Getting Term Life Insurance When You’re Over 60

Last updated: March 7th, 2018

life insurance over 60Many people have life insurance policies in place by the time they reach middle age, seeing as most have their first child by this point, get married, and/or get mortgages and other things that would need to be taken care of if anything should happen to them. After all, life insurance is not really for the individual policyholder when you get down to it, but rather for their loved ones who will survive them when they die.

There are a lot of people that are getting close to retirement, or they are already retired, that assumes that they don’t need life insurance. But what happens if you reach age 60 and are still in need of a life insurance policy? What if you are older? Some may be under the false impression that it is too late to get coverage at this point, but the truth is that you are still eligible in many cases.

Term Life Insurance at Different Ages

While you can typically get a term life insurance policy at age 60 and beyond (usually up to age 80), your options narrow as you get older. Let’s take a look:

  • Ages 60 through 65— Eligible for 10, 15, 20, and 25-year term periods.

  • Ages 66 through 70— Eligible for 10, 15 and 20-year term periods.

  • Ages 71 through 79— Eligible for 10-year term periods.

  • Age 80— Eligible for 10-year term period.

Now, there are exceptions to these guidelines. For example, Transamerica offers 15-year term options to people up to age 78. You should also know that longer-term options tend to be more costly than the shorter ones, so even if a longer term period is available to you it may not be the best financial choice.

The Best Companies for Term Life Insurance Over 60

Obviously, some companies are better than others when it comes to working with people of your age. We work with 30 of the top companies and have years of experience in the life insurance industry. The best companies often come down to which ones offer the best rates for the needs of a specific individual. The following example can help clear up how that works.

Let’s say that Beverly is a 60-year-old woman applying for a $250,000 policy for a term of 15 years. She is in great health and qualifies for Preferred Plus rates. Here are the rates she is likely to be offered from some of the best companies:

Banner Life: $54 a month

SBLI: $54 a month

Protective Life: $57 a month

Genworth Financial: $58 a month

North American Company: $58 a month

Prudential: $63 a month

Transamerica: $65 a month

Fidelity Life: $74 a month

All of the companies you see here are highly rated, but the right one for Beverly is the one that will give here the best rates. Banner Life tends to be the most affordable plan for older applicants, but every applicant is different and each person is going to get different rates depending on their health and pre-existing conditions.

We can gather all of the lowest rates and bring them directly to you. Our independent brokers will ensure that you have the most affordable insurance policy without having to spend days looking for it.

The ‘No Medical Exam’ Option

You probably already know that most life insurance companies require a medical exam as part of your application. However, this often makes the process last longer, which doesn’t help if you need an insurance policy right away. Fortunately, there are a few different options available to you if you are 60 or over and would like to get an insurance policy without getting a medical exam. Here are some companies that offer such options:

American National Life Insurance

First up is American National Life Insurance, better known as “ANICO”. Applicants for life insurance up to age 65 can apply with no medical examination for policies between $50,000 and $250,000. ANICO may choose to order your medical records instead of having an exam done, though they do not do so in every case.

Fidelity Life Insurance

Like ANICO, this insurance provider also makes senior no medical exam life insurance available to those over 60, though only until age 65. Also like ANICO, their coverage options for no medical exam life insurance go up to $250,000, though they start at $25,000. With Fidelity Life, you can also get a decision on your application in just 24 hours, whereas others can take anywhere between a week and a month.

Transamerica Life Insurance

Transamerica is different in that it provides no medical exam life insurance up to age 70, though the coverage amount is limited. People who are age 60 can apply for as much as $99,999 of no medical exam life insurance coverage, while those who are older can get anywhere between $25,000 and $50,000. You should know that Transamerica will order your medical records as part of your application in lieu of a full exam.

How Much Life Insurance Do You need?

As an older applicant, you’re in a unique stage of life and that can make the common advice on purchasing a life insurance policy not useful for your situation. As seniors get close to retirement, they may no longer have a mortgage or anyone that relies on their income. If that’s the case, then you can consider getting a much smaller life insurance plan.

To make sure you have the right amount of coverage you should consider:

  • Debt – If you have any debt that your spouse or family could not easily handle without your income then your policy needs to handle it for them.
  • Final Expenses – You can either include this in your policy or pre-pay for your funeral expenses.  Either way you will want to make sure that have everything planned out so that your family is not left vulnerable to someone preying on their emotions and charging more than needed.
  • Income Replacement – If you are not yet retired and your loved one rely on your income, you should have enough coverage to make sure they are taken care of.

Burial Insurance Plans

Another option for life insurance is to buy a burial insurance policy. These plans are also known as final expense plans, and they are designed to cover your burial and funeral related expenses. These policies are much smaller, most companies only offer around $25,000 worth of coverage. For older applicants, this might be all that they need.

One of the advantages of these plans is that there is no medical exam or health questions. That means that anyone can buy one of these policies, regardless of health or pre-existing conditions. If you’re in poor health, this might be the best choice for you.

Another benefit of these policies is that you can be approved for coverage much quicker than you can with traditional plans. In fact, with these policies you can get approved for one of these policies in a matter of minutes.

If you don’t have any major bills or expenses, then a burial insurance plan can be a great option for you, but if you still have a mortgage, then you will need to apply for a larger plan with more coverage.

What’s Next?

You can start comparing rates today by filling in the quote tool on our page, but if you would like more details and/or would like to get started on an application, feel free to contact us.

You can give us a call at 888-552-6159. We look forward to getting to know you and helping you get the best term life insurance available!

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Doug Mitchell

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