Whether you’re looking for life insurance to leave something behind or save up something extra aside for the education of your grandchildren, it can be worth it if you get the right policy.
On the surface, there is two main types of life insurances. The first and the most popular one is term life insurance which as it sounds for a limited period of time. It usually lasts for 10, 20, or 30 years but seniors over 60 may have a hard time obtaining term life insurance for 30-years.
Not only the age plays a role but the medical history and overall current health can have a huge impact on how much you pay for your life insurance whether it be a term or whole life insurance. In addition to age and health, female seniors are likely to pay less for their life insurance. This is simply because women have a longer life expectancy than men in the United States.
Term or Whole Life Insurance for Seniors Over 60?
First off, we need to define what over 60 means. Sure, someone who’s 72 years old is also over 60 but in terms of life insurance, it mostly means that the senior is between the ages of 60 and 70. So with that out of the way, we can now determine which one is likely to be the best for you.
If you have current medical problems, the insurers may be shy away from offering you a plan but since 60 isn’t all that old, we strongly recommend going for an available term life insurance as you will have the option to convert to whole life insurance at the end of your policy.
Average Cost of Life Insurance 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|
While whole life insurance is perfect for putting money aside, the drawback arrives when you take from the money that you’ve saved up yourself. Sure, marketing whole life insurances as you will be able to borrow money sounds good and all, you are going to be subjected to interest rates and you will eventually have to put back the amount you took.
This is because unlike term life insurance, it doesn’t get reduced from the total value of your policy. So in the end, you will pay interest for your own money which doesn’t really make sense. However, we suggest converting your policy to whole life at the end of your policy if you’re going to be over 75 at that time.