Do You Need Life Insurance in Your 60s?

Many individuals in their 60s will not need life insurance. They might have paid off their mortgage, retired, seen their children become financially independent or built up sufficient assets to reduce the necessity for life insurance. However, there are situations where purchasing or keeping a life insurance policy after age 60 can still be a wise decision.

Keep in mind that premiums rise significantly with age and health conditions, but comparing prices can help you find affordable life insurance quotes for seniors over 60.

Life insurance in your 60s can serve several purposes:

• Dependents: If people still rely on your income, such as a younger spouse or dependent children, maintaining life insurance at 60 or over ensures their financial protection if you pass away.
• Funeral Expenses: Life insurance can provide the funds to cover burial costs and final medical bills, preventing these expenses from burdening your family.
• Legacy or Gift: If you want to leave a financial legacy or gift to your children, grandchildren or a charitable organization, a life insurance policy can facilitate this.
• Estate Planning: Life insurance can cover estate taxes, avoiding the need to liquidate other assets.
• Business Planning: For those who own a business, life insurance after 60 can be integral for business succession planning, covering business loans or funding a buy-sell agreement.
• Debts: Life insurance after retirement can be used to pay off remaining debts, such as mortgages, auto loans and credit card debt, so they don't fall on your loved ones.

It's helpful to assess the cost of life insurance for people over 60 against these needs and to consider various policy options. Securing life insurance for someone over 60 is more than just coverage; it's about financial assurance for you and your loved ones.

On the other hand, several factors may indicate you don't require life insurance in your 60s:

• Financially Independent Children: If your children have moved out and are self-sufficient, life insurance for parents over 60 may not be necessary.
• Sufficient Retirement Savings: If you've accumulated sufficient savings or assets to cover your spouse's living expenses, final expenses and any legacies you wish to leave, you may not need life insurance after 60.
• