST.
There many different types of no medical exam life insurance. Typically companies will ask 5 or 6 health questions and then your policy will be approved in 48 hours or less.
Insurance policies are available both as term and permanent, but for the most part, most are issued as term.
Typically no medical exam policies only offer face value up to $250,000. However, there are a handful of companies which offer up to $500,000 in coverage. We also know of one company which offers coverage up to $1,000,000 – AWESOME!
Do no exam policies cost more?
On average the answer would be yes…
Quite a bit more…
The good news is that with so many companies now offering no medical exam life insurance, rates have dropped dramatically over the years. You can even find premiums that are competitive with similar term policies.
Final Expense Life Insurance: Is it the Best Life Insurance for Seniors?
Final Expense life insurance comes under various names such as:
- Final Expense Life Insurance
- Burial Insurance
- Guaranteed Issue Life Insurance
- Simplified Issue Life Insurance
We would recommend final expense life insurance for those seniors with:
- Major or life-threatening health issues
- Those who require only small amounts of coverage
Life Insurance Tip: If you are still relatively healthy and are looking for smaller policies to cover your final expenses, then we would suggest you consider a term policy as final expense policies can be fairly costly.
AARP Life Insurance: Is It the Best Life Insurance for Seniors?
As a senior, it’s very likely you have heard of AARP (American Association of Retired Persons) life insurance and may even be considering using it for your needs.
I generally don’t recommend AARP life insurance because it’s not usually the best life insurance for seniors over age 60. Unfortunately, AARP policies have a number of very notable drawbacks.
First, we would like to say that AARP does have some good points – so let’s check them out now:
- No medical exam required
- Coverage for people with disabilities
- Provides term, permanent and guaranteed issue coverage
- The life insurance is provided through New York Life which is one of the best insurers in the industry
That being said, there are also many negative aspects that you should be aware of:
- You must be a member and pay a fee in addition to your premiums
- Premiums INCREASE EVERY 5 YEARS
- Policies are much more costly than equivalent term or permanent policies
- No competitive quotes are offered because you’re consulting only ONE insurer
- Death benefits max out at $100,000
- Only offers term policies up to age 80 (most other insurers offer term up to age 85)
I urge you to read my article about AARP today. You will find out much more about the pros and cons of AARP life insurance before you sign on the dotted line.
“FIX” YOUR UNIVERSAL LIFE RATES
Want to know the problem with regular “universal life”? If the cash value decreases too low, your policy can lapse and you can lose all your money. That’s why we only sell GUARANTEED UNIVERSAL LIFE. It offers lifetime guaranteed level premiums, and as long as you pay your premiums, your policy can’t cancel. It works just like term, but for life!
Looking for the Best Life Insurance for Seniors? Don’t Forget There are Waiting Periods!
These no exam policies have a waiting period that range from 1 – 3 years.
This is the period of time you must survive before your beneficiaries will receive full benefits.
Otherwise, your heirs will only get the premiums you paid to date plus a small amount of interest should you die before the end of the waiting period.
Most of these policies do not require a medical exam and some don’t even ask any health questions, so this is a way to weed out people who try to get life insurance when they are ill.
These policies also tend to be more expensive because the company is taking a greater risk to insure you.
Savings Tips: Finding the Best Life Insurance for Seniors
1. Always Use an Independent Life Insurance Agent
We’ve discussed this in detail above but cannot stress this enough when it comes to saving money!
2. Consider Term Life Insurance as your First Choice
Term life insurance is the most affordable form of life insurance for seniors in their 60’s, 70’s and 80’s. For the most part, a term policy will cover the majority of your needs.
3. Premium Payments
How you pay your premiums can also save you a lot of money. Most insurers allow you to opt for monthly, quarterly, semi-annual, annual or a lump sum payment. The fewer premiums you pay, the more you save because otherwise, you will also have to pay more for administration costs. A lump sum payment offers the most savings. Monthly payments are the most expensive.
4. Improve your Health
Anything you can do to improve your health before you take a medical exam has the potential of giving you a better rating which means you can save more money. Shed a few pounds, quit smoking, exercise & change your diet to improve cholesterol and blood pressure levels.
5. Buy Only What You Need
The higher the face value of the policy you buy – the more it costs. Don’t over insure yourself!
