You did it – you’ve worked your butt off the past 30+ years, and are finally on your way to retirement.
With that being said, it’s important now more than ever to make sure you have a life insurance policy in place in case something were to ever happen to you. We won’t lie, it’s going to be harder to receive affordable rates at age 62 versus age 30, but that doesn’t mean it’s impossible!
Here at JRC, we work with over 45 different life insurance companies, and have no doubt we can find a company that fits your needs.
This article will discuss which types of life insurance are best for a 62-year-old male, as well as some sample quotes for each type.
Quick Article Guide:
- Term vs. Permanent Life Insurance
- Whole vs. Guaranteed Universal Life Insurance
- Sample Rates for a 62-Year-Old Male
- Getting Affordable Rates
- Questions? We Can Help!
The first thing you need to consider is what your needs are. Do you need coverage for just a few years, or are you looking for lifetime coverage?
Say you don’t have any plans on leaving an inheritance, but still have a bit of your mortgage that that hasn’t been paid off. You don’t want all your retirement money to go towards that, so instead you buy a 10 or 15-year term policy. In this scenario, a term life insurance policy would make more sense.
But if you are looking for longer term coverage, and want to leave money behind after you pass (but don’t want to spend your retirement money), permanent life insurance might be a better option.
Another reason people buy permanent life insurance is if they have a lifelong dependent, such as a special needs child. A permanent policy can help fund a special needs life insurance trust for their child.
Maybe you don’t have a lifelong dependent, but want to leave money behind for your family to help pay for your funeral. We all know funerals aren’t cheap, and any finances we can provide to our loved ones would surely help out. Permanent life insurance policies would be a great fit for that.
One last reason why you may want to opt for a permanent life insurance policy would be if you have a large estate that is taxable. As of 2018, if you have an estate that is less than $11.2 million (or $22.4 million for couples), it won’t be taxed. But if your estate value is more than that, it is subject to taxation. Having a payout from the permanent policy may protect your family from having to sell the property or their belongings to pay the taxes.
Within permanent life insurance, there are a few different types of policies, with the two main ones being whole life insurance and guaranteed universal life insurance (also known as GUL). We’ll discuss those two below.
Whole life insurance has been popularized by tv commercials and famous celebrities advocating for it, but what does it really entail? Essentially, it is a type of permanent life insurance policy with an investment component (also known as a cash value accumulation). This means that when you pay your monthly premiums, a part of it goes towards the accumulation portion.
This accumulation is interest-bearing, so the cash value will increase over time, but not nearly to the extent that celebrities and tv makes it seem. Most times, this accumulation is extremely minimal. It’s also important to note that this is typically the most expensive life insurance option in comparison to GUL and term, and only offers up to $50,000 of coverage.
If you aren’t in very good health, however, whole life may be your best option. You don’t have to take a medical exam to qualify, and they tend to be more lenient with health issues than term and GUL do.
So how does guaranteed universal life insurance differ? We like to describe GUL as a hybrid of term life and whole life; it’s permanent, similar to whole life, but instead of being in effect for a certain number of years like term life, GUL goes up until a certain age – such as 90, 95, 100, 105, 110, or even 121.
In terms of cost, it is more expensive than term life, but less expensive than whole life. GUL has a death benefit just like whole and term life, but does not contain the investment component like whole life.
We typically recommend guaranteed universal life insurance over whole life, but don’t forget that each case is unique, and you should contact one of our independent agents to find out which type of policy is right for you!
Now let’s get to what everyone’s really wondering…how much is it going to cost? We’ve laid out sample rates for a term life, guaranteed universal life, and whole life policy for a “preferred”, non-smoking 62-year-old male below.
Term Life Insurance Sample Rates
|Term Length||$250,000 Coverage||$500,000 Coverage||$1,000,000 Coverage|
Guaranteed Universal Life Insurance Sample Rates
|To Age ...||$250,000 Coverage||$500,000 Coverage||$1,000,000 Coverage|
Whole Life Non-Smoking Male
|$20,000 Coverage||$30,000 Coverage||$50,000 Coverage|
*These rates are accurate as of 07/01/2018 and are provided for illustrative purposes only.
- Exercise – this should come at no surprise, but exercising has so many benefits, and can undoubtedly improve your overall health.
- Eat a healthy, balanced diet – this goes hand in hand with exercising. We only get one body, why not treat it well?
- Stop smoking – another no-brainer. Quitting may not only improve your rates, but it will vastly improve your health as well.
- Limit your hazardous hobbies – if your hobbies include skydiving, bungee jumping, or anything else deemed dangerous, you’re definitely at risk of receiving higher rates.
- Lose weight – If you are at an unhealthy weight for your height, you’ll most likely receive higher rates on your policy. Losing just a little bit of weight could definitely help when it comes to saving some money.
Still not sure which type of life insurance policy is right for you? We get it, it can be very confusing. That’s why we’re here to help!
At JRC Insurance Group, we have helped thousands of families and businesses with their life insurance needs, and we can help you too! Our agency is licensed in all 50 states and we’re independently owned and operated.
As a non-partial, no-fee brokerage, our goal is match our clients with the best life insurance options available by shopping and comparing rates from more than 45 highly-rated insurers. By having access to dozens of companies and their guidelines, we’re able to save our client’s time and money.
Most importantly, our services as completely free, and there is no cost to apply for coverage. Give us a call toll-free today at 855-247-9555, or you can request a free quote online to compare rates and options from dozens of insurance companies in less than a minute.