Don’t you just hate the fact that the longer you wait to buy life insurance, the more expensive it gets?
It is reasonable, yes, but disappointing nonetheless.
As a 67 years old man, should you avoid buying a life insurance policy altogether?
No, you should not.
Term life insurance is the best option for a 67 years old man. It is possible to get a 15 years term policy with a coverage of $100,000 for approximately only $100 per month.
Whole life insurance is also available widely but that is not a cheap option.
Why Buy Life Insurance as a 67 Years Old Man?
It’s for Your Family’s Needs, Not Yours
This is the primary reason why you have to buy life insurance, even at the ripe age of 67 years old. Although the life insurance account is named after you, it’s not for you. The beneficiaries will be your family.
The purpose of life insurance is not to assign a monetary value to your life. Rather, it’s to financially help your beneficiaries should something happen to you and can no longer provide for their financial needs.
Most of the time, it’s the possibility of death that drives us to purchase life insurance. This is why it may get harder for seniors to buy an affordable life insurance plan.
At age 67, just a few years away from 70, life insurance agencies, may deny you an insurance plan that you can afford. After all, the possibility of death is higher as we grow older.
Though it gets harder once you reach 67, that’s not a reason to not keep a good life insurance policy for your family.
You Want to Leave Monetary Inheritance
When you reach age 67, chances are your children are already grown up. They can take care of their financial needs. No one depends on you to take care of them. Why would you bother paying heavy monthly premiums if this is the case?
Wouldn’t it be nice if you can leave your family a fair amount of inheritance? Sure, your children or grandchildren don’t need the money to live comfortably. But the money can certainly help them live a better future.
Ease the Stress Your Survivors Will Have Should You Pass Away
Another reason why you should get a life insurance plan is to ease the stress your family will feel if you pass away. This is not to say that money takes your place in the family. It’s just that funeral arrangements can be expensive.
Help your family transition smoother by having an insurance plan in place that will not cripple their financial status.
The debt levels of senior adults in the US skyrocketed in the last two decades. That includes mortgage debt. As a 67-year-old man, chances are, you are still carrying debt. And you will continue to do so into your 70s.
This is not a comforting thought, but it is reality. Add to that the effects of the coronavirus lockdown, which affected global trade, you might not live the sweet life you thought you would by age 70.
What you need is to utilize your resources and get a good insurance plan that will protect your family from the inevitable pain of an economic crisis. A good life insurance plan will protect your family from the burden of mortgage debt.
Life Expectancy is Changing
Did you know that the life expectancy of people is changing?
According to the life expectancy calculator of the Social Security Administration (SSA), a 67-year-old man today has a life expectancy of around 17 more years. You can still reach over 85 years old.
This calculator doesn’t factor in your health condition, family history, stress level, or sleeping habits.
This calculator gives you an average value. But that doesn’t change the fact that, in general, life expectancy has increased dramatically since one generation ago.
What Does This Mean In Terms Of Life Insurance?
For one, you might live longer than you would expect. Who would take care of you when you can’t take care of yourself? When all of your family have a family of their own?
There are life insurance companies that allow you to live comfortably off of dividends. Depending on your agreement with the insurance company, you can include the dividend payment into your annual budget.
A good life insurance policy with the right insurance company can be the difference between living comfortably for the rest of your life or depending on your family financially.
Life Insurance Protects You from Medical Debt
We’ve already established that people are now living longer than they used to in the past. But part of old age is a few medical issues here and there.
What if you experience medical problems in the future? What if you need home care? How would you pay for those?
Did you know that medical expenses cause about 62% of personal bankruptcies in the US? You may have a retirement pension or some extra savings, but an unforeseen health problem can still financially cripple you.
Medical insurance isn’t much help in this matter. Of that 62% who filed bankruptcy due to medical expenses, 78% are medically insured, according to a survey by the American Journal of Medicine.
Looking at all the data, it’s reasonable to see that there is a benefit from keeping a reliable life insurance policy. One serious illness or the need for long-term care can spark a series of a major collapse in your finances.
Pension Decrease and Economic Recession
Another reason why you need a life insurance plan is shrinking pensions. With the move from the traditional pensions towards the 401(k) program, chances are your pension is a lot less than you might have anticipated.
As a 67-year-old, you have reached retirement age. And if your retirement plan is 401(k), then you will see your pension shrink before your eyes due to possible economic recession.
A 401(k) does not guarantee a monthly check during retirement. So, there’s a possibility that you’ll need extra financial cushion should situations become dire.
Economists are predicting a US recession by the end of 2021. Are you prepared for it? The power to borrow money from the cash value of the policy can act as a net for you should unforeseen financial difficulties arise.