6. Consider Purchasing Joint Survivorship Policies
If you want coverage for both you and your life partner, you might consider buying a joint survivorship policy.
7. Bundle Life Insurance Policies
This tactic is also known as layering life insurance. This simply means you buy 2 or more policies to cover different financial needs for different lengths of time. This eliminates the need for 1 massive policy. Multiple policies combined are cheaper and you can also cancel them when you no longer need the coverage.
GOOD NEWS FOR SENIORS…
Life Insurance Companies are More Flexible Than You Think!
If you are looking for the best life insurance for Seniors Over 60, you might think that most life insurance companies will penalize you for things such as:
The good news is – this is simply NOT TRUE!
In fact, for a handful of companies – the reverse is true.
That’s right! When you reach certain milestone birthdays, these companies will allow for bigger builds, higher cholesterol and blood pressure levels. You actually get a break and aren’t penalized after all!
Underwriting guidelines vary significantly from insurer to insurer. Some companies are much more lenient AND PROGRESSIVE when it comes to a variety of health issues.
This also includes diabetes, certain types of cancer, heart issues and a host of other medical conditions.
These more lenient companies have SPECIAL GUIDELINES for people looking for the best life insurance for seniors over 60 and older.
Never assume that because you have a health issue you will be declined or have to pay an arm and a leg for a policy.
SAVE UP TO 73% ON LIFE INSURANCE!
Think saving money on life insurance is as easy as getting a quick online quote? Think again! You need an expert guide. We know the right companies for every age, health issue, and need. It’s quick and easy! Get started with a free life insurance quote now!
Looking for the Best Life Insurance for Seniors Over 60?
We work for our clients and not the life insurance companies. As independent agents, we represent virtually dozens of insurers and have access to over 40 of the top rated companies!
Our sole purpose is to help seniors find the right policy and at best possible rate.
The good news is, we form long term relationships with all our clients. Over the years your insurance needs are bound to change and we understand this.
We can help you adjust your insurance coverage to reflect your actual needs as you grow older!
Our Process to Find the Best Life Insurance for Seniors over 60!
My NUMBER 1 MONEY SAVINGS TIP, if you are looking for the best life insurance for seniors over 60, is to use an independent life insurance agent!
There are only 5 ways a senior can buy life insurance:
- Directly through a life insurance company or Captive Agent
- Through life insurance call centers
- Through their home or auto insurer (providing they sell life insurance)
- Through an independent life insurance agent
I strongly urge you to never use the first 4 options because you will not get the best policy nor will you save money!
Captive or Company agents only represent a single insurer. You are bound by the underwriting guidelines of that company and will have to pay what they quote.
Their underwriting requirements may also be very conservative which means you run the risk of being declined altogether.
Life insurance call centers require quick turnarounds from their agents. They generally favor only a few companies so they will not give you personalized or ongoing service. Which means you will not get the best rates with a life insurance call center.
Using an existing home or auto insurer, which offers life insurance is the same as using a captive or company agent. You will not be given a competitive rate.
As for solely relying on online resources…well you run the risk of having your information sold and missing out on the competitive an customized quotes we offer you.
ALWAYS be sure to speak with an independent life insurance agent like those at Hutley Wealth. We’ve been in the business for over a decade, work with dozens of companies and know the ins and outs of the underwriting procedures for the insurers we work with. This will ensure that you get the BEST possible rates.
We will discuss your situation in detail to ascertain your individual needs. We will perform all the competitive shopping for you and will provide you with a variety of life insurance solutions so you can make an informed choice.
We also have the ability to negotiate better deals with life insurance underwriters which makes us unique.
Independent agents can also help you with special needs ranging from small policies to complex estate and business life insurance solutions. We can help you with minor or serious health issues, dangerous occupations or hobbies and other high risk issues to find the most lenient and affordable companies for your circumstances.
Independent life insurance agents do not just sell you a policy and cut you loose. We keep in touch to see if your needs have changed and are always available to answer any questions you have.
HEALTH ISSUES? WE’LL HELP GET YOU APPROVED!
We specialize in helping individuals with high risk medical issues. You name it, and we’ve seen it. We’ll help you get approved quickly at a rate you can afford. Get started with a free life insurance quote now!
*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.