Which Life Insurance Should You Buy If You Are over 60?

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Buying life insurance doesn’t necessarily correlate to your current age, but instead to your overall circumstances. However, buying life insurance when you are in your 40’s compared to your 60’s will make a difference in the premiums. In this article, I will attempt to clear up some concerns when it comes to life insurance needs, the rates you can expect to pay, and the type of policies that are available to you if you are over the age of 60. Let’s find out more!

Related: 5 Offbeat Ways to Save Money on Life Insurance

Do I Need Life Insurance If I’m over 60?

It will greatly depend upon your life’s circumstances. The typical buyer we see is a 30-year-old who just got married, bought a house, or is in the process of raising a family. He/She typically buys a 30-year term policy to protect loved ones should something happen. It’s used as an income replacement tool since your 30’s is when you’re just starting out, so are typically carrying the most debt and have fewer resources.

Death to the breadwinner at this age can have a catastrophic effect on a spouse who doesn’t work and is left to raise young ones alone. The typical life plan, of course, is to pay your mortgage in 30 years, save enough for retirement, and raise children that can support themselves. At that point, most people no longer need a life insurance policy and can drop it. But life doesn’t always go according to plan, does it? So I have a few questions below that should help you decide if you may need life insurance, even if you are over 60:

  • Do you have an unpaid mortgage?
  • Did you buy a new business and are looking for a key person life insurance?
  • Are you divorced and need to purchase life insurance as part of the divorce settlement?
  • Are you still working and have people who depend on you financially? For example, even if your mortgage is paid off, maybe you pay your son’s law school tuition.

Your circumstances may vary, but let me offer one critical question you should ask yourself to determine the need for a policy: “If I pass away tomorrow, will my loved ones suffer financially?” If you answered no, you don’t need life insurance. Otherwise, read on.

What Type of Life Insurance Is Available If I’m over Age 60?

There are two basic types of life insurance policies: term and permanent. They both have different options, such as simplified issue, final expense, or universal life, but they all fall into the category of either term or whole life. By knowing more about your circumstances, overall health, and age, we can get a clue of which type of policy is best for you. I will go over and review the most common policies for those ages 60 and over.

Related: Why Do You Get Conflicting Life Insurance Rates?

Term Life Insurance for Those Over 60

Term life insurance is often called “pure insurance” because it offers protection for a specific period without any savings component. It’s the simplest to understand and the most economical coverage you can buy when compared to whole life. The most common terms are 10, 20, and 30 years. The premiums and the death benefit stay the same throughout the contract period (term).

At the end of the term, you can convert the policy to whole life, renew it on an annual basis, or drop it. If you are 60 years old, there are a few companies who can offer up to a 30-year term, but most likely the most extended term will be 25 years. This policy will require you to go through an exam. The rate you will receive will be related to the exam results along with your current health, medication usage, and driving records, among many other parameters. The healthier you are, the better rates you will get and vice versa.

Related: Getting Life Insurance with Pre-Existing Conditions

Who Should Consider It?

Those that are:

  • In relatively good health
  • Looking for the most economical coverage
  • Need it for a business loan (such as key person life insurance)
  • Need it for a specific period because of a mortgage or other obligation
  • Interested in the death benefit only

Term Life Sample Monthly Rates

10 Year Level Term Male

AGE$100,000$250,000$500,000
60$28.55$60.13$112.66
61$32.59$67.67$126.61
62$36.84$74.64$141.34
63$38.67$83.04$157.64
64$40.51$92.09$178.06
65$42.35$96.69$187.25
66$54.34$117.67$219.71
67$64.05$130.39$237.25
68$69.21$145.38$256.50
69$73.41$162.15$283.01
70$79.36$178.06$322.99

10 Year Level Term Female

AGE$100,000$250,000$500,000
60$23.39$42.14$75.68
61$25.11$46.23$83.85
62$27.00$50.96$92.38
63$29.07$56.14$101.55
64$31.68$61.28$112.34
65$33.42$66.86$124.27
66$37.58$73.75$136.74
67$41.71$80.63$147.06
68$44.98$89.66$159.89
69$49.26$98.90$177.41
70$55.48$108.34$200.38

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of May 2018 and are subject to underwriting approval.*

No-Exam Term Life for Those Over 60

No-exam life insurance is very similar to traditional term life. However, this will not require you to undergo an exam as part of the underwriting process. It’s more expensive than a regular term life because the insurance company is taking an extra risk when insuring you without reviewing your blood work. You are paying for the convenience of skipping the exam, and the maximum death benefit will not exceed $500,000. Besides, there is a handful of companies that offer no-exam policies for this age group, so you will not have many choices.

