Life Insurance Over 60 – An Insider’s Guide to Coverage

Life Insurance for Over 60_500WThose who reach retirement years often look back at their lifetime of hard work and realize that they want to preserve what they have earned and pass it on to loved ones.  

The great thing about life insurance is that it’s an excellent tool to help preserve the wealth you have while creating a lasting legacy for your loved ones.

Buying life insurance after the age of 60 used to be a challenge because rates were unaffordable and coverage options were limited. Luckily, times have changed and this is no longer the case.

We work with dozens of companies that offer affordable life insurance over 60, including whole life and term life insurance options.

Quick Article Guide

1. Do I Still Need Life Insurance?
2. Pension Maximization with Life Insurance
3. Best Policies for Over 60
4. Is it possible to obtain affordable life insurance after 60?
5. Do All People Over 60 Need Life Insurance?

Do I Still Need Life Insurance?

If you were to pass away tomorrow, your family could be faced with some unexpected expenses.  Depending on their financial situation, covering these expenses may be devastating for your surviving loved ones.  Unless you have money set aside to cover your funeral and any other debts that you may leave behind, we recommend purchasing a life insurance policy. Life insurance will provide your beneficiary, or beneficiaries, with a lump sum of cash to prevent your family from dealing with any unnecessary financial stress after you pass away.

Life insurance is also commonly purchased after the age of 60 to replace potential lost income that your loved ones depend on. Experts recommend fine-tuning for your retirement by age 60, which includes looking at your life insurance options.

Read our guide to income protection for breadwinners here.

If you have already retired, life insurance can also be purchased for pension maximization strategies, or to ensure income for your spouse if they are dependent on your social security income. Depending on your need for life insurance, most financial advisers recommend a life insurance policy that’s large enough to cover any outstanding debt, such as mortgages or car loans, so that your family can maintain their current lifestyle after you pass away. If you want to leave money for an inheritance or protect your estate from estate taxes, you will also want to look into a permanent life insurance policy to make your policy is still in place when you pass away.  If you’re having trouble determining the type of life insurance you need, we can help you determine your needs.

Pension Maximization with Life Insurance

Pension maximization is the most common reason that people over 60 call us for life insurance. If your work has offered you a traditional pension upon retirement, you may be able to protect your spouse and save money by electing the single-pay option instead of the joint-pay or survivorship option. If you are in average or better than average health, you can purchase life insurance to protect your spouse when you pass away rather than electing the joint-pay option that your pension offers. With a single pay option, your spouse would no longer receive an income if you were to pass away; however with a joint-pay pension, your wife would still receive a monthly income from your pension even if you were to pass away. Because of this, joint-pension plans will dramatically reduce your monthly pension benefit. This reduction in your monthly pension is usually so large that it is less expensive to select the single-pay option and buy a life insurance policy to protect your spouse instead.

Instead of electing the joint-pay option and greatly reducing your monthly income, enjoy your retirement! Most of the clients we work with are able to save hundreds of dollars each month by buying life insurance instead of electing the joint-pay option that their pension offers. Since death benefits from life insurance policies are generally paid out tax free, your spouse can use the proceeds of the policy to pay the bills or even supplement their Social Security benefits and other income after you pass away. If you are approaching retirement age, make sure you apply for your life insurance at least three months before your pension decision deadline. This will provide you with ample time to weigh your options. When making choices regarding your spouse’s well being read our article “What They Haven’t Told You About Insuring Your Spouse”

Depending on your need for life insurance coverage, we can offer $50,000 – $5,000,000 of life insurance with guaranteed rates until the age of 95, 95, 100, 105, 110 or even 121. We may also be able to offer you a 10, 15, or 20 year term life insurance policy as well.  All life insurance companies have a cut off age for their term life policies and the cut off age varies between companies.  Since we work with dozens of life insurance companies, we can help match you to a company that fits your needs.

Here are some sample monthly rates for a 10-year term for a healthy male age 60 or older.

Age $50,000 of coverage $100,000 of coverage $250,000 of coverage
60 $19.34 $28.62 $60.10
61 $21.83 $32.62 $67.63
62 $24.41 $37.08 $75.90
63 $27.26 $41.95 $84.70
64 $30.28 $47.18 $94.82
65 $33.47 $52.69 $105.35
66 $36.44 $58.29 $117.60
67 $39.99 $64.09 $130.30
68 $44.01 $72.08 $145.67
69 $48.61 $80.10 $158.21

The quotes displayed are monthly rates from an A-rated company. Quotes are for a male in excellent health. Rates valid as of 01/01/2016.

In some cases, if you’re older than the term life insurance cut off age, you may be able to qualify for a permanent life insurance policy such as a whole life or a guaranteed issue policy.

For more information ready our pension maximization guide.

What are the best life insurance policies for people over 60 to purchase?

