Your financial needs change as you enter your sixties, especially your need for life insurance coverage. You may be nearing or entering retirement, paying off a home, or becoming a grandparent for the first time.
Regardless of your circumstances, one thing is a fact – as seniors age, many worry about being able to find an affordable life insurance plan to fit their budget. Well, in today’s insurance market, there are many companies that cater specially to seniors and the elderly. This means that almost everyone is able to obtain protection regardless of age, health issues, or tobacco usage.
Basic Policy Options for a Senior Over Age 60
You have two basic options for life insurance protection.
The first is term insurance. This is the simplest type of policy that you can get. You get a specific death benefit amount (based on the amount of coverage that you need) for a certain duration of time. For example, if you need a $100,000 policy to cover the balance of your mortgage, which will be paid off in 10 years, then you can get a 10 year term policy with a $100,000 face amount. With term coverage, the rate remains level for the term and at the end of the term the policy expires. You can renew at your current age or you can obtain a permanent policy.
The second option is whole life insurance, which is permanent protection. This type of policy has a fixed level premium and the policy will last for the rest of your lifetime. Most burial and final expense policies are permanent.
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Policy Needs and Objectives If You are Over 60
Every senior has a different life situation and a different reason for purchasing a life insurance policy. Some seniors over the age 60 are concerned about providing an income to their surviving spouse. Other seniors have debts that they want to be sure are paid off and not left to family members, and some seniors only want a policy to make sure their burial costs and final expenses are coverage.
Some additional reasons to obtain a policy over age 60:
- Providing for a special need (adult) child
- To maximize a pension
- Cash for estate taxes and fees
Things to Remember
- You Should Compare Multiple Quotes – Rates may vary by up to 70% or more between companies for the same person so it pays to compare
- Your Payment Options – Most insurance carriers allow you to pay your premium monthly, quarterly, semiannually, or annually. You can save about 5% on your policy by choosing an annual payment.
- Term Options – Depending on your needs, you can choose from a term of 5, 10, 15, or 20 years.
- Permanent Options – Whole life insurance will last for the rest of your lifetime with level premiums and your policy will build cash value. You can also obtain a small permanent policy just for burial or funeral expenses.
- Financial Rating of the Carrier – Insurers are rated based on their financial strength. A company with an “A” rating has a solid history.
- You Have Free Look Period – Most companies will give you a time period to look over your policy, which is essentially just a money back guarantee. This free look period ranges from 10 days to 30 days. If you are not completely satisfied with your policy terms, then you can refuse it and be refunded any premiums paid.
What If You Have Some Health Issues?
As in any case of life insurance, the better your health condition, the lower your rate will be. If your health is perfect then you can qualify for any policy at the lowest rate. But in most situations, seniors who over 60 have some health issues, but you can still find a quality life insurance plan within your budget. You just have to be wise when you shop for coverage.
What exactly does that mean? Well, there are many carriers that offer policies to people of all ages, but there are companies that have better rates for better situations. For example, do you have diabetes or high blood pressure? There are companies that have more affordable rates for these conditions. Do you smoke? Some carriers charge 20% to 30% more for tobacco usage, so you want to be sure to avoid those carriers. There are even carriers that will offer a reasonably priced protection for past heart attacks and strokes, though there may be a 1 to 2 year waiting period.
The bottom line is that no matter what your condition is, there are companies that are better and other companies that you should avoid. This is why it is absolutely essential to compare multiple rates from many carriers. When you do a rate comparison you get quotes from companies with years of experience helping seniors get life insurance.
Ready for a Quote? Compare Rates Today
Get started now and request a free life insurance quote. You can compare the lowest prices from over 70 top-rated insurance carriers. By comparing multiple quotes, you can easily save up to 70% on your policy and find the most affordable plan for your particular needs and situation. Compare rates from companies that offer affordable plans to fit the needs of seniors in this age group.
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