If you are approaching retirement age, you may be considering your options for affordable life insurance. When we retire, most of us will lose the our employer-provided policy, but some of us will still need coverage.
Common reasons for buying life insurance after the age of 60 include: funding an inheritance, maximizing a pension plan, paying for final expenses, protecting a mortgage, and providing income protection for a spouse.
Selecting the right policy depends on the applicant’s health, the amount of coverage needed, and the reason for purchasing the insurance. In this article, we’ve explained each type of coverage and we’ve provided some sample rates by age and gender.
Quick Article Guide:
1. Can Someone Still Get an Affordable Life Insurance Policy After the Age of 60?
2. What Is Term Life Insurance and How Does It Work?
3. Sample Term Life Insurance Rates for a 64-Year-Old in Excellent Health
4. What Is Guaranteed Universal Life Insurance and How Does It Work?
5. Sample Guaranteed Universal Insurance Rates for a 62-Year-Old in Excellent Health
6. What Is Guaranteed Issue Life Insurance and How Does It Work?
7. Sample Guaranteed Issue Insurance Rates for a 65-Year-Old in Poor Health
8. We Can Help You Find Your Best Rates and Coverage Options
Can Someone Still Get an Affordable Life Insurance Policy After the Age of 60?
After the age of 60, health plays a vital role in determining your cost of coverage for life insurance. If you are in fair or better health, you can usually qualify for any type of life insurance, but if you have a terminal illness, guaranteed issue insurance may be your only option. By working with more than 60 top-rated life insurance companies, we’re able to match our clients with the most affordable life insurance options available to them, regardless of their overall health.
Term life insurance is extremely popular after the age of 60 because it provides the most coverage for the least amount of money. Term policies are usually more affordable than permanent life insurance policies because they are not designed to last your entire lifetime and they do not build a cash value. Instead, they provide fixed rates and coverage in 5 year increments, usually for 10, 15, or 20 years. In the next section, we’ll explain term life insurance further and provide some sample monthly rates for an applicant in good health.
What Is Term Life Insurance and How Does it Work?
Term life insurance provides a fixed amount of coverage for a set period of time. The amount of coverage your policy offers is referred to as the “face amount.” This is the amount of money your policy will pay out to your beneficiary or beneficiaries if you pass away while your life insurance policy is active. The face amount of a life insurance policy is also commonly referred to as a death benefit.
Most life insurance companies offer face amounts of $50,000-$5,000,000, depending on your current income. However, after the age of 60, the majority of insurance companies will only offer their applicants up to 10 times their earned current income, before taxes. For this reason, we recommend purchasing your life insurance policy before you retire, especially if you need a large amount of coverage.
The “term” of your life insurance is the amount of years that the policy is guaranteed to stay the same price. During the term of your policy, the insurance company cannot decrease your coverage or cancel your policy, regardless of any changes to your health. Purchasing a term life insurance policy after the age of 60 usually requires a free medical exam, unless you are purchasing less than $100,000 of coverage.
It’s also important to note that after the age of 62, most life insurance companies stop offering terms that are longer than 25 years. After the age of 67, almost every life insurance company stops offering term policies that are longer than 20 years.
Sample Term Life Insurance Rates for a 64-Year-Old in Excellent Health
Below, we have provided some actual 20-year term life insurance rates for male and female applicants in excellent health.
Monthly Rates for a 64-Year-Old (20-Year Term – $100,000 to $500,000 of Coverage)
| Coverage Amount | Male | Female |
|---|---|---|
| $100,000 | $89.30 | $58.51 |
| $150,000 | $132.52 | $86.64 |
| $200,000 | $143.13 | $104.08 |
| $250,000 | $177.27 | $117.48 |
| $300,000 | $211.41 | $139.30 |
| $400,000 | $279.69 | $182.95 |
| $500,000 | $347.98 | $226.60 |
*Displayed rates are accurate as of 05/01/2017 and are provided for illustrative and educational purposes only.
