Life Insurance At 65: What You Need To Know

Life insurance is a valuable financial tool that provides peace of mind and financial protection for loved ones in the event of an individual's death. While the cost of life insurance often increases with age, several options are available for seniors seeking coverage. One such option is 65 Life, a whole life insurance policy offered by Northwestern Mutual, a reputable insurer known for its competitive rates and diverse product offerings. With 65 Life, policyholders pay level premiums until the age of 65, after which coverage remains in place without any further payments. This type of policy can be an attractive choice for seniors looking for lifetime coverage with predictable premiums.

65 Life: You pay level premiums until age 65, then coverage remains but without further payments

Northwestern Mutual's 65 Life whole life insurance policy allows you to pay level premiums until the age of 65, after which your coverage will remain in place without any further payments required. This policy is ideal for those seeking lifelong coverage with the benefit of locked-in premiums until retirement age.

With the 65 Life policy, you can rest assured that your premiums will remain consistent and predictable. Your premiums will not increase with age or changing health conditions, providing stability and peace of mind. This policy is particularly attractive to those who wish to avoid the uncertainty of fluctuating premiums associated with other insurance plans.

The 65 Life policy also offers the advantage of lifelong coverage. Once you reach the age of 65, your insurance coverage will continue without the need for ongoing payments. This feature ensures that you are protected for life, providing valuable peace of mind for yourself and your loved ones.

Additionally, the 65 Life policy accrues cash value over time. This means that the policy can be used to support various financial goals and serve as a versatile component of your overall financial plan. The cash value can be accessed to help with expenses such as college tuition or retirement funding.

Northwestern Mutual's 65 Life whole life insurance policy is a comprehensive solution for individuals seeking stable premiums, lifelong coverage, and the added flexibility of cash value accumulation. It is essential to carefully review the terms and conditions, as well as consult with a financial advisor, to ensure that this policy aligns with your specific needs and goals.

Whole life insurance is available for over 65s

Life insurance is a way to provide for your loved ones after you've passed. It can be used to pay off large debts, cover small bills, or leave cash benefits for your family. While it can be challenging to find the right policy for seniors, whole life insurance is available for over 65s.

Whole life insurance, also known as permanent life insurance, provides coverage for the entirety of the policyholder's life, as long as the policy remains in force. This type of insurance accrues cash value over time, which can be used to support other financial goals, such as paying for college or funding retirement. Additionally, whole life insurance policies offer consistent premiums, so you won't have to worry about unexpected increases in costs.

Some companies, like MassMutual, offer whole life insurance to applicants up to the age of 90. Their Whole Life 100 policy is available to applicants up to age 90 and offers coverage levels starting at $25,000. Similarly, American Family Life Insurance Company's DreamSecure Senior Whole Life Insurance is designed for seniors aged 50-80 and offers coverage options of $10,000 and $15,000.

When considering whole life insurance for over 65s, it's important to keep in mind that the premiums tend to be higher than those of term life insurance. However, the benefits of lifelong coverage and the ability to build cash value make it a valuable option for seniors who want to ensure their loved ones are taken care of after they're gone.

No-exam life insurance is an option for over 65s

If you're over 65 and looking for life insurance, you may be considering a no-medical-exam policy. These policies can be a convenient option if you want quick coverage without the hassle of a medical exam. While no-exam life insurance is generally best suited for younger buyers in excellent health, there are still options available for older adults.

With traditional life insurance policies, applicants typically have to fill out a questionnaire about their health and lifestyle and undergo a medical exam. No-exam policies remove the medical exam from the application process, and depending on the type of policy, you may not need to answer any health questions at all.

Who offers no-exam life insurance for over 65s?

Several companies offer no-exam life insurance for seniors, including:

• AARP: AARP offers term life, whole life, and guaranteed acceptance plans with no medical exams for people under 70. Their whole life insurance plans are available for seniors up to 80 years old, and their term life plans can be converted into whole life plans before they expire.
• Globe Life Insurance: Globe Life offers term, whole, and final expense plans with no medical exams for those under 75. Their term life plans are available until age 80 or 90, depending on your location, and their whole life plans can be converted from term life plans before they expire.
• TruStage: TruStage is an insurance broker that helps customers find no-exam life insurance plans with higher coverage amounts. They offer term, whole, and guaranteed acceptance plans without medical exams, and their term life plans are available until age 80.
• Mutual of Omaha: Mutual of Omaha offers whole life insurance plans with no medical exams for adults up to 85 years old (75 in New York). Their plans have benefits ranging from $2,000 to $25,000 and are easy to customize based on your budget.
• Fidelity Life: Fidelity Life offers no-exam life insurance for older adults between 50 and 70, with same-day approval and coverage. They have final expense plans and term life plans with maximum benefits up to $150,000.

