The following life insurance rates by age charts are for someone in their 60s in excellent health, with no other risk factors.
The life insurance quotes provided are from top rated life insurance companies rated by AM Best with an A- rating and higher.
- Term Life Insurance Rates in Your 60s
- Whole Life Insurance Rates in Your 60s
- Term Life vs Whole Life Insurance Quotes
- Why Buy Life Insurance in Your 60s
- Top 3 Reasons to Term Life Is Better
- Top 5 Reasons to Consider Whole Life
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In this article we wanted to take a moment and discuss a few situations where someone in their 60s might be better served by purchasing a whole life insurance policy rather than a term policy.
Now our intention here…
Is not to try and “sell” you on the idea of purchasing a whole life insurance policy or try to and convince you that there is something wrong with purchasing a term life insurance policy.
Our goal in this article is demonstrate how silly it is for some insurance brokerages to simply refuse to give their clients the opportunity to decide if a whole life insurance policy might be “right” for them.
And the best way…
We’ve found to show how a whole life insurance policy might be more beneficial to a client than a term life insurance policy would be is by offering a few concrete examples.
Before we dive right into a few of these “situations” where whole life is better than term, we wanted to first address some of the major concerns of the…
“Whole Life Insurance Critic Community”
Your insurance needs have changed.
As a general rule of thumb, what you’re generally going to find is that on average, a whole life insurance policy will usually cost about 5 to 10 times more than a traditional term life insurance policy.
In the mind of most life insurance agents, both term life insurance and whole life insurance offer the same thing, mainly a death benefit in the even that you die while the policy is active, it doesn’t make sense to pay 5 to 10 times more for whole life than it would for term…
The only problem is…
That with this argument there are two main issues that are being totally ignored.
First, this argument assumes that everyone will die during the “term” period that the individual purchases, and second, it assumes that there’s no additional benefits to owning whole life insurance vs term life insurance policy which is something that we will address specially later on in this article.
If you purchase a 20 year convertible term life insurance policy and die three days after that term insurance policy expires, we can assure you that your family might have a different opinion on the “value” of a term vs a whole life policy.
But that’s not all…
Because as you’ll soon find out, there are a lot of “technical” advantages one will have access to by owning a cash value whole life policy that simply won’t be available to folks who simply own a term policy.
Your insurance needs have changed (Part deux).
A second argument that many life insurance agents like to make is that as one ages, their insurance needs will likely lessen over time.
Chances are if someone in their 30s decides to purchase a life insurance policy, it may be because they just:
- Got married,
- Had a child,
- Purchased as home,
These are all quite common reasons why someone might want to purchase a life insurance policy in their 30s. They are also common reasons which one can naturally assume will diminish over time.
At 60 years old, one might hope that their children have become independent and moved out of the home, that home mortgage you started paying on 30 years ago will finally get paid off, and as one nears retirement age, dying early usually won’t have the same financial impact on your spouse as it would if you died in 40s or 50s.
In “theory,” we would be inclined to agree with this argument. However, there are certain situations where this might not be the case.
For example, it’s quite possible that you may have a special needs child who may not be able to care for themselves regardless of how old they get.
A growing trend that we are seeing nowadays is that grandparents are having to take on more of a primary “parenting role” of their grandchildren simply because their own children aren’t able to or willing to meet their responsibilities (yes, it is sad).
In cases like these…
The argument that a person’s insurance needs will likely decrease as one ages doesn’t really hold true. This is why we feel it’s never a really good idea to “assume” what kind of life insurance for a 60 year old is going to be the right one for any client.
Life insurance agent greed.
Because whole life insurance rates are higher, they tend to have larger commission payment for agents than term life insurance policies.
This has historically led some “unscrupulous” agents to encourage their clients to purchase whole life insurance policies instead of term, even when term policy might be the better option.
Like the saying goes…
“Don’t throw the baby out in the bath water”
One shouldn’t automatically assume that whole life isn’t right for them simply because dishonest agents have sold these policies to the wrong people in the past.
This is why you’ll want to be very careful in deciding “who” you decide to work with when buying life insurance at age 60 and why we here at I&E always like to be very “transparent” from the get go!
So now that we’ve discussed some of the main arguments against purchasing whole life insurance in your 60s, let’s now take a moment and discuss why some folks in their 60s may actually WANT to purchase a whole life policy.