Monthly Rates for a 64-Year-Old (25-Year Term – $100,000 to $500,000 of Coverage)
| Coverage Amount | Male | Female |
|---|---|---|
| $100,000 | $121.95 | $102.00 |
| $150,000 | $181.63 | $151.70 |
| $200,000 | $241.32 | $201.41 |
| $250,000 | $275.42 | $227.47 |
| $300,000 | $329.98 | $272.45 |
| $400,000 | $439.12 | $362.40 |
| $500,000 | $524.17 | $436.88 |
*Displayed rates are accurate as of 05/01/2017 and are provided for illustrative and educational purposes only.
Monthly Rates for a 64-Year-Old (Level to Age 95 – $100,000 to $500,000 of Coverage)
| Coverage Amount | Male | Female |
|---|---|---|
| $100,000 | $144.00 | $126.17 |
| $150,000 | $237.49 | $189.25 |
| $200,000 | $316.66 | $236.48 |
| $250,000 | $368.65 | $289.10 |
| $300,000 | $442.38 | $346.92 |
| $400,000 | $589.84 | $462.56 |
| $500,000 | $708.15 | $560.60 |
*Displayed rates are accurate as of 05/01/2017 and are provided for illustrative and educational purposes only.
Buyer Beware: Most term life insurance policies expire by the age of 87, so they are not ideal for people who need permanent life insurance. For this reason, term insurance should not be purchased to leave an inheritance behind or to protect your heirs from estate taxes. Most life insurance companies will allow you to continue your coverage after your term has ended. However, your policy will be at least 3-5 times more expensive. We do not recommend extending your policy after the term has ended unless you can no longer qualify for a new policy due to your age or a terminal illness.
Bottom Line: If you are in decent health and need life insurance for a limited number of years, a level term insurance policy is the most economical option. If you are looking to secure lifetime coverage, you’ll want to purchase a permanent insurance policy. We’ve explained the best option for affordable permanent coverage in the next section.
What Is Guaranteed Universal Life Insurance and How Does It Work?
Guaranteed universal life insurance policies work just like term life insurance, but instead of expiring after 20 or 25 years, they offer coverage until the age of 90 or later. These policies are more affordable than whole life insurance policies because they do not build a cash value, and after the age of 65, they are competitively priced with term insurance.
With a Guaranteed Universal Life insurance policy, you can lock your rates until the age of 90, 95, 100, or even 121. For this reason, guaranteed universal life insurance is the most popular choice for anyone who wants to leave money behind for their final expenses, provide an inheritance, or reduce their estate taxes.
Like term life insurance, Guaranteed Universal Life insurance policies typically offer face amounts that range from $50,000 and $5,000,000 and they require a medical exam. Because of the medical screening, most of our clients in fair to excellent health can purchase $100,000 of coverage for the same price as a $20,000 whole life insurance policy without a medical exam.
Sample Guaranteed Universal Insurance Rates for a 62-Year-Old in Excellent Health
Below, we’ve compared rates for a 25-year level term policy and a guaranteed universal life insurance policy until the age of 95.
Term vs. Guaranteed Universal Life Insurance for a 62-Year-Old Female in Excellent Health
| Coverage Amount | Monthly Rates Level to Age 87 | Monthly Rates Level to Age 95 |
|---|---|---|
| $100,000 | $86.86 | $115.57 |
| $150,000 | $129.00 | $173.36 |
| $200,000 | $171.14 | $231.14 |
| $250,000 | $181.78 | $267.23 |
| $300,000 | $217.03 | $320.67 |
| $400,000 | $287.53 | $427.56 |
| $500,000 | $358.02 | $516.10 |
*Displayed rates are accurate as of 05/01/2017 and are provided for illustrative and educational purposes only.
