Life Insurance For Seniors: Options For 60-Year-Olds

Life insurance for people over 60 is a useful tool to help your loved ones pay for your final expenses. While many people buy a policy when they are younger, there are still many options for people over 60. The best type of life insurance for a 60-year-old depends on their financial situation, health, and needs. For example, if you are still working and want to protect your income, a term life insurance policy that covers the years you are working may be a good option. If you want to cover final expenses such as a funeral, a permanent life insurance policy may be a better choice.

Life insurance for income protection

Life insurance is a useful tool to help your loved ones pay for your final expenses. Although many people buy a policy when they are younger, there are many options for people over 60.

Life insurance can be particularly important for income protection if you are still working in your 60s. If you and your spouse depend on your income, it is wise to back that income up with life insurance.

The cost of life insurance for seniors over 60 varies based on several factors, including the type of policy, your health, and your age. The price of a policy will be more expensive the older you are, so locking in an affordable rate is key.

Whole Life Insurance

Whole life insurance is sometimes called permanent life insurance because it doesn't expire. It stays in effect as long as you make your payments. These plans usually require a health exam, but certain types of whole life insurance (like final expense insurance) can be issued without a medical exam. A final expense whole life plan can be issued based on answers to health questions on the application.

Since whole life insurance policies build cash value and have a higher monthly cost than other plans, they are not right for every senior. If money is tight, the payments may not fit into your monthly budget, and if you are in poor health, you may not live long enough to benefit from the accrued value. But if you are in your early 60s and in good health, there are advantages to whole life insurance. For example, some policies allow you to borrow money from them, but the loan has to be paid back while the owner is still alive. If it isn't, the amount will be taken out of the payout after the owner passes away.

Term Life Insurance

Term life insurance rates are fixed for the full length of your policy. They usually require a health test and are sold in terms between 10 and 30 years, but the longest policy you can buy when you are over 60 is 20 years. Knowing exactly what you will pay each month in fees is helpful for seniors on a budget, especially those on a fixed income. The downside of term life insurance for seniors is that if you outlive your policy, you won't receive a death benefit. You will need to buy a new plan, which gets more expensive as you age.

Convertible Term Life Insurance

Convertible term life insurance has a period when it can be changed to permanent (whole life) policies without a medical exam. Some companies offer partial term conversions, where you leave part of your original policy in place. You often don't have to pay a fee to use either of these options. When you convert a term life policy, the cost of your monthly payments will rise over time, just as they would with a standard whole life plan. However, they will be cheaper than if you bought a new whole life policy in your 60s.

Universal Life Insurance

Universal life insurance is a blend of term and whole life insurance. It is a permanent policy with a guaranteed death benefit, but its monthly payments are lower than standard whole life plans. It usually calls for a health test. If your budget changes or you decide you want a smaller policy, you have the option of updating your plan to a lower amount, which is cheaper than getting a new policy. Some companies also give refunds for some or all of your payments after you have had the policy for a certain amount of time, usually 20 years.

Guaranteed Universal Life Insurance (GUL)

This type of universal life insurance doesn't require a medical test or health questions, and it has guaranteed acceptance. These plans are available to seniors of all ages, no matter their health. While the payments are low, your policy may be canceled if you miss even one, so it is important to make sure you always pay them on time.

Final Expense Life Insurance

Also called burial or funeral insurance, this is a type of permanent insurance that is usually used along with traditional whole and term life policies to pay funeral costs. You only have to answer a few health questions on the application, and you don't have to take a health test to get it. The rates are much lower than other insurance plans, but the payouts are also smaller, usually between $5,000 and $15,000. Since rates start as low as $15 per month, burial or funeral insurance for seniors is usually the most affordable life insurance for people over 50.

Life insurance for outstanding debts

Life insurance is a useful tool for helping your loved ones pay your final expenses. Although many people buy a policy in their younger years, there are many senior life insurance options for people over 60.

The price of life insurance for seniors over 60 varies based on several factors, including the type of insurance, the insured amount, and the health of the individual. The most common types of life insurance for seniors are guaranteed universal, whole life, term life, and universal life insurance.

Whole life insurance is sometimes called permanent life insurance because it doesn't expire. It stays in effect as long as you make your payments. The cost of the policy is more expensive the older you are, so locking in an affordable rate is key. These plans usually require a health exam, but certain types of whole life insurance (like final expense insurance) can be issued without a medical exam. A final expense whole life plan can be issued based on answers to health questions on the application.

Term life insurance is the cheapest and best option for most life insurance buyers who need coverage for a specific financial challenge, such as covering a mortgage or providing for a loved one. It is usually sold in terms between 10 and 30 years, but the longest policy you can buy when you’re over 60 is 20 years.