The answer to the question above depends on the reasoning behind purchasing the life insurance. In cases that you need to replace lost income or pay off significant debts, term life policies are the best and most affordable. The premiums remain relatively low because the policies require a health check and they do not build cash value. Please be aware that many insurance companies have their term life insurance cut off at age 75, so in order to maximize your choices, you will need to purchase term life insurance sooner rather than later. If you are working with a local agent, your options may be even more limited as many of the companies that specialize in home and auto insurance stop offering life insurance after age 65. Typically, we can help clients in fair or better health until the age of 79, but remember, the longer you wait to buy your policy, the more expensive it becomes.

If you’re purchasing life insurance for estate planning purposes, such as funding a trust, maximizing your pension, or providing liquid cash to cover estate taxes, you should probably look into a permanent life insurance policy such as a guaranteed universal life insurance policy (GUL). No matter what your needs are, you should always speak to a licensed agent or financial advisor before moving forward on a policy. A guaranteed universal life policy is set up just like a term policy except you can guaranteed your rates and coverage much later into life, sometimes even up until the age of 121. These policies do not build a cash value, your rates are not dependent on investments, and they are guaranteed not to change.

Monthly rates for a Guaranteed Universal Life policy with guaranteed rates and coverage until the age of 90 or later. Rates are for a healthy male, age 60 or older:

Age $50,000 of coverage $100,000 of coverage $250,000 of coverage
60 $77.65 $103.79 $225.73
61 $81.90 $106.82 $237.28
62 $86.70 $110.42 $245.68
63 $91.95 $117.52 $260.13
64 $97.65 $126.78 $278.70
65 $103.90 $135.11 $297.31
66 $110.55 $136.90 $301.39
67 $117.60 $137.82 $318.12
68 $124.95 $146.91 $334.73
69 $132.75 $158.26 $353.69

The quotes displayed are monthly rates from an A-rated company. Quotes are for a male in excellent health. Rates valid as of 01/01/2016.

Is it possible to obtain affordable life insurance after 60?

It’s important to note when buying a life insurance policy that, life insurance coverage is not “one size fits all,” below are a few suggestions that can help you with your search.

Shopping the market – You can save yourself some time by calling an agent that works with multiple companies.  This is important because they can shop different insurance companies and provide you with multiple quotes. Working with a life insurance “broker” will also prevent you from having to call multiple agents and answering the health and lifestyle questions over and over again.  I also recommend comparing the different quotes that you receive so that you purchase the policy that best fits your needs.

Purchase life insurance ASAP – After age 50, life insurance becomes more and more expensive each year.  If you need to purchase life insurance, we recommend making your decision as soon as possible because it can save you a lot of money in the long run.

Stay healthy – It’s no secret that your current health and lifestyle weighs heavily on how much your life insurance premiums will be.  Things like smoking, drinking excessively, and being obese can raise the price of your premiums substantially.  It’s important to do your part to keep yourself as healthy as possible so that you are able to afford the monthly premiums.

Do all people over age 60 need life insurance?

No, not all seniors need life insurance. Yes, you read that correctly! We firmly believe that everyone’s situation is different and in some cases you may be financially secure enough to provide your family financial security without life insurance. If you have done your due diligence in paying off all of your debts and have set aside a sizeable amount of savings, you most likely do not need a life insurance policy.  This is especially true if you have already purchased long term care insurance and your children are no longer financially dependent on you.

If you’re shopping for life insurance over 60, give one of our agents a call. JRC Insurance Group works with dozens of highly-rated life insurance companies in order to provide our customers with the most affordable life insurance coverage available. Our goal is to “match” our clients with the right life insurance policy to fit their needs. We’re here to help, give us call today. Toll free: (855) 247-9555 or request a free quote and shop dozens of companies in just a few seconds.

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2 comments… add one
  • Dan Mellen November 14, 2017, 7:56 am

    Interested in a quote for $100k to $150k policy for 20 years. Currently age 66.

    • Randy McClintick November 14, 2017, 11:13 am

      Mr. Mellen,

      Thank you for visiting your question and visiting our JRC Life Insurance website.
      You’re welcome to run preliminary quotes on our site. Here again, is the link.

      If you’re not seeing too many companies offering 20 year term policies, it’s because most choose not to offer term insurance for men much past 80. One popular alternative is a guaranteed universal life “GUL” type of policy which is age based, rather than time (term) based. Depending upon your state of residence, there may be options with guaranteed prices to age 90, which sometimes price better than term life coverage.

      JRC is a free shopping service. We’re fully licensed, and can help you compare options on one phone call. We offer pre-qualification medical underwriting, which helps you determine the rates you’ll likely qualify for after an insurance medical record reviews your medical history.

      Call us at (855) 247-9555 and we’ll be glad to help and answer your questions. Should you choose to apply for coverage, we’ll work as your advocate and be available through the process and help you review your approved policy. Again, there’s no cost or obligation for our professional assistance.

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