At 60 years old you are probably counting down the years to your retirement. A lot of people hope to gain financial freedom when they get to this age; unfortunately, far too many individuals find themselves needing life insurance in their 60s for one reason or the other: maybe you still have people depending on you financially, or you have a high net worth, or you intend to live off your cash value. Life insurance quotes increase as you age, plus age-related diseases can make it difficult to find an affordable policy. On the plus side, at this stage in life, you are in a good position to purchase coverage that suits your needs.
Once you hit 60, your life insurance policy options become limited. Your monthly costs will depend on the life insurance policy you take out. Let’s assume you are a 60-year-old in perfect health and you take a $500,000 20-year term life insurance policy. Monthly premiums at some of the best life insurance companies for seniors for such a policy include $205.97 and $145.00 for men and women respectively at Banner, $207.40 and $145.01 at Pacific Life, $213.46 and $149.23 at Lincoln Financial, as well as $250.25 and $171.06 at Prudential
Thanks to modern medicine, better living standards, and everyone trying to adopt a healthy lifestyle, people are living longer. Life expectancy in the US now stands at 78.69 years. The fact that you’ve hit 60 means you’ve passed several major milestones in life, and if you live healthily, expect to live 80 and beyond. Life insurance premiums are based on age and health. Therefore, as a healthy 60 year-old, you can still qualify for both permanent and term coverage — so long as you sign up as soon as possible
Typical Cost of Life Insurance
The cost of life insurance varies depending on one’s gender, age, medical history, family medical history, occupation, type of policy, and length of the policy. For a healthy 60-year-old, the average cost of a $500,000 20-year term life insurance policy is around $200 a month. There’s no telling what the future holds; so, here’s some additional information on how to sell your life insurance in the event that you can no longer afford to pay the premiums.
What is the Best Life Insurance Policy
Every policy reflects the policyholder’s unique needs, which means the best life insurance policy is subjective. However, for most 60-year-olds, term life and universal life are ideal options. They are affordable, flexible and guarantee death benefits. Term life provides protection for a set period of time. It’s the most basic form of protection for most seniors, considering they have fewer debts and are making other contributions towards their 401ks. Universal life offers long-term protection and generates cash value over time. Along with appealing to those who want longer coverage, it’s also ideal for those who want a life insurance policy for the purposes of estate planning.
How to Calculate Your Life Insurance Needs
Figuring out how much life insurance you need can be a bit confusing. When calculating life insurance needs, consider your short-term and long-term financial needs. Some of the factors to keep in mind are outstanding debt, dependents, funeral expenses, estate planning, social security, business ownership, inheritance, and care services. Your insurance provider should be able to help you make the right choice.