In your early 30s, you may have looked at life insurance as an absolute necessity to provide for a spouse, children, or other family members in the event of your death. But now, when you’re nearing retirement age and most likely have fewer people who depend on you financially, you may view life insurance as simply a way to pay for your funeral someday.
However your insurance needs have changed, and whatever they happen to be, having a sufficient life insurance policy is an important part of financial planning – and just as critical for your own peace of mind and security.
Here we’ll discuss life insurance for seniors over 60, along with factors to take into consideration before you purchase a policy.
Take a Good Look at Your Finances
Before you consider any other factors when looking for a policy, look at your financial situation and anticipated needs.
If you have little to no debt and your home is paid off, you may need only a small death benefit payout to cover your final expenses like burial or cremation. You may also choose a higher amount of coverage just in case you incur medical bills prior to your passing.
If you’ll be leaving behind any debts, it’s important to select a policy with a high enough payout that your loved ones won’t be saddled with a mortgage or other expenses. This will help to ensure that your family and friends can celebrate your life without stressing about how to pay for your funeral.
Let’s not forget that some individuals remain in the workforce well into their 60s. If you’re one such person and you have loved ones who depend on your income, you need a life insurance policy with enough coverage to help sustain your family in your unexpected absence. Your life situation, along with your finances, will be the pivotal factors in selecting a policy.
Factor in Your Health
In general, the older you are, the more expensive life insurance premiums are. But your age isn’t the sole factor in determining premium rates. Your health and medical history will also play a role.
If you have chronic conditions or have had serious medical conditions in the past, providers may be reluctant to offer you coverage. You would be considered a high risk, and thus any coverage they offer may come with a high price tag. Providers will also look at your family’s medical history, as diseases like cancer and chronic health conditions such as diabetes often have genetic links.
Eligibility Requirements for Life Insurance
If you’re over the age of 60, you can still qualify for a term life insurance policy, but the term may be limited to 20 years maximum, and your premiums may be high. Term policies tend to be more difficult to acquire as you get older, and some providers won’t even offer term life insurance to people over the age of 80 or 85.
If your age or health bar you from a term life insurance policy, you may want to consider a whole life insurance policy instead.
Whole life insurance has no term period – your coverage does not expire as long as you’re making your monthly premium payments. Whole life insurance also provides a death benefit payout for beneficiaries, just like term insurance; but keep in mind that this type of insurance tends to carry higher monthly premiums due to the fact that it never expires. You can also choose a lesser amount of coverage if you only need to pay for final expenses, and this can help keep your premiums low.
Get the Coverage You Need from Americo Senior Life
If you’re still wondering what the best life insurance company for seniors is, or you have questions on what type of coverage is best for you, talk to an Americo Senior Life representative today or visit our FAQ sections. Our whole life insurance policies over a range of coverage options so you can provide the best care for your loved ones.
Don’t let your age or health discourage you from getting a life insurance policy. Americo Senior Life is here to help!