Life Insurance Quotes Over 60, Sample Rates and Coverage Types

life insurance quotes over 60

A lot of people in their 60’s don’t realize they may need coverage and even those who do, hesitate to purchase policies. Most individuals assume that it is impossible to buy a reliable life insurance policy at that age given the possible health conditions as well as the ridiculously high prices. 

That is not the case, you can buy a good life insurance policy even with a health issue, and it doesn’t have to be extremely expensive. Good healthcare systems have increased the trust insurance providers have with seniors over 60, enabling them to tailor insurance policies for such individuals with different needs. 

Whether you are looking for a term policy, a guaranteed issue, or a whole life insurance policy, there are different alternatives to choose from. Let’s dive into everything you need to know for life insurance over 60 and present some sample quotes for you. 

Do You Need Life Insurance?

You might be wondering whether life insurance is important to you at your age. Death is an unpredictable event, and you cannot really pin down the actual time you will die. Money can never replace anyone, but having a life insurance policy in place helps to cover future uncertainties in life for your loved ones after you die. 

Apart from protecting your heirs, life insurance can be used in many different ways. That said, here are valid reasons why you might need life insurance even when you are over 60 years old.

Family Protection

Not everyone has a family in their early 20’s, other people start theirs later in life. So at 60 years, some people still have children who depend on them financially. A life insurance policy would help pay for the children’s education costs, allow your surviving spouse to take a break from work to manage the family’s needs, as well as protect the family home by paying off the mortgage. 

A life insurance policy would go a long way in ensuring that childcare and other household tasks are covered. So if you don’t have another form of inheritance for your loved ones, this is an ideal way of creating a financial cushion for your family in the case of your untimely death.

Final Expenses

After the demise of a breadwinner, a lot of surviving family members are left burdened with the financial task of the burial and possible hospital bills(if the deceased was ill before passing). This leaves them financially strained, and in some instances, they are forced to borrow or even sell family assets and property to pay for these costs.

If you have a final expense life insurance policy, then the death benefit is used to cover these expenses, lifting the responsibility from your grieving family members. Considering that funeral expenses can be up to and over $10,000 it is important to have a policy specifically for this purpose.

Business Protection

If you are an entrepreneur, partner, or owner of a business, then it is important to set up a life insurance policy to protect it. It can help in different ways, for instance, it can be used to fund a buy-sell agreement. This provides the capital needed to buy the interests of a deceased owner allowing a smooth succession.

It is also used for key person indemnification by protecting the business from losing a key person’s skills, expertise, and services. In other instances, business owners take out life insurance for the payment of loans. The policy is taken out against a business loan under a signed agreement known as a collateral assignment. As such, the business is protected from creditors as the proceeds are used to pay off the loan in the case of potential death.

Pension Replacement

Pension is one of the ways most people support their loved ones. On the downside, this stops coming in when you die, leaving your family without an income. Life insurance can be a valuable replacement as it can be used to cover the financial needs of your remaining spouse and children or other family members who rely on your income. 

Whole life is an ideal insurance policy because if you have a term life policy and happen to outlive it, then your loved ones will not receive the benefits.

Estate Planning

Property transfer can be chaotic considering the estate taxes that need to be paid and estate equalization, etc. If you want an orderly process, then life insurance is a great way of ensuring that taxes are minimized and your heirs are provided for how you would wish, even in your absence.

Without a plan in place, family members might be forced to sell properties at prices below the market value in order to quickly raise money. The death benefit amount can be used to partially or completely pay off the estate taxes, depending on the number of assets you have. This helps to prevent these taxes from piling up and even protects your loved ones from losing their inheritance. 

Charitable Contributions

If you have a built up a sizable net worth, you might want to contribute to charitable causes of your interest. Typically a permanent life insurance policy will be the policy choice. You select how much you want to pass on to the charity which is the death benefit of the policy. This can be an ideal solution because of the leverage that life insurance provides.

Types of Life Insurance Over 60

Once you establish your need for a life insurance policy, you ought to decide on the best option based on your needs. There are different permanent and term life insurance policies offered by different insurers. At 60 years and above, here is a quick rundown of life insurance options you can consider.

Term Life Insurance

Term life insurance is designed to provide coverage for a span of between 10 and 40 years depending on the insurance company and the age you are when you begin the policy. The older you are when you begin the policy the shorter the term lengths that are available.

When the agreed-upon time span lapses, the policy comes to an end, and the death benefit is paid to your loved ones. However, if you happen to outlive your policy then it is terminated and no benefit is paid out. 

