Picking beneficial life insurance can be challenging as the industry is on a constant change. Whether you’re looking for a whole life or term life insurance, the benefits of both are going to vary depending on what you’re looking for.
While the term life insurance provides coverage for a specific amount of time, usually 10 to 30 years, whole life insurance lasts for life. In both cases, your beneficiaries will receive a payout from the life insurance policy. If the pricing is the one that determines which one is going to be the best one for you, term life insurance is way cheaper than whole life insurance.
This is because the whole life insurance is meant to build up cash value. However, this isn’t really about being an investment as you can’t really touch that money during your policy which means until you die. Sure, some insurance companies may allow you to take any amount but it will be considered as a loan. So you will pay interest for your own money. That’s why whole life insurance isn’t all that popular anymore.
One of the biggest critics of whole life is Dave Ramsey as he recommends building up wealth or putting that money into a savings account rather than purchasing a life insurance policy.
Which is best for a senior over 60?
As the life expectancy of Americans is rapidly increasing, as someone in their 60s, whole life insurance might not be worth it as you will pay for a very long time, not to mention the drawbacks of the policies.
So the best option is to purchase term life insurance. Most of the insurance companies may not offer policies for 30 years but if your current health is looking beyond good, it isn’t impossible. From the table below, you can see how much term life insurance costs for seniors over 60.
Term Life Insurance
|Age||$100,000 Coverage||$250,000 Coverage||$500,000 Coverage||$1 million coverage|
|60 – 63||$50||$90||$170||$275|
|64 – 66||$70||$120||$230||$470|
|68 – 69||$90||$185||$370||$710|
Whole Life Insurance
|Age||$250,000 Coverage||$500,000 Coverage||$1 million coverage|
|60 – 63||$8,330||$15,550||$31,830|
|64 – 66||$8,910||$16,260||$32,340|
|68 – 69||$9,240||$19,130||$36,120|
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