For seniors, getting insurance might be the last thing in mind. After all, most would think that it is not a good age to get life insurance.
Many would say that you should get an insurance policy while you are still young and healthy.
There are several reasons why you should get the best life insurance for seniors over 60.
In reality, age is just a number. There are still different ways to get a good deal even if you are over the age of 60.
Should you get insurance?
The answer is definitely, yes!
You just really have to compare your choices and find a great deal.
Note: This article is for seniors aged between 60 to 64. If you are 65 or over, check this article.
Reasons to Get a Life Insurance for Seniors Over 60
One of the main reasons why you should have life insurance is to offset retirement income loss. Many people experience problems when they retire.
What happens to your loved ones if you don’t have any life insurance?
With life insurance, you can provide support for your disabled spouse or child. In some ways, it is a big help and can eliminate your stress and worries.
When you have personal debts like personal loans and even credit cards, you can pay them even after your death with a good life insurance policy. Some seniors have big estates and they can utilize life insurance in so many ways.
For instance, they can have immediate liquidity allowing their heirs to pay taxes. It is also used for estate planning as it gives them flexibility and it also balanced out if there is uneven wealth distribution.
For seniors who have businesses, life insurance can be used to offset if there is a loss in a key person.
In some cases, there are seniors who just want small policies that can give cover for final expenses.
You wouldn’t want your loved ones to shoulder the cost as life insurance can be used to pay for all of the funeral and other related costs. It can also cover all of the other expenses and that includes debts.
With all the benefits that you can get, there is no reason why you should not. It is just a matter of finding the policy.
Different Types of Life Insurance Over 60
Term Life Insurance
Contrary to what some may think, there are several choices available for those who want to get this type of insurance policy. It just depends on what you need, your current health condition, and the budget you are willing to spend.
But just before you start the search and delve into the details, you need to know basic info first.
Term life insurance is the most basic insurance policy which gives coverage for a certain period of time. If the person dies during the specified term, the beneficiary will receive the benefits.
Depending on the insurance provider, you may either undergo a medical exam or not.
Permanent Life Insurance
If you want to have bigger coverage, it is strongly recommended that you opt for permanent life insurance. This is strongly recommended if you have a big income and you want to have a tax shelter as they max out the IRA.
People who have a huge estate that requires liquidity also prefer to have permanent life insurance. Compared to the term life insurance, you will need a medical exam for this insurance policy. It is one of the requirements.
You can also adjust the premium if you choose modified whole life insurance.
No Medical Exam Life Insurance Over 60
Some may ask if it is the best idea to have insurance with no medical exam. It will really depend on your current condition and needs.
That is why it is important that you talk to an insurance professional first so you know how the different insurance policies differ and you can get good advice as to which one is good to get.
Life insurance that does not require a medical exam is recommended for those who have moderate or serious health problems.
If you don’t like the hassle of having to take a medical exam, this is the type of insurance policy to get. Companies will usually ask 5 or more health questions.
Afterward, you can expect your insurance policy to be approved for 2 days or less.
Most of the insurance policies allow you to convert the term of the policy to an amount of life insurance without having to undergo a medical exam.
Final Expense Life Insurance
Final expense life insurance or burial insurance is the one to get if you have major health issues.
People with life-threatening health problems usually get guaranteed issue life insurance. This policy is suitable for those who only need small coverage.
If you are healthy, it is better to opt for another type of insurance. Insurance experts would suggest that you consider a term policy especially since the final expense policy is quite costly.
Tips When Getting a Life Insurance for People Over 60
Now that you have at least some knowledge regarding the different types of insurance policies.
The next step is for you to start searching for insurance companies that offer the best deals. There are so many options available.
Take the time to compare your choices. Know more about the insurance company so you can be sure that it is reliable and not a scam.
Weigh and compare your choices. In as much as you want to reduce costs, you want to get good insurance coverage.