When compared to other types of permanent life insurance, term life is cheaper because of the absence of a cash value component and because your policy is temporary as it is designed to last for a certain period of time. If your current policy expires, you can apply for a new one but it will have higher rates. You can convert an existing term life policy to a whole life or permanent policy if the term policy is still within the conversion period. 

Whole Life Insurance

Whole life insurance policies provide coverage for you as long as you live. In addition, apart from the cash value, the premiums paid are used as a cash value accumulation that grows tax-deferred. Also, you can use the cash value component to borrow against the life of the policy. The premium and death benefit amounts are fixed and the policy stays in force as long as it is paid for. 

A whole life insurance policy would be a great choice for you if you are looking for a reliable way of estate planning. The major disadvantage this type of policy has over term life is that it is more expensive.

Universal Life Insurance

Universal life insurance is similar to whole life in that it provides permanent protection for the policy owner. Also, a cash value component is accumulated from the premiums paid to the policy. The main reason why it might be a better option than whole life insurance is that it offers flexibility. Should your financial circumstance change in the future, you can adjust the premiums you pay. 

At 60 years, you are closer to your retirement, and when you finally do, this affects your income which could make it challenging to pay the current rates. If you reduce the premiums you pay, it equally affects the amount of death benefit and the cash value accumulation. This kind of flexibility helps to protect your policy and keep it in force even when you cannot afford the initial premium rates at the beginning of the policy.

Sample Life Insurance Quotes Over 60

Every life insurance provider uses different criteria in determining policy rates for applicants. Oftentimes, health status and age play a huge role, but other factors such as weight, career, family health history, as well as if you are a smoker or not will also be looked into. When it comes down to health, there are different health classes used. To that end, the following are the most commonly used health class ratings used when determining eligibility for a life insurance policy.

  • Standard- Anyone with average health will fall under this class, although an individual with slight health issues can also qualify. It is the base standard rate.
  • Standard plus- Individuals eligible for this health class are in very good health, but not perfect. Blood pressure and a few other minor health issues will not hinder you from qualifying. Has rates lower by about 12-22% than the standard rate.
  • Preferred- Applicants under this class are in excellent health, better than the standard plus class. Has rates lower by about 28-36% than the standard rate.
  • Preferred plus- This is the best health class for individuals with perfectly good health and with the lowest premium rates. These rates are lower by about 38-45% than the standard rate.
Standard($100,000)Standard Plus($100,000)Preferred($100,000)Preferred Plus($100,000)
60 years$92$88$67$55
65 years$163$159$113$101
70 years$310$251$229$205
Standard($300,000)Standard Plus($300,000)Preferred($300,000)Preferred Plus($300,000)
60 years$233$197$151$132
65 years$451$354$286$241
70 years$785$674$585$536
Standard($500,000)Standard Plus($500,000)Preferred($500,000)Preferred Plus($500,000)
60 years$370$319$236$206
65 years$736$579$452$387
70 years$1,285$1,075$946$863

Sample rates for 20-year term life insurance for non-smoker females over 60 based on their health classes.

Standard($100,000)Standard Plus($100,000)Preferred($100,000)Preferred Plus($100,000)
60 years$67$64$46$43
65 years$117$111$88$81
70 years$254$215$185$170
Standard($300,000)Standard Plus($300,000)Preferred($300,000)Preferred Plus($300,000)
60 years$147$137$108$96
65 years$289$252$224$203
70 years$662$568$494$439
Standard($500,000)Standard Plus($500,000)Preferred($500,000)Preferred Plus($500,000)
60 years$262$223$169$146
65 years$463$398$338$333
70 years$960$898$741$706

Sample lifetime coverage rates for a non-smoker preferred plus male over 60 years.

60 years$148$341$681
65 years$190$465$929
70 years$262$606$1,212

Sample lifetime coverage rates for a non-smoker preferred plus female over 60 years.

60 years$140$294$588
65 years$176$391$783
70 years$246$562$1,123

Run a Quote For Yourself

Having a quote estimate might help you make an informed decision on the best policy for you. You can now easily run a quote for yourself depending on the amount of coverage you want, the type of policy, and how long you will need coverage.

Work With Us

If you want to simplify the process of applying and qualifying for a life insurance policy, then it is best to work with a pro. A seasoned life insurance agent would be of great help, from providing different options and helping you to choose the best policy tailored to your needs. It will also save you time and money going through different insurers and trying to compare different life insurance options that you will be offered. Get in touch with us today and we can do all the shopping at no extra cost to you!