Best Life Insurance for Retirees (Updated Guide for 2023)
Generally, our need for life insurance decreases as we get older, but in some cases having a little bit of coverage might not be a bad idea if you still have a few financial obligations.
In this guide we’ll help you determine whether you need life insurance, and if so, for how long? And how much? We’ll allow give you the inside scoop on employer provided life insurance after retiring.
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When Do You No Longer Need Life Insurance?
Everyone’s need for life insurance is different, and some of us could probably do without it. If you have no debt, no dependents, and some money set aside for your burial costs, you may not need life insurance any longer.
Life insurance is usually purchased to replace income, secure debt, pay for final expenses, or leave money behind for inheritance or estate purchases. If you do not have any financial obligations and no one that you want to leave extra money behind to save your money and enjoy retirement!
If you still have a small mortgage balance, or someone who depends on you for financial support, keeping a life insurance policy in place may be your safest bet. Some term policies will even allow you to decrease your coverage or convert a portion of your policy in lifetime coverage for burial expenses.
Keeping Life Insurance After Retirement
Once we reach retirement age, our need for life insurance usually decreases, but if you still need some coverage, it important to compare your options before buying a life insurance policy. Most life insurance policies are better-suited for specific needs and buying the wrong policy could be problematic.
When purchasing life insurance after the age of 60, the most important thing to consider is how long you will need your life insurance for. If you only need protection for a set number of years, buying a term policy will save you a lot of money, and most companies offer term that extend to the age of 80 or later.
On the other hand, if you need life insurance for the rest of your life for estate purposes, pension maximization, an inheritance, or a special needs child, you’ll want to avoid term insurance. Instead you’ll want to purchase lifelong coverage with guaranteed rates until at least age 90.
We’ve created an extensive guide to help you with your pension planning needs. If you are researching creating a trust for a special needs child or estate planning purposes, we recommend speaking to one of our experts. Call Toll-free: 855-247-9555.
How Much Life Insurance Do I Need?
If you need life insurance to secure debt, determining the amount of coverage you need is as simple as adding up all your debts buying a policy that is large enough to settle them. Term policies are the best for this purpose, just make sure your term last until you expect the debts to be repaid.Purchasing life insurance for income replacement can be a little trickier, but it can be calculated by: (estimating the amount of financial support you provide each year) x (the number of years you expect to provide financial support). You can also use our term life insurance calculator for additional help.
If you will need life insurance for the rest of your life, you’ll want to purchase a lifetime policy that does not require investing. If you need a death benefit that is $75,000 or larger, guaranteed universal life insurance is the clear favorite among financial advisers.
These policies work just like term insurance with guaranteed rates and coverage until age 90, 95, 100, 105, 110, or 120. The rates are extremely affordable compared to other “whole life” options, and no investing is required.
If you need $50,000 of coverage or less, traditional whole life insurance is your best option. These policies provide level rates and coverage until the age of 100. They are more expensive than comparable guaranteed universal life insurance policies, but they do not require an exam for approval.
Employer Life Insurance After Retirement
If your employer offers your life insurance after your retirement, we recommend comparing your options. Some of our clients initially elect the coverage from their work but later compare their options to see if they can save money.Applying with a new company will not forfeit your existing life insurance agreement, but it will give you the option to see if you’re overpaying. For most people in average or better health, employer provided life insurance is a lot more expensive than buying coverage on your own.
Employer provided life insurance is a form of group coverage. With group coverage, everyone in the group is eligible for insurance, but some of the group’s members would not be able to qualify for life insurance on their own. To offset this risk, insurers must charge everyone in the group a little more.
If you have serious health issues, or if you are a heavy smoker, group coverage may be your best option. However, if you are in average or better health for your age, buying your own policy outside of the group will probably save you 50% or more.
Sample Life Insurance Rates After 60
Below we’ve provided some sample life insurance rates for males and females who are between the ages of 60 and 70. We also included the four most common rate classes for non-smokers who are in average or better health.
If you’re in overall good health, you’ll probably qualify for a preferred or preferred best rate. If you have a few health issues like well-controlled diabetes, you may qualify for a standard plus or standard rate class.