Universal life insurance is a blend of term and whole life insurance. It’s a permanent policy with a guaranteed death benefit, but its monthly payments are lower than standard whole life plans. It usually calls for a health test.

Guaranteed universal life insurance doesn't require a medical test or health questions, and it has guaranteed acceptance. These plans are available to seniors of all ages, no matter their health. While the payments are low, your policy may be canceled if you miss even one, so it’s important to make sure you always pay them on time.

Credit life insurance is another type of insurance that can be used to pay off a borrower's outstanding debts, such as a mortgage or car loan, if the policyholder dies. The death benefit of a credit life insurance policy decreases as the policyholder's debt decreases. The payout on a credit life insurance policy goes to the lender, not to your heirs, and it is against the law for lenders to require credit insurance.

While life insurance can be used to pay off outstanding debts, it is important to note that not all debt is inherited. In general, the assets in your estate are used to pay off your debts when you die, and if there is not enough money in the estate, the debt goes unpaid. However, there are circumstances where others may be responsible for the remaining balance, such as cosigners, joint owners, or spouses in community property states.

Life insurance for final life expenses

Life Insurance for Final Expenses

Life insurance is a useful tool to help your loved ones pay for your final expenses. While many people buy a policy when they are younger, there are also options for people over 60.

Whole Life Insurance

Whole life insurance is also called permanent life insurance because it doesn't expire as long as you make your payments. It is more expensive the older you get, so locking in an affordable rate is key. These plans usually require a health exam, but certain types, like final expense insurance, can be issued without a medical exam. A final expense whole life plan can be issued based on answers to health questions on the application.

Since whole life insurance policies build cash value and have a higher monthly cost than other plans, they might not be right for every senior. But if you're in your early 60s and in good health, there are advantages to whole life insurance. For example, some policies allow you to borrow money from them, but the loan has to be paid back while the owner is still alive. If it's not, the amount will be taken out of the payout after the owner passes away.

Term Life Insurance

Whole life and term life insurance are the most common plans for people of all ages. Term life insurance rates are fixed for the full length of the policy, which is usually sold in terms between 10 and 30 years. The longest policy you can buy when you're over 60 is 20 years. Knowing exactly what you'll pay each month in fees is helpful for seniors on a budget, especially those on a fixed income. The downside is that if you outlive your policy, you won't receive the death benefit, and buying a new plan gets more expensive as you age.

Convertible Term Life Insurance

Convertible term life insurance can be changed to permanent (whole life) policies without a medical exam. You often don't have to pay a fee to use this option. When you convert a term life policy, the cost of your monthly payments will rise over time, but they'll be cheaper than if you bought a new whole life policy in your 60s.

Universal Life Insurance

Universal life insurance is a blend of term and whole life insurance. It's a permanent policy with a guaranteed death benefit, but its monthly payments are lower than standard whole life plans. If your budget changes or you want a smaller policy, you can update your plan to a lower amount, which is cheaper than getting a new policy. Some companies also give refunds for some or all of your payments after you've had the policy for a certain amount of time, usually 20 years.

Guaranteed Universal Life Insurance

This type of universal life insurance doesn't require a medical test or health questions, and it has guaranteed acceptance. These plans are available to seniors of all ages, no matter their health. While the payments are low, your policy may be canceled if you miss even one, so it's important to make sure you always pay your premiums on time.

Final Expense Insurance

Final expense insurance is a whole life policy that pays medical bills and funeral expenses when you die. It's also known as burial or funeral insurance and is a popular choice among seniors because of its affordable price, smaller benefit amounts, and emphasis on covering funeral costs. The average final expense policy costs between $30 and $70 a month and depends on your age, sex, health, coverage amount, and the life insurance company you choose. If you have significant health conditions or are over 70, your premium will probably be higher and may cost between $70 and $120 a month. Younger applicants who are in good health may qualify for rates in the $20 to $50 range.

Final expense insurance offers competitive, fixed premiums that do not change over time. The cash benefit can help cover funeral and burial costs, medical needs, or anything else that will help loved ones. There's no physical exam needed; you just need to answer a few health questions to apply for coverage. Your final expense insurance coverage remains in place as long as your premiums are paid up. These plans also build cash value, which can be used to borrow against or as a non-forfeiture benefit.

Life insurance for senior veterans

Life insurance is a valuable tool that helps your loved ones pay for your final expenses. While many people buy a policy when they are younger, there are several senior life insurance options for people over 60.