No-exam life insurance can be a great option for older adults who want quick and convenient coverage without undergoing a medical exam. However, there are also some considerations to keep in mind:

Pros:

• No hassle of a medical exam: No-exam policies can save you the time and cost of undergoing a medical exam.
• Quick approval process: Many no-exam policies offer same-day approval and coverage.
• Options for those with health issues: No-exam policies can be a good option for those with pre-existing health conditions who may not qualify for traditional life insurance.

Cons:

• Limited coverage amounts: No-exam policies may have lower maximum coverage amounts compared to traditional policies.
• Higher costs: No-exam policies are typically more expensive than traditional policies because the insurer is taking on more risk.
• Limited plan options: Not all types of life insurance plans are available without a medical exam.
• Potential for rejection: Even without a medical exam, you can still be rejected for a no-exam policy based on your health status.

When choosing a no-exam life insurance policy, consider the following factors:

• Age restrictions: Review the age restrictions for applying and ensure that the policy is suitable for your age group.
• Coverage amount: Determine the amount of coverage you need and check the maximum coverage offered by the policy.
• Premiums: Compare the premiums charged by different insurers and choose one that fits your budget.
• Customization options: Look for policies that allow you to customize your plan based on your budget and coverage needs.
• Customer reviews: Read reviews from other seniors who have purchased no-exam life insurance to get an idea of their experience with the insurer.

Whole life insurance accrues cash value

Whole life insurance is a form of permanent life insurance that covers the policyholder for their entire life, as long as the policy is in place. Whole life insurance policies are more expensive than term life insurance policies because they accrue cash value over time. This cash value is a tax-favoured investment account that grows through interest accruals and dividends. The cash value can be used to support other financial goals, such as paying for college or funding retirement.

When you pay your premiums on a whole life insurance policy, a portion of the payments goes into the cash value, which grows over time. This contributes to its steady growth. The cash value in a whole life insurance policy grows at a fixed rate determined by the policy's terms, and it is guaranteed to grow, even if you withdraw or borrow from the cash value. The cash value can be used for various purposes, such as borrowing cash, withdrawing cash, or paying policy premiums.

Whole life insurance policies typically have a fixed monthly premium, a fixed rate of growth for the cash value, and a guaranteed death benefit amount. The cash value of a whole life insurance policy can be accessed in several ways, including policy loans, withdrawals, or surrender of the policy. However, it's important to note that withdrawing more than the amount you've paid into the cash value may result in taxes.

Whole life insurance is a versatile addition to a financial plan, offering both a death benefit and benefits available while the policyholder is still alive. It is an excellent option for those looking for lifelong coverage and wanting to build a nest egg over several decades.

Whole life insurance can be used to support financial goals

Whole life insurance is a type of permanent life insurance that covers you for your entire life, as long as you keep up with premium payments. It is more expensive than term life insurance because people with whole life policies are guaranteed a death benefit when they die. Term life insurance, on the other hand, offers coverage for a specific period, such as 20 or 30 years, and is more affordable.

Whole life insurance can be a valuable addition to your financial plan as it offers several benefits that support your financial goals. Here are some ways whole life insurance can help:

Long-term financial security:

Whole life insurance provides lifelong coverage, meaning your beneficiaries will receive a payout when you pass away, regardless of when that occurs, as long as you've kept up with premium payments. This can be especially important if you have loved ones who depend on your income or if you want to leave a financial legacy.

Savings and investment component:

Whole life insurance includes a savings component called "cash value," which accumulates over time. This cash value grows with contractual guarantees and may also be increased through dividends from the insurance company. You can borrow against or withdraw this cash value to meet financial goals, such as buying a home or supplementing your retirement income.

Tax advantages:

The cash value component of whole life insurance offers tax advantages. The money in this account grows tax-free, similar to a 401(k) or IRA. Additionally, policy loans are tax-free, and withdrawals are tax-free up to the total amount of premiums paid. Whole life insurance can be a useful tool for tax-advantaged growth and income planning.

Stability and diversification:

Whole life insurance provides stability to your financial plan as it is a non-correlated asset class. It performs independently of the stock and bond markets, helping to balance and stabilize your portfolio, especially during volatile market periods. It is a diversification tool, reducing overall portfolio risk by placing a portion of your investments in safer assets.

Support for businesses:

Whole life insurance can be beneficial for businesses as well. It can serve as a contingency plan for the loss of a key employee or partner. The death benefit can provide financial support or help remaining owners buy out the deceased partner's share of the business.

Additional riders and benefits:

Whole life insurance policies often offer additional riders, such as disability and long-term care protection. You can also purchase riders that give your beneficiaries both the death benefit and the accumulated cash value. These riders provide enhanced benefits but will result in higher annual premiums.

Frequently asked questions