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Guide to Life Insurance for Seniors Over 60

Life insurance is a useful tool for helping your loved ones pay your final expenses. Although many people buy a policy in their younger years, there are many senior life insurance options for people over 60. Comparing different plans is a great way to find affordable life insurance for seniors.

Cost of Life Insurance for Seniors Over 60

The price of life insurance for seniors over 60 varies based on these factors:

  • Policy type
  • Age
  • Gender
  • Health

In general, these are the average costs of senior life insurance options.

Average Annual Insurance Rates for Men

Age Whole: $10,000 – $1,000,000 Benefit Term: $250,000 – $1,000,000 Universal: $250,000 – $1,000,000 Benefit Guaranteed Universal: $50,000 – $250,000 Benefit Final Expense: $5,000 Benefit Final Expense: $10,000 Benefit
60 $516 – $35,807 $840 – $4,651 $7,524 – $29,856 $1,416 – $4,596 $336 $786
65 $672 and up $1,316 and up Talk to your insurance provider for rates. $1,908 – $6,240 $426 $894

Estimated * rates do not reflect the rates of any particular life insurance company.

Average Annual Insurance Rates for Women*

Age Whole: $10,000 – $1,000,000 Benefit Term: $250,000 – $1,000,000 Universal: $250,000 – $1,000,000 Benefit Guaranteed Universal: $50,000 – $250,000 Benefit Final Expense: $5,000 Benefit Final Expense: $10,000 Benefit
60 $396 – $29,546 $676 – $3,198 $6,552 – $25,944 $105 – $324 $270 $660
65 $492 and up $1,316 and up Talk to your insurance provider for rates. $140 – $429 $330 $708

* Estimated rates do not reflect the rates of any particular life insurance company.

Final Expense Life Insurance for Seniors Over 60

Also called burial or funeral insurance, this is a type of permanent insurance that’s usually used along with traditional whole and term life policies to pay funeral costs. You only have to answer a few health questions on the application, and you don’t have to take a health test to get it. The rates are much lower than other insurance plans, but the payouts are also smaller, usually between $5,000 and $15,000.

Since rates start as low as $15 per month, burial or funeral insurance for seniors is usually the most affordable life insurance for people over 50.

Average Monthly Final Expense Life Insurance Rates for Men*

$5,000 Death Benefit

Age Determined ‘In Good Health’ by Insurer No Health Questions Asked
60 $23 $29
65 $29 $35

* Estimated rates do not reflect the rates of any particular life insurance company.

$10,000 Death Benefit

Age Determined ‘In Good Health’ by Insurer No Health Questions Asked
60 $43 $57
65 $56 $68

* Estimated rates do not reflect the rates of any particular life insurance company.

Average Monthly Final Expense Life Insurance Rates for Women*

$5,000 Death Benefit

Age Determined ‘In Good Health’ by Insurer No Health Questions Asked
60 $18 $24
65 $22 $28

* Estimated rates do not reflect the rates of any particular life insurance company.

$10,000 Death Benefit

Age Determined ‘In Good Health’ by Insurer No Health Questions Asked
60 $33 $45
65 $41 $55

* Estimated rates do not reflect the rates of any particular life insurance company.

Whole vs. Term Life Insurance for Seniors Over 60

Whole and term life insurance are the most common plans for people of all ages. Even if you’re in your 60s, one of these options may be right for you.

Whole Life Insurance

Whole life insurance is sometimes called permanent life insurance, because it doesn’t expire. It stays in effect as long as you make your payments. The cost of the policy is more expensive the older you are, so locking in an affordable rate is key. These plans usually require a health exam, but certain types of whole life insurance (like final expense insurance) can be issued without a medical exam. A final expense whole life plan can be issued based on answers to health questions on the application.

Since whole life insurance policies build cash value and have a higher monthly cost than other plans, they’re not right for every senior. If money is tight, the payments may not fit into your monthly budget, and if you’re in poor health, you may not live long enough to benefit from the accrued value. But if you’re in your early 60s and in good health, there are advantages of whole life insurance for seniors. For example, some policies allow you to borrow money from them, but the loan has to be paid back while the owner is still alive. If it’s not, the amount will be taken out of the payout after the owner passes away.

Although it’s more expensive than other types of policies, there are affordable whole life insurance plans for those 60 and older.

Average Annual Whole Life Insurance Rates for Men*

Age Policy Amount Average Rate
60 $250,000 $9,111
60 $500,000 $18,164
60 $1,000,000 $35,807

* Estimated rates do not reflect the rates of any particular life insurance company.

 

Average Annual Whole Life Insurance Rates for Women*

Age Policy Amount Average Rate
60 $250,000 $7,530
60 $500,000 $15,100
60 $1,000,000 $29,546

* Estimated rates do not reflect the rates of any particular life insurance company.

Term Life Insurance

Term life insurance rates are fixed for the full length of your policy. They usually require a health test and are sold in terms between 10 and 30 years, but the longest policy you can buy when you’re over 60 is 20 years.

