If you’re a senior over 60 and can’t decide whether to get whole life insurance or term life insurance, here is what you might want to put into consideration.
First and foremost, getting whole life insurance in your 60s may not be the best choice you’ll ever make. This is simply because you’re basically pre-paying your death benefit. Although the fact that you can borrow from the money that you’ve saved up makes it more attractive, you still will be subjected to interest rates, for your own money.
So instead of getting whole life insurance, you should always seek the term life insurance as it will be cheaper, allow more cash flow which you can put in a savings account. Sure, the death benefit your loved ones will be tax-free but savings account won’t, but you can always convert your term life insurance to whole life insurance at the end of your policy.
Simply put, the whole life insurance is not going to make a lot of sense and definitely will not bring a whole bunch for a senior who’s in their 60s. Instead, term life insurance will make more sense as you will pay about 5% to 10% of what you would normally pay for whole life insurance.
The Cost of Term Life Insurance for Seniors
Outside of the age, there are a few other things to put into consideration for calculating the cost of life insurance for seniors such as medical history, sex, and current health. Since almost no insurance companies offer 30-year terms, you can either get 10 or 20-year policies starting from as low as $80.
|60 – 70||$250,000|
Tip: If you have ongoing medical conditions that are not likely to fade away over time, we strongly recommend picking the 10-year life insurance and converting it to whole life insurance.