Your Insurance Needs Have Changed.
Here at I&E, we’d probably estimate that about 30 to 40% of all our clients in their 60s end up contacting us because their existing term life insurance policy is about to expire and now they’re wondering what they should do.
These folks typically…
- Just learned that once their term is over-that’s it, they’re no longer insured, or
- They just learned what it would cost to keep their term policy in place for one more year and they’re “INSULTED” by the price that they’ve been quoted!
The good news…
It that for a lot of these folks, the idea of “needing” a $250,000 or $500,000 life insurance policy simply isn’t necessary any more, which is why it may make sense to “self-insure.”
In some cases, folks will want to transition from a large term insurance policy to a smaller whole life policy which then can use so that ultimately all of there final expenses or burial costs might be covered.
In either case…
Here is where we see that as one gets older, their insurance needs do change and as a result, owning a smaller whole life policy serves a valuable role in fulfilling a client’s needs.
Your Insurance Needs Have Changed (Part deux).
In our previous example, we describe a client in their 60s who calls us because their term life insurance is about to expire and fortunately for them, they don’t really have a need for the amount of coverage that it was offering.
Their “insurance needs” did decline over the years, and the term policy properly insured them for the amount of coverage that they needed over the time period that they were at the highest risk.
The problem is…
This is not always the case. You see for a lot of folks, when they decided to purchase their original 30 year term policy back in their 30s, that policy made a lot of sense for them at the time. Unfortunately, as things changed for them, the 30 year term policy became less and less ideal.
For some, there are situations where over time, one’s insurance needs don’t diminish. In some situations, they may actually increase!
Now, this could be for a variety of issues, but probably the most common two that we see here at I&E is when where either dealing with a client who has a special needs child who will never be able to support themselves financially or when a client is having to take on the primary parenting role of one of their grandchildren.
In cases like these…
Folks in their 60s will often want to know what whole life insurance options they may have so that upon their death, there will be a life insurance policy in place.
Just Bury Me Please.
Another increasing trend that we’re seeing is for folks to what to purchase a small final expense whole life insurance policy on either themselves or a family member, so that in the event of their death, the surviving family members won’t need to worry about how they’re going to pay for their burial or final expense.
In cases like these…
Clients are worried about covering the cost of a mortgage, financing a child’s education or replacing potential lost wages.
Rather, all they’re really concerned about is being sure that when the they pass, coverage will be in place.
What Do You Mean I Can’t Qualify?
Not being able to qualify for traditional life insurance is another reason why someone may choose to purchase a smaller whole life insurance policy, because often the life insurance underwriting requirements to qualify for either a simplified issue whole life insurance policy, or a guaranteed issue insurance policy, can be a lot simpler than it would be to qualify for fully underwritten life insurance policy.
In cases like these…
Individuals may have already been denied coverage by one or two insurance carriers already and are now just looking for any option that they can get.
The good news is…
There are a lot of smaller whole life policies out there, many of which we here at I&E do offer, so if you find yourself in this situation, you’ll definitely want to give us a call.
We’re not investing, we’re saving wisely.
The last reason why we wanted to talk about with regards to why some folks shopping for life insurance in their 60s might want to consider purchasing whole life is because these types of life insurance policies can be used for so much more than simply providing your loved one with a death benefit.
We’re not talking about using a whole life insurance policy as an “investment” because like many financial advisors will tell you, purchasing a whole life insurance policy as an investment isn’t a great idea.
What we’re talking about…
Is purchasing a whole life insurance policy as a “savings” vehicle can not only earn you more of a return than typical bank savings accounts, it can also provide one with:
- Tax free loans,
- Tax deferred guaranteed cash value growth,
- Improved cash flow and liquidity,
- Guaranteed death benefit
Benefits that simply aren’t available with term life insurance.
So now, we’re left with the burning question of…
“Will buying a whole life insurance policy be the “right” move for you?”
It might be, but it’s also quite possible a term insurance policy is simply the better choice.
We just won’t know until we understand exactly what you’re hoping to accomplish by purchasing your life insurance policy.
The only thing…
We know for sure is that we here at I&E aren’t going to make any “assumptions” about which type of life insurance might be right for you, and we’re going to do our very best to help you find and qualify for the best life insurance at age 60 for you, based on your unique needs and goals.
So, what are you waiting for? Give us a call today and see what we can do for you!