Who Should Consider It?

Those that:

  • Need the coverage as quickly as possible
  • Don’t need more than $500,000 in coverage
  • Don’t mind paying extra associated costs
  • Dislike being poked or going through a medical exam

Term Life No-Exam Sample Monthly Rates

10 Year No-Exam Male

AGE$50,000$100,000$250,000
60$29.05$36.15$68.32
61$31.25$53.86$114.61
62$33.97$59.17$127.31
63$37.32$65.80$142.58
64$41.44$74.00$160.89
65$46.45$84.06$182.72
66$75.86$145.50$354.43
67$84.75$163.28$398.88
68$93.46$180.71$442.46
69$102.05$197.89$485.39
70$110.55$214.89$527.90

10 Year No-Exam Female

AGE$50,000$100,000$250,000
60$21.22$27.47$48.22
61$22.51$34.34$69.15
62$24.14$36.93$75.62
63$26.17$40.44$84.24
64$28.70$45.08$95.48
65$31.82$51.06$109.82
66$61.12$116.11$283.02
67$66.24$126.35$316.68
68$71.40$136.68$346.45
69$79.48$152.75$372.56
70$83.88$161.55$394.56

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of May 2018 and are subject to underwriting approval.*

Guaranteed Universal Life Insurance for Those Over 60

Think of Guaranteed Universal Life (GUL) as a policy that lets you choose your coverage based on a specific age, rather than a particular length like term life offers. In other words, if you are 65 years old, the maximum term you can buy is a 25-year policy. If you buy a GUL, you can buy it up to age 90, 95, 100, 105, 110, or 121. These policies do not carry cash value, and the premium and death benefit will stay the same throughout the term length.

Who Should Consider It?

Those that are:

  • Interested in death benefit instead of cash accumulation
  • Need to have coverage up to a specific age, instead of a specific term length
  • Looking for a cheaper alternative to whole life
  • Part of estate planning

Guaranteed Universal Life Sample Monthly Rates

GUL to 90 Male

AGE$50,000$100,000$250,000
60$91.45$122.50$282.76
61$96.32$127.71$298.74
62$101.39$133.07$315.22
63$106.54$138.49$331.95
64$112.04$144.17$349.46
65$117.73$150.58$368.87
66$123.48$158.47$383.26
67$129.40$167.19$399.52
68$136.10$176.96$418.01
69$143.49$187.85$438.77
70$151.99$200.48$463.28

GUL to 90 Female

AGE$50,000$100,000$250,000
60$76.51$113.90$242.37
61$80.43$119.59$254.14
62$84.61$124.16$266.90
63$89.11$128.58$279.46
64$93.78$133.25$292.68
65$99.14$143.60$320.99
66$104.72$151.41$340.99
67$110.45$159.75$361.04
68$116.61$168.67$382.57
69$123.16$178.11$405.40
70$130.00$188.13$429.58

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of May 2018 and are subject to underwriting approval.*

Final Expense Life Insurance for Those Over 60

Final expense life insurance has one purpose: to cover the charges of affairs specifically related to your death. This would include anything from the burial expenses to medical bills. These policies are whole life policies, which means they have no expiration date and also have a cash savings benefit that you can borrow from in the future. The common death benefit amounts are from $5,000 to $50,000, with $25,000 seeming to be the sweet spot for most consumers.

Final expense is also considered a simplified issue policy because they do not require you to undergo an exam, and you only have a few health questions that you need to answer on the application. Even if you have diabetes or high cholesterol, you can still qualify for coverage.

The Federal Trade Commission figures that many funerals can cost well over $12,000. If you don’t have the prepared cash to pay for your burial or don’t want your estate to be taken up with fees incurred by your death, a final expense insurance plan may be for you.

Who Should Consider It?

Those that:

  • Need burial insurance only, and a death benefit not exceeding $50,000
  • Need a coverage that lasts for life
  • Are in average to a good health condition

Final Expense Life Insurance Sample Monthly Rates

Level Benefits Whole Life Male

AGE$10,000$25,000$50,000
60$41.65$100.83$181.40
61$43.67$105.89$209.57
62$45.86$111.34$220.48
63$48.25$117.33$223.45
64$50.91$123.97$245.74
65$53.87$131.38$260.57
66$57.13$139.52$276.85
67$60.63$148.30$294.40
68$64.44$157.81$313.31
69$68.57$168.12$334.05
70$73.05$179.32$356.44

Level Benefits Whole Life Female

AGE$10,000$25,000$50,000
60$34.74$83.56$164.91
61$36.30$87.45$172.70
62$38.02$85.35$181.32
63$37.72$89.49$190.70
64$39.36$93.61$200.73
65$41.01$97.72$211.33
66$43.44$103.80$222.07
67$45.86$109.85$233.02
68$48.29$115.92$244.82
69$50.81$122.22$258.02
70$53.24$128.29$273.24

Guaranteed Issue Life Insurance for Those Over 60

As the name implies, guaranteed issue life insurance (GI) is a policy that ensures your acceptance, despite your health condition. It is the last resort coverage for those who can’t get a traditional life insurance policy because of past or current health conditions. These policies do not have an expiration date, the premiums, and death benefit stays the same throughout the life of the policy.

The most significant caveat with GI policies is that they do not pay if you die within two years after purchasing your plan.  (Side note – this is called a graded benefit clause and you want to pay attention as some companies have 2-4 years before they pay the full death benefit.)

If you die in the first two years and it is not accident-related, all they will pay is your paid premium, plus 10% in interest. The full death benefit will only be paid after you have had the policy for two years. The maximum benefit is usually $25,000, and you must be between the ages of 50 and 85 to qualify.

Who Should Consider It?

Those that:

  • Can’t get a traditional policy due to health conditions
  • Don’t need more than $25,000 in death benefit
  • Are between the ages of 50 to 85
  • Don’t mind the higher cost

Guaranteed Issue Life Insurance Sample Monthly Rates

Guaranteed Issue Male

AGE$5,000$10,000$25,000
60$32.40$63.17$154.92
61$33.44$64.89$159.21
62$34.42$66.83$164.07
63$35.30$68.60$168.51
64$36.31$70.61$173.53
65$37.55$73.09$179.73
66$38.85$75.69$186.23
67$40.33$78.65$193.63
68$42.38$82.75$203.87
69$44.70$87.40$215.51
70$47.57$93.14$229.85

Guaranteed Issue Female

AGE$5,000$10,000$25,000
60$23.57$45.14$109.84
61$24.26$46.52$113.30
62$25.05$48.09$117.22
63$25.95$49.91$121.76
64$26.98$51.97$126.91
65$28.26$54.51$133.27
66$29.59$57.18$139.95
67$31.10$60.21$147.51
68$32.55$63.09$154.73
69$34.19$66.37$162.92
70$36.21$70.41$173.03

Final Thought

There are a few other policy options, such as Universal Life or Indexed Universal Life, but these aren’t as popular for seniors over 60 as the ones I mentioned here. Finding an affordable policy will heavily depend on your health condition and current age since most plans will require you to take an exam and answer health questions on the application.

If you have any health conditions, do not attempt to buy a policy by yourself, because you may apply to the wrong company for your situation. Here at Effortless Insurance, we represent over 50 companies, and we can match you with the right company for your circumstances and health conditions. You can go ahead and run the quotes on this page (and can have realistic prices if you choose the regular health class), or you may call us toll-free at 866-326-3053 for an unbiased personal quote. Our service to you is free because we get paid by the insurance company.

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2018-06-12T06:12:48+00:00 May 22nd, 2018|Categories: Seniors Life Insurance|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has two amazing rescued pit bull puppies. He also enjoys real food, heavy squats, critical thinking, and reading.

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