Veterans Affairs Life Insurance (VALife)

VALife is a guaranteed acceptance whole life insurance program for service-connected veterans aged 80 and under. It offers coverage of up to $40,000, with lesser amounts available in increments of $10,000. The elected coverage takes effect two years after enrolment, provided that premiums are paid during this period.

Servicemembers' Group Life Insurance (SGLI)

SGLI is a low-cost group term life insurance program for service members. Coverage can be extended for up to two years if the member is totally disabled at separation. SGLI coverage is automatic for most active-duty service members, including those in the Ready Reserve and National Guard, and members of the Commissioned Corps of the National Oceanic and Atmospheric Administration and the Public Health Service.

Veterans' Group Life Insurance (VGLI)

VGLI allows veterans to convert their SGLI to a civilian program of lifetime renewable term coverage after separation from service. Servicemembers with full-time SGLI coverage are eligible to convert to VGLI.

Family Servicemembers' Group Life Insurance (FSGLI)

FSGLI insures spouses and children of service members with SGLI coverage. Spousal coverage may not exceed the service member's coverage, but dependent children are automatically covered at no charge.

Servicemembers' Group Life Insurance Traumatic Injury Protection (TSGLI)

TSGLI is an automatic feature of SGLI that provides payments to service members who suffer losses, such as amputations, blindness, and paraplegia, due to traumatic injuries that occur in service.

Veterans' Mortgage Life Insurance (VMLI)

VMLI provides mortgage life insurance protection to disabled veterans who have been approved for a VA Specially Adapted Housing (SAH) grant and have a mortgage on their home.

Service-Disabled Veterans' Life Insurance (S-DVI)

S-DVI is closed to new enrolments as of December 31, 2022. However, the VALife program began accepting applications on January 1, 2023.

Private Life Insurance Companies

Veterans can also explore life insurance plans offered by private insurance companies, which may offer more benefits than SGLI and VGLI, such as higher coverage amounts, greater flexibility, and lower prices. Term life insurance and whole life insurance are two types of policies to consider.

Term Life Insurance

This type of policy provides coverage for a specific length of time, such as 10 to 30 years. Your beneficiaries will receive a death benefit if you pass away before the policy expires.

Whole Life Insurance

Whole life insurance plans come with lifelong coverage and include a cash value component that grows over time. This policy typically has higher premiums than term life insurance.

In summary, while life insurance for seniors over 60 can be more expensive, it is still possible to find affordable options through the VA or private insurance companies. It is important to compare different plans and consider your specific needs and budget when making a decision.

Life insurance eligibility for seniors over 60

Life insurance is a valuable tool that helps your loved ones pay for your final expenses after you pass away. While many people buy a policy when they are younger, there are several options for those over 60.

Eligibility

Seniors over 60 are eligible for life insurance, although finding an affordable policy is crucial. Applicants in their 60s will find few eligibility restrictions, but it's important to decide whether short-term or long-term coverage is best. Term life insurance, which is cheaper, is ideal for short-term needs, such as income protection if you're still working. Permanent life insurance is more suitable for long-term needs, such as final expenses like a funeral or burial.

Available Policies

Final expense life insurance, also called burial or funeral insurance, is a type of permanent insurance that's usually used with traditional whole and term life policies to pay funeral costs. It's one of the most affordable options for people over 50, with rates as low as $15 per month.

Whole life insurance, or permanent life insurance, doesn't expire as long as you make your payments. However, it's more expensive the older you are. These policies usually require a health exam, but final expense insurance can be issued without one, based on answers to health questions on the application.

Term life insurance rates are fixed for the full length of the policy, usually 10 to 30 years, but the longest policy available to those over 60 is 20 years. While term life insurance is more affordable, the downside is that if you outlive your policy, you won't receive the death benefit, and buying a new plan gets more expensive as you age.

Convertible term life insurance can be changed to a permanent policy without a medical exam. This is a good option for seniors as it provides permanent coverage without the need for a health test.

Universal life insurance is a blend of term and whole life insurance, offering a permanent policy with a guaranteed death benefit and lower monthly payments than whole life plans. You can update your plan to a lower amount if your budget changes, and some companies offer refunds after a certain period, usually 20 years.

Guaranteed universal life insurance doesn't require a medical test or health questions, and it has guaranteed acceptance for seniors of all ages, regardless of their health. However, your policy may be canceled if you miss a payment.

Factors Affecting Cost

The price of life insurance for seniors over 60 varies based on factors such as gender and coverage amount. Women typically pay lower rates than men because they have longer lifespans. Higher coverage levels also cost more. Additionally, life insurance prices are often much higher for smokers.

Frequently asked questions