Knowing exactly what you’ll pay each month in fees is helpful to seniors on a budget, especially those on a fixed income. The downside of term life insurance for seniors is that if you outlive your policy, you won’t receive the death benefit. You’ll need to buy a new plan, which gets more expensive as you age.

Even if you buy a large policy, the price of term life insurance fits within many seniors’ budgets.

Average Annual Term Life Insurance Rates for Men*

Age Policy Amount Average Rate for 20-Year Term
60 $250,000 $1,273
60 $500,000 $2,396
60 $1,000,000 $4,651

* Estimated rates do not reflect the rates of any particular life insurance company.

Average Annual Term Life Insurance Rates for Women*

Age

Policy Amount Average Rate for 20-Year Term
60 $250,000 $901
60 $500,000 $1,667
60 $1,000,000

$3,198

* Estimated rates do not reflect the rates of any particular life insurance company.

Convertible Term Life Insurance

Convertible term life insurance has a period when it can be changed to permanent (whole life) policies without a medical exam. Some companies offer partial term conversions, where you leave part of your original policy in place. You often don’t have to pay a fee to use either of these options.

When you convert a term life policy, the cost of your monthly payments will rise over time just as they would with a standard whole life plan. However, they’ll be cheaper than if you bought a new whole life policy in your 60s.

Seniors who own one of these policies should find out if they can update it to better meet their needs in their golden years. This is a good option for many older adults, since it gives you permanent coverage without having to take a health test.

Universal Life Insurance for Seniors Over 60

Universal life (UL) insurance is a blend of term and whole life insurance. It’s a permanent policy with a guaranteed death benefit, but its monthly payments are lower than standard whole life plans. It usually calls for a health test.

If your budget changes or you decide you want a smaller policy, you have the option of updating your plan to a lower amount, which is cheaper than getting a new policy. Some companies also give refunds for some or all of your payments after you’ve had the policy for a certain amount of time, usually 20 years.

Seniors who want a permanent plan can purchase universal life insurance at a lower rate than whole life policies.

Average Annual Universal Life Insurance Rates for Men*

Age Policy Amount Average Rate
60 $250,000 $7,524
60 $500,000 $14,900
60 $1,000,000 $29,856

* Estimated rates do not reflect the rates of any particular life insurance company.

Average Annual Universal Life Insurance Rates for Women*

Age Policy Amount Average Rate
60 $250,000 $6,552
60 $500,000 $13,032
60 $1,000,000 $25,944

* Estimated rates do not reflect the rates of any particular life insurance company.

Guaranteed Universal Life Insurance (GUL)

This type of UL doesn’t require a medical test or health questions, and it has guaranteed acceptance. These plans are available to seniors of all ages no matter their health. While the payments are low, your policy may be canceled if you miss even one, so it’s important to make sure you always pay them on time.

Average Annual Guaranteed Universal Life Insurance Rates for Men*

Age Policy Amount Average Rate
60 $50,000 $1,416
60 $100,000 $2,004
60 $250,000 $4,596
65 $50,000 $1,908
65 $100,000 $2,628
65 $250,000 $6,240

* Estimated rates do not reflect the rates of any particular life insurance company.

Average Annual Guaranteed Universal Life Insurance Rates for Women*

Age Policy Amount Average Rate
60 $50,000 $1,260
60 $100,000 $1,704
60 $250,000 $3,888
65 $50,000 $1,680
65 $100,000 $2,256
65 $250,000 $5,148

* Estimated rates do not reflect the rates of any particular life insurance company.

FAQs

Can I get life insurance if I’m over 60?

Yes, you can get life insurance if you’re over 60. Finding an affordable policy will be key, so make sure you explore all of your options.

What life insurance policies can I buy if I’m over 60?

There are many life insurance options for adults over 60. The most common are:

  • Whole
  • Term
  • Universal
  • Guaranteed universal
  • Final expense

Do I need life insurance if I’m over 60?

Life insurance is a safety net for people of all ages. It helps ensure their final expenses will be paid after they pass away so their loved ones won’t have to cover them out of pocket. These costs may include:

  • Funeral expenses
  • Medical bills
  • Long-term care bills
  • Mortgages
  • Auto loans
  • Credit card debt
  • Living costs for surviving dependents

Buying a plan to pay for these debts will ease your loved ones’ financial burden.

Do I need to take a health exam to get life insurance if I’m over 60?

You usually have to take a medical exam to qualify for whole, term, and universal plans. Guaranteed universal and final expense life insurance don’t use health tests. For these plans, coverage is issued based on answers to health questions on the application.

How much life insurance do I need if I’m over 60?

The size of the policy you need depends on how much debt you’ll leave behind after you pass away. Keep these factors in mind when deciding what size policy to buy:

  • The value of your assets
  • The amount of cash you have in your checking, savings, and other accounts
  • The number of dependents you have
  • Outstanding debts you’ll leave behind, such as mortgage and auto loans, medical bills, and funeral costs
  • Cash gifts you want to leave to loved ones or charitable causes
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