If you’re a senior or over the age of 60 we have good news for you—it’s still possible to get term life insurance. And in this article we’ll explain why you should be considering term life insurance, how the process works if you’re older than 60, and common mistakes to avoid when purchasing life insurance later in life.
While life insurance for those over 60 is readily available, there’s 5 important issues you’ll want to keep in mind during your search:
- Where you are buying and shopping for life insurance
- How you present your case to life insurance carriers
- The type of policy and coverage options your select
- How you current health impacts your life insurance options
- How waiting too long can increase the cost of your life insurance and reduce your options for securing the policy you desire
America is Aging—and Many Older People Now Need Life Insurance
The fact is baby boomers are getting old—fast. And more than ever, baby boomers need life insurance to protect their loved ones from financial burden when they die. Let’s have a look at a few of the important statistics driving demographic changes here in the United States:
Life expectancy is on the rise and projected to grow over the next 25 years—we’ll see more people reach the age of 80 than ever.
The changing distribution of age in the US means that almost 15% of the entire population is now over the age of 65 (and growing). By 2030, older adults will make up approximately 20% of the entire population.
Improvements in medical technology, health and wellness and workplace safety mean people are working longer and living longer.
The size of the population over age 65 will more than double over the next 25 years.
Chronic conditions like diabetes, heart disease, depression, asthma, and cancer are still the number one threat to older Americans.
But what does this have to do with life insurance for people over the age of 60?
Life insurance demand and (as economics have taught us) premiums are affected by changes in the demographic and social factors. Not to mention, if policy holders are living longer, they may outlive their policy terms more frequently, or they may have to pay their policies for a longer period of time.
Life Insurance Basics for People Over Age 60
Life insurance is particularly important for people over age 60. As you age your chances of sudden death are increasing. Life insurance can protect your family members from major financial hardship should you suddenly and unexpectedly pass away. If you don’t have life insurance in place now, acquiring the right policy could protect your family members from footing the bill when you pass away.
Can I Still Get Life Insurance if I’m Over Age 60?
The short answer is yes, you’re still eligible to get life insurance, even if you’re over age 60. Both term life insurance and permanent life insurance policies are available for people of older ages. However, keep in mind that all insurance carriers decide what age they stop offering new policies for sale–an experienced broker will be able to guide you through the process and help you choose the right company depending on your age. In most cases, the cut-off period only applies to term life insurance coverage—but the only way to find out is to request a free quote and begin the process.
What’s With Term Insurance and Why Might it Not be Available?
If you’re 67 years old, and want to buy a 30 year term policy that coverage will last until you’re 97. The odds of you dying before age 97 are very high. That makes selling a 30 year term policy a losing proposition for the insurance carrier. Instead, a carrier may offer policy with a shorter duration or a different type of policy all together.
Do I Even Need Life Insurance if I’m Over Age 60?
Only you can decide whether or not you need life insurance. In our experience many senior citizens need life insurance for a few common reasons:
- To prevent their family from absorbing mortgage costs
- To prevent their family from paying for funeral and burial expenses
- To replace and lost income from a working partner or pension income
- To lessen the need for retirement savings
- If you’re planning a family estate or trust
- If you own a small business or are a partner in a business
- If you have outstanding loans or other debt obligations
How Do I Get Coverage if I’m Over Age 60
The clock is ticking. As we’ve already said you can still secure coverage if you’re over age 60 and want to secure life insurance. The best way to get life insurance at this age is to contact an experienced broker that will take the time to learn about your unique situation.