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If you are in your 60’s, perhaps one of the last things you wanted to do today was buy a life insurance policy. You would probably rather schedule yourself for a double colonoscopy than researching life insurance.
But here you are looking for a policy.
All the financial guru’s and conventional wisdom told us life insurance is only for the short term. For parents in their 30’s or 40’s with small children and a mortgage during their working years.
For many people, the financial pundits got it wrong.
Yes, bad advice.
But I do have some good news for you. There are insurance companies that specialize in affordable life insurance for people in their 60’s. So finding a policy that “won’t break the bank,” will not be that difficult.
Life Insurance For Parents Over 60
It’s not unusual for parents in their 50’s or 60’s are still buying life insurance. Even elderly people in their 70’s and 80’s feel the need for some insurance coverage too! For some folks, the need for life insurance never goes away.
Where did things go wrong?
Consider these recent findings from Fidelity Investments:
According to a recent “Retiree Health Cost Study,” a 65-year-old couple retiring in 2016 will need an estimated $260,000 to cover health care costs in retirement. Not included in the study were additional health-related expenses, such as over-the-counter medications, dental services and long-term care.
Why do people still need life insurance in their sixties, seventies or eighties?
1. Pay Off Debts: Believe it or not, your debt or financial obligations do not just disappear when you reach retirement age. People are living longer and many folks in their 60’s still live a good and active lifestyle. Traveling, vacations, new cars, club memberships and so on.
Not to mention as the Fidelity study points out, medical bills, prescriptions and long term care costs can really add up. Many parents want an insurance policy to cover these debts so their children won’t have to deal with them.
2. Final Expenses: People in their 60’s are looking to purchase a final expense policy or an insurance policy that covers their funeral and burial costs. The cost of a respectable funeral nowadays can be anywhere from $10,000 to $20,000. Insurance proceeds can be spent however your beneficiary chooses: Funeral expenses, Burial expenses, medical costs, final debts and more. Policy amounts are available from $5,000 up to $35,000.
Final Expense Policies do not require a medical exam. They are guaranteed issue but they will require an application. You will be required to list your previous health history but these policies still cover people with higher health risks
Final Expense insurance is more affordable than term life insurance; For people in their 60’s, this makes it a great choice for people who are on a budget. Term or whole life insurance can be much costlier especially for individuals with health problems.
3. Leave An Inheritance For Children or Grandchildren
Many parents want their children or grandchildren to be as well off as they were. So leaving a life insurance policy for their kids where they will have cash to buy a home or pay off their bills is very important to many parents.
This is where term life insurance or whole life insurance can be used to leave a legacy to your children or grandchildren. However, with most term or whole life policies, a medical exam is usually necessary. There are some insurance companies that offer no exam life insurance but the coverage amounts offered will be less.
Tips For Buying Life Insurance in your Sixties
Unfortunately, once you hit age 60, you can no longer buy a 30 or 40 year term policy. The only policies available at age 60 are 10, 15, 20 and 25 years. Once you turn 66 years old, the 25 year term polices are no longer available.
(Quick Tip: Use choose “Regular” health class on the quote form to view rates from our top insurance companies that specialize in Adult Insurance Policies).
Tip #1: Decide How Long You Need Coverage: Before you look for a policy, decide how long you think you might need it for. I understand this is easier said than done but once you decide on a time frame, it’s easier to compare policies.
For instance: Are you still working? If you are, maybe you only need a 10 or 15 year term policy to cover you until you retire.
Tip #2: Know Your Budget: The last thing you want to do is purchase a policy that you cannot afford. Term life is cheaper than permanent or whole life coverage, and you can buy a lot more term coverage for the same premium as permanent coverage.
Tip #3: Shop Around: Work with an independent insurance agent who specializes in the insurance needs of seniors. Yes, your needs are different than a 30 or 40 year old and you should work with someone who is familiar with your specific situation.
The most important thing to understand is, if you need life insurance you can’t wait much longer. Every year you wait or put off the decision, the costs increase more than ever before.
Companies That Specialize In Insurance For People In Their 60’s
There are several insurance companies that cater to the “over 60 crowd,” but their are only a few – in my view- that are financially sound and easy to work with.
Here are my top picks in no particular order:
- TransAmerica – has been around for over 100 years and has very good financial ratings. A.M. Best – which monitors the long term financial outlook of a company – gives them a A+ rating of Superior – which is their 2nd highest rating.
- Companion Life Of New York: This is an affiliate company of Mutual of Omaha which has been in business for more than 40 years. Companion Life offers policies in 49 states including the District of Columbia. They are Rated A+ (Superior) by A.M. Best
- American National Life Insurance of NY: Is an affiliate of American National Insurance Company. It was founded in 1905 and has evolved into an industry leader, ranking among the largest of life insurance companies in the United States. A.M. Best gives them a financial rating of “A ” Excellent.
- Gerber Life: Since 1967 Gerber Life Insurance Company has been providing adult insurance coverage at affordable prices. A.M. Best gives Gerber Life an “A” rating of Excellent.
Final Thoughts:
The absolute best way to get the best rates on adult life insurance, is to make sure you are working with an independent life insurance agency – like us – who has access to ALL of the top rated life insurance companies.
Every life insurance company has a different way of determining risk and will price different conditions in different ways. Contact us at: 914-633-1717 to learn how we can help you find the best policy at the best price.
