What You Need to Know About Getting a Senior Life Insurance Policy
Life insurance is a critical component of almost everyone’s financial plans, and this is because it can provide individuals with many benefits. While some may believe that life insurance for people over 60 is not necessary, there are important benefits that a senior life insurance policy can provide.
Many who purchase life insurance younger in life do so largely to provide death benefits to replace lost income or to provide for dependent children. Later in life, these needs are largely not in place, and some believe that seniors should reallocate the funds that they would have spent on life insurance premiums toward other financial needs. However, there are other reasons to invest in life insurance for people over 60. Your loved ones could experience financial hardship when you pass for other reasons, and protecting them from this hardship is easy to do with the right coverage.
Why You Need to Get Life Insurance Quotes Over 60
Later in life, many of your debts will be paid off or will almost be paid off, and this may even include your mortgage payment. Your children likely will no longer be financially dependent on you, and your spouse may receive regular income from your investments, Social Security, a pension or other sources. However, not everyone fits into this traditional mold, and some do have a high monthly mortgage payment and other debts in retirement. Some may be raising a child they had later in life or may be raising a grandchild. Social Security benefits are no longer as sufficient as they once were for supporting retirees, and pension rules have changed.
In addition, the cost of a traditional burial in the United States is approximately $10,000, and this is an expense that your loved ones would need to pay for within days of your passing. This may include everything from the memorial service to a burial plot, a casket, flowers and more.
Many who are financially secure and who have no concerns about supporting their loved ones after passing may still invest in burial insurance for seniors or final expense insurance. This type of coverage typically provides death benefits to the beneficiaries quickly, or the beneficiary could even be named as the funeral home providing the services. With a pre-arranged funeral plan and with the funds going straight to the funeral home, the stress associated with paying for and planning a service can be eliminated. There will not be a concern about loved ones having to take on credit card debt or sell assets to pay for a service.
In addition, many will look for affordable life insurance over 60 to pay off any remaining debts that may be in place. These debts may include a mortgage, a car loan, a credit card or other expenses that would pass on to the surviving spouse and that could create a financial hardship for him or her. This is particularly true if you are living on a fixed income in retirement. The benefits could pay off the debts so that your loved one could live without this financial stress.
Others will purchase life insurance for people over 60 to pay for estate taxes. Estate taxes can be burdensome and can drastically erode away the value of inheritance that your family members should receive. In some cases, more than half of the value of the estate is eliminated through taxes. Life insurance benefits can be used to pay the taxes so that the full value of the estate remains intact.
Some will purchase affordable life insurance over 60 to leave a charitable gift to an organization after their passing. With a small monthly premium payment, the insured could leave a vary sizable donation, and this could make a big impact to the charitable cause. This is a tax-free gift for the charity, and the charity can be named as the beneficiary.
Life Insurance With Cash Value
Some types of life insurance policies are designed to accumulate cash value for you, and these are viewed as true financial assets. They may be called whole life, universal life or permanent life insurance polices, and they will remain in place until the insured passes away or until the policy is surrendered. A portion of the payment will accumulate value, and this value will grow on a tax-deferred basis while earning interest.
The insured will be able to withdraw the cash at any time or borrow the funds to pay back later. These funds can be used for everything from paying off debts to supplementing retirement income, traveling and more. Some will use this as a back-up plan for financial emergencies in retirement, and others may invest it to turn it into a stable stream of income in retirement. With longer life spans, retirement can easily last for two or three decades for many people, so the supplemental income or source of savings is a true benefit to many.
The Cost of Life Insurance Over 60 Years Old
Many people are aware that age is a driving factor in the cost of life insurance coverage, and you may wonder how much life insurance over 60 years old will cost. There are several types of coverage available, and the two main types of term and permanent. When you get life insurance quotes over 60, you will want to pay attention to these differences.
Term Life Insurance
A term life insurance policy is one that will remain in effect only until the end of the term. Then, coverage will cease. The term length can vary from five years to 30 years, but there may be limitations on the term length based on the age and health status of the insured.
This type of policy will not accumulate cash value, so it is generally more affordable than a permanent life insurance policy. A downside to term life insurance is that the insured will not be covered once the term expires, and he or she may need to purchase a new policy that is priced according to their current age and health status.
Permanent Life Insurance
A permanent life insurance will never expire and will accumulate cash value with compounding interest benefits. As long as the premium is paid, the policy will remain in effect. Because of the cash value component and the fact that the policy will not expire, the premium is typically significantly higher than a term life policy.
The actual cost of this type of senior life insurance will be based on factors like the insured’s gender, height, weight, health status, family health history, income, occupation and various other factors. Even some risky hobbies, such as hang gliding or frequent foreign travel, can increase the premium.
When you apply for life insurance, you typically will be required to take a paramedical exam. During this exam, your blood pressure and vitals will be taken, and you may be required to provide a blood and urine sample. The outcome of this physical exam will also impact rates. In some cases, those with certain health conditions will have their application declined. Others may have a higher premium rate charged. If you have exceptional health, you may receive a lower premium than what was originally quoted to you.
If you plan to apply for a new life insurance policy, it may be wise to spend a few weeks eating healthier, losing a few pounds if necessary and taking other steps to ensure that your blood and urine samples show that you are as healthy as possible.
Searching for the Best Quotes on Life Insurance Over 60 Years Old
If you are thinking about applying for coverage, you may be wondering how you can find the best rates for seniors. Some will work with a single life insurance carrier under the assumption that all companies will provide similar quotes and coverages. However, the policies, benefits and premium that is charged to you can vary dramatically from one carrier to another. Some carriers may even decline coverage for some underlying health conditions while others will approve you. With this in mind, it is best to shop for a new life insurance policy with several different carriers so that you can find the best plan for your needs and for your budget.
We are a life insurance company that strives to help seniors like you purchase the coverage you need. We understand that different individuals have unique needs for coverage, and we can take time to learn about how you plan to use the benefits and the amount of coverage that you need before we start shopping for quotes for you. In addition, we can learn more about your health status and other factors that can influence rates.
Our team is familiar with the coverage requirements and limitations of various insurance companies, and we can easily help you to find the best insurance policy for you. Buying life insurance can seem stressful, but we can help you to streamline the process so that you get the coverage you need.