Term vs. Guaranteed Universal Life Insurance for a 62-Year-Old Male In Excellent Health
| Coverage Amount | Monthly Rates Level to Age 87 | Monthly Rates Level to Age 95 |
|---|---|---|
| $100,000 | $110.85 | $144.54 |
| $150,000 | $164.99 | $216.82 |
| $200,000 | $219.13 | $289.09 |
| $250,000 | $247.25 | $329.30 |
| $300,000 | $296.18 | $395.16 |
| $400,000 | $394.05 | $526.88 |
| $500,000 | $466.12 | $635.90 |
*Displayed rates are accurate as of 05/01/2017 and are provided for illustrative and educational purposes only.
Buyer Beware: Despite sounding similar, traditional universal life insurance and guaranteed universal life insurance should not be confused. Traditional universal life insurance policies are often referred to as “forced savings” plans because they require the insured to pay for the cost of their insurance policy and invest extra money to build up a savings. These “savings” are often eaten up by annual investment fees, management fees, and fluctuations in the market. Guaranteed universal life insurance does not require an additional investment to build cash value—you pay for the cost of your insurance policy only, just like term insurance.
Bottom Line: Keep your life insurance policy and your investments separate. Buy a life insurance policy that does not require an investment value, and build your tax-deferred retirement savings by investing into an IRA or a 401k. This will allow you to lock in the cost of your life insurance policy regardless of any changes in the market.
What Is Guaranteed Issue Life Insurance and How Does It Work?
Guaranteed Issue life insurance is a type of whole life insurance that is available to people with serious health issues that would otherwise prevent them from qualifying life insurance. These policies usually offer $5,000 – $25,000 of coverage to applicants who are under the age of 80.
A guaranteed issue life insurance policy does not require a medical exam or medical questions for approval and it usually offers coverage until the age of 100. The downside to these policies is that they require a 2-year waiting period before they offer full coverage. If you pass away during the first 2 years of your coverage, the insurance company will refund all of the money you have paid into your policy plus 10% interest. If you pass away from an accident during the first 2 years of coverage, the insurance company will pay the full death benefit to your beneficiary.
Guaranteed issue life insurance is not available to people with dementia, Alzheimer’s disease, or applicants who are in a nursing home.
Sample Guaranteed Issue Insurance Rates for a 65-Year-Old in Poor Health
Below, we’ve provided some sample guaranteed issue life insurance rates for a 65-year-old in poor health. These rates are guaranteed not to change until the age of 100.
Monthly Rates for a 65-Year-Old in Poor Health, Coverage Guaranteed to Age 100
| Coverage Amount | Male | Female |
|---|---|---|
| $5,000 | $34.60 | $28.19 |
| $10,000 | $68.29 | $55.46 |
| $15,000 | $101.98 | $82.73 |
| $20,000 | $135.67 | $110.00 |
| $25,000 | $169.35 | $137.27 |
*Displayed rates are accurate as of 05/01/2017 and are provided for illustrative and educational purposes only.
Buyer Beware: Guaranteed issue life insurance policies are relatively expensive, and they have a “waiting period” of 2 years before they offer full coverage. If you are buying life insurance to leave money behind for your “final expenses,” make sure you do not purchase a guaranteed issue life insurance policy that expires when you turn 80, otherwise you could end up without coverage when you need it the most. In addition, make sure you purchase a policy that does not have “adjustable rates.” Many whole life insurance policies increase in cost every 1 to 5 years.
Bottom Line: Don’t simply buy a new policy based on its starting price. Read the terms and conditions to determine if your policy will increase in cost over time, or if your policy will become more expensive as you get older. All of the guaranteed issue polices we offer guarantee your rates and coverage until the age of 100.
We Can Help You Find Your Best Rates and Coverage Options
Our agency works with 63 top-rated life insurance companies to help our clients find the most affordable life insurance options available to them. Our agents have multiple years of experience and we’ve helped thousands of clients over the age of 60 with their life insurance needs. Most importantly, we provide our potential clients with a no pressure, consultative approach to life insurance. We are an owner-operated agency and our experienced agents do not have quotas or sales goals to meet.
If you need help determining your best options for life insurance, or if you have questions, feel free to give us a call toll-free at: 855-902-6494. You can also instantly compare life insurance rates from dozens of companies using our free online life insurance quote form below.
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