Borrowing cash value, and perhaps a dividend payment can go a long way in keeping you financially safe in these financially troubling times.
How to Choose a Life Insurance Policy For 67 Years Old Man
On deciding to get the best life insurance as a 67-year-old man, it is important to make sure you know what policies best suit you.
Let’s find out the differences.
Term Policy VS Permanent Policy
Term policy covers a specific period of time. You and the insurance provider agree on the time the policy will last before signing.
The permanent policy lasts the duration of your lifetime. So, the longer you live, the more you pay in premium.
If you think you will only need life insurance until all your debts are paid off, then a term policy is probably your best option.
If you die ten years from now, would your dependents still need payout? Then your policy should be a ten-year term policy.
However, if you want your family to receive a payout, no matter how much time passes between now and your death, a permanent policy will be better.
But at the end of the day, the only policy that counts is the one in fore when you pass away.
Other Types of Senior Life Insurance
Aside from the term and permanent policies, there are also other types of life insurance policies available to seniors.
- Guaranteed Universal: As long as you pay your premiums, you’ll get coverage. Premiums also do not change. However, this policy may not have a cash value.
- Universal Life Insurance: A permanent policy that has a cash value that you can use to pay your premiums. You can adjust your premiums and death benefit at any time
- Final Expense Insurance: Basically, whole life insurance, except that the face value, or the death benefit, is just enough to cover final expenses (e.g. burial or funeral). You may not be interested in it. This is an excellent choice for seniors over 90.
How Much Coverage Do You Need?
The next question you want to answer is how much coverage do you need. Again, this is entirely up to you. If you want to leave a big amount of money for your family or spouse, then a bigger policy is best.
But if you only want to cover your final expenses, a smaller policy will fit your need. Just keep in mind that the premium you pay monthly is relative to the coverage you want.
The bigger the policy, the higher the premium.
Risk Class and Premium Rates
When buying life insurance, you’re often categorized into your risk class to better calculate the corresponding premium.
The risk class determines your life expectancy. The shorter your life expectancy is, the higher the premiums you’ll have to pay.
In some cases, insurance companies even deny insurance to people with a very short life expectancy.
The factors that come into play include:
- Health, including weight or a pre-existing condition
- Family history
- Smoking status
- Family history
- Interest in risky activities like sky-diving
If you are assigned to the lowest risk class, you’ll pay the lowest premiums.
However, in a permanent life insurance policy, as you age and your life expectancy shortens, your premiums will rise.
Aging doesn’t affect much the premiums in a term life policy.
Sample Rates for 67 Years Old Man & Woman
67 Years Old Man (Good Health):
67 Years Old Man (Bad Health):
67 Years Old Woman (Good Health):
67 Years Old Woman (Bad Health):
Best Life Insurance Companies for 67 Year Old Man
Now that we’ve seen how to get the most suitable life insurance for you.
Let’s take a look at the best life insurance companies for a 67-year-old man such as yourself.
Banner Life Insurance
Banner Life Insurance is owned by Legal and General (LG) America. Of all the life insurance providers out there, this seems to have the best option for high-risk individuals.
For one, Banner Life Insurance approves a lot of medical conditions and risks which a lot of other insurance providers decline.
This means that if you have a severe medical condition, this insurance company might still cover you.
Aside from that, this insurance provider prices their substandard insurance rates lower for high-risk individuals.
Since high-risk individuals may not get the standard insurance due to their condition, they may have to spend more on premiums to get the substandard insurance.
But, Banner Life’s substandard insurance rates are lower than that of other insurance providers.
Mutual of Omaha
Mutual of Omaha has a really good whole life insurance policy. The premiums are not the lowest, but nor insanely expensive either.
There’s no medical examination required to begin coverage. Whole life policies are available to individuals until they are 85 and coverage options range from $2,000 to $25,000.
Why is it the best whole life insurance provider? It’s the best because it’s the friendliest to seniors. And, as someone who’s venturing your golden years, you want a reliable insurance provider.
Mutual of Omaha’s stellar customer service, benefits, living promises, and reasonable pricing makes it the best option for you.
Pacific Life offers really good prices. Their internal policy costs are lower and a lot more stable than other insurers. The company also has a good history of maintaining these costs, and at times, even reducing them.
The company also offers greater access to account values. Plus, the cash values they offer are really desirable. Overall, this company has a reputation for being reliable.
Read Also: How to Get Life Insurance Over 65?
Apply for a Life Insurance NOW!
What are you waiting for? Apply for life insurance today! You don’t know what tomorrow brings. But, you know that life insurance will help you protect your family from financial harm.
With a little life insurance shopping and getting the help of an independent life insurance agency, you can ensure that your family is safe from financial ruin.