If you didn’t purchase life insurance at an early age, you might find it daunting when you’re a senior. This is because you will have to consider several factors, including insurance company stability, premium rates, coverage amount, eligibility, customer service, and many more.
Unfortunately, most seniors, especially those over 60, find undergoing this process challenging, resulting in the inability to choose the best life insurance.
If you’re one of them, don’t worry; here we are going to talk about an ultimate guide to life insurance for seniors over 60 for your convenience. So don’t go anywhere; stay tuned by reading this entire context.
Is It Really Possible To Purchase Life Insurance For Seniors Over 60?
Many seniors over 60 believe they are not eligible for life insurance due to their age. But their assumption is completely wrong. In fact, seniors who hadn’t purchased at an early age go for life insurance extensively every day.
In general, insurance companies will charge you more for your plan as you get older because they will see you as a higher risk. However, it doesn’t mean you can’t purchase life insurance when you are over 60.
You will just have to find life insurance with the best plan that fulfils your needs. And you can do that by comparing different quotes from insurance companies to see the cost of your plan.
Why Do Seniors Over 60 Needed Life Insurance?
No matter what your age is, purchasing a life insurance policy is really worth it. If you still think life insurance is unnecessary as a senior, check the section. Here we have talked about some significant advantages of having life insurance, even after 60.
Pay Off Funeral Expenses
According to the National Funeral Directors Association, an average funeral costs around $6,971 to $7,848 as of 2021. That means a standard funeral will cost around $10,000 or even more.
Bearing such a large amount can be challenging for your family or belongings after your death. If you have life insurance, your belongings won’t have to worry about paying the funeral costs. Your policy coverage will be enough to pay off your final expenses.
Pay Off Left Debt
No one can tell when you will die, especially if you’re already spent more than half your age. So, it isn’t unbelievable that you may die before paying your debt, such as home loans, car loans, or other personal loans.
Paying off such debt will be troublesome for your belongings or family in your absence. In that case, if you leave any life insurance, the coverage amount will help to pay off your left loans and debts, along with your funeral and burial expenses.
Support Family Financially
If you’re the only earning person in your family, it can be a nightmare for the family to spend a day after your death. The situation will be worse if you have any children who need a lump sum to pay off education expenses.
In such situations, if you leave any life insurance policy, the coverage your registered beneficiary gets after your death will be sufficient to support your family financially. Even the coverage amount can be used to pay off your children’s educational expenses.
Pay Off Medical Expenses
Once you become older, you may have to suffer from different diseases. In critical situations, you will need to be in the hospital for several days. Staying in the hospital will require paying off a large amount of money on hospital care, medicine, doctor consultations, etc.
Bearing such expenses will be troublesome for your belongings or you due to old age. But having life insurance will support you financially whenever you fall into medical situations.
Guide to Life Insurance for Seniors Over 60
After reading the above discussion, you may be wondering about purchasing a life insurance policy. Well, you will just have to follow a simple procedure as shown below to purchase life insurance.
Step 1: Locate For An Ideal Life Insurance Carrier
There are several life insurance companies you will find in your area. But you have to minimize the list by choosing only companies that offer policies to seniors.
Once you make the list, compare them with one another to find out the best deals. In that case, you can request quotes from insurance providers to make a side-by-side comparison.
Step 2: Decide Your Life Insurance Coverage
Deciding the coverage is the most important requirement for life insurance, especially when your age is above 60. As a senior, you may only get a short period to pay premiums.
So, you should decide your coverage amount that will be enough to pay off your funeral expenses and support your family financially. However, if your belongings have sufficient income, you can lessen the amount of coverage.
Step 3: Choose The Policy Type
Most insurance providers usually offer three different types of life insurance policies, such as term, whole, and universal life insurance policies. Term and whole life insurance are common plans for all age people, even if you are over 60.
In contrast, universal life (UL) insurance is known as a permanent life insurance policy that offers a guaranteed death benefit. Choose any of the policies from them which will meet your requirements.
Step 4: Insurance Premium
Insurance companies usually set a fixed amount of money known as premiums according to different factors, including the insured’s age and health condition.
So, you have to ensure you can pay the premium every month or annually before purchasing a life insurance policy. In that case, choosing a policy whose premium you can easily afford will be better.
Step 5: Fill Out The Application Form
Once you have decided everything, you have to fill out an application form similar to a loan application. At this stage, the application requires filling up your basic information, such as your name, present and permanent address, contact details, financial details, and social security number.
Remember you also have to mention a beneficiary who will get the coverage amount after your death. After completing the application form, submit it to your preferred insurance company.
Step 6: Attain Phone Interviews & Medical Test
Some insurance companies make phone interviews once they receive the application. Then, they fixed a date to take medical tests of the insured.
If you overcome all the tests, you have to wait for the insurer’s approval. Most insurance companies usually take around 15 days to approve or reject a life insurance policy.
Different Types Of Life Insurance For Seniors Over 60
Insurance companies offer several types of life insurance policies, including whole, term, and universal life insurance. These are the most common plan and ideal for insured over 60. Below we have made a brief discussion about these plans.
● Term Life Insurance
Term life insurance is sometimes called pure life insurance, which comes with fixed rates for the full-length policy. Seniors over 60 can purchase this policy for a 20-year term. And insurance companies will determine the premium of this policy based on the policyholder’s age, gender, health, and coverage.
In some cases, insureds have to undergo a medical exam to check their life expectancy. The selected beneficiary will receive the face value of the policy if the insured passes away during the policy period.
● Whole Life Insurance
Whole life insurance is a permanent policy since it doesn’t expire. This policy will rest active as long as you pay premiums. But the cost of a whole life insurance policy becomes expensive according to the insured age.
Like term life insurance, this insurance requires policyholders to obtain a medical exam, but a specific type of policy, like a final expense policy, doesn’t require any medical exam. Although whole Life Insurance is more costly than other policies, this plan is good for those 60 or older.
● Universal Life Insurance
Universal life (UL) insurance blends with term and whole life insurance, which works as a permanent policy. This policy comes with lower monthly premium payments compared to whole life insurance.
Another good thing about this UL insurance is you can upgrade your policy anytime if you want. In general, universal life insurance will be an ideal choice for seniors looking for a permanent policy with a lower rate.
Through this context, we have tried to provide a complete guide to life insurance for seniors over 60. We hope you don’t have to experience any trouble while purchasing life insurance from now on.
Simply following the step-by-step guideline discussed above, you can purchase the best life insurance plan. However you will find various life insurance policies, but you should choose one that will meet your needs.
In that case, you can check out the section above to know some common types of life insurance policies good for seniors over 60.