For a better understanding of each rate class, you can call us to speak with a licensed agent, or read our guide, “Which Life Insurance Rate Class Am I?”
| Age | Preferred Best | Preferred | Standard Plus | Standard |
| 60 | $28.38 | $34.31 | $43.23 | $45.84 |
| 61 | $31.30 | $37.75 | $43.67 | $50.65 |
| 62 | $35.09 | $41.83 | $44.19 | $56.85 |
| 63 | $39.73 | $44.28 | $46.38 | $64.76 |
| 64 | $41.74 | $46.64 | $48.92 | $74.65 |
| 65 | $43.67 | $49.09 | $51.46 | $80.24 |
| 66 | $55.95 | $62.31 | $62.31 | $91.36 |
| 67 | $62.46 | $73.07 | $73.85 | $102.04 |
| 68 | $69.22 | $82.33 | $85.41 | $113.83 |
| 69 | $75.78 | $92.75 | $98.27 | $123.35 |
*Displayed monthly rates are accurate as of 12/29/2022 and are provided for illustrative purposes only.
| Age | Preferred Best | Preferred | Standard Plus | Standard |
| 60 | $19.35 | $25.20 | $33.43 | $34.66 |
| 61 | $20.81 | $27.09 | $33.78 | $37.75 |
| 62 | $22.88 | $29.76 | $33.95 | $41.71 |
| 63 | $25.63 | $32.91 | $34.30 | $46.78 |
| 64 | $29.41 | $34.92 | $35.35 | $51.55 |
| 65 | $33.65 | $36.23 | $36.41 | $57.70 |
| 66 | $37.71 | $44.81 | $44.98 | $62.19 |
| 67 | $41.00 | $50.48 | $53.99 | $68.42 |
| 68 | $45.33 | $56.14 | $62.92 | $76.55 |
| 69 | $49.56 | $61.93 | $71.93 | $83.52 |
*Displayed monthly rates are accurate as of 12/29/2022 and are provided for illustrative purposes only.
| Age | Preferred Best | Preferred | Standard Plus | Standard |
| 60 | $114.93 | $126.08 | $134.42 | $153.24 |
| 61 | $122.68 | $134.79 | $143.80 | $164.16 |
| 62 | $130.43 | $143.49 | $153.19 | $175.11 |
| 63 | $138.39 | $152.20 | $162.57 | $185.00 |
| 64 | $145.95 | $160.90 | $171.95 | $194.50 |
| 65 | $153.70 | $169.60 | $181.32 | $204.40 |
| 66 | $162.74 | $179.60 | $191.76 | $219.37 |
| 67 | $171.79 | $189.61 | $202.21 | $230.85 |
| 68 | $180.83 | $199.61 | $212.65 | $242.34 |
| 69 | $189.88 | $209.60 | $223.09 | $253.81 |
*Displayed monthly rates are accurate as of 12/29/2022 and are provided for illustrative purposes only.
| Age | Preferred Best | Preferred | Standard Plus | Standard |
| 60 | $104.61 | $113.63 | $121.61 | $132.80 |
| 61 | $109.24 | $118.83 | $127.23 | $139.60 |
| 62 | $113.91 | $124.04 | $132.85 | $146.70 |
| 63 | $118.55 | $129.24 | $138.46 | $154.40 |
| 64 | $123.19 | $134.45 | $144.08 | $161.96 |
| 65 | $127.86 | $139.64 | $149.69 | $168.45 |
| 66 | $133.97 | $146.43 | $156.90 | $176.66 |
| 67 | $140.10 | $153.23 | $164.13 | $184.87 |
| 68 | $146.22 | $160.01 | $171.34 | $193.06 |
| 69 | $152.34 | $166.81 | $178.54 | $201.26 |
*Displayed monthly rates are accurate as of 12/29/2022 and are provided for illustrative purposes only.
Call Us for a Free Customized Quote
At JRC Insurance Group, we are experts at matching our clients with the most affordable life insurance options available. Our agents are experts at underwriting and we work directly with more than 50 top-rated life insurance providers.
We specialize with clients who are considered to be a “high-risk” for life insurance, and we’ve had tremendous success at finding affordable coverage options for clients who have been turned down before.
If you’re in excellent health, we can help too! Some life insurance companies specialize with healthy applicants, while others tend to be lenient with health issues. By having access to so many companies, we can always find your best match.
Our impartial hopping services are free, and there is no cost to apply for coverage. Our agents offer multiple years of experience, and we’ve helped thousands of families with their life insurance needs. Give us a call today toll-free at 855-247-9555 or request a free instant online quote below.
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Clifford Pendell
Managing Partner and Co-founder
Cliff is a licensed life insurance agent and one of the owners of JRC Insurance Group. He has helped thousands of families of businesses with their life insurance needs since 2012 and specializes with applicants who are less than perfect health. In his spare time he enjoys spending time with family, traveling, and the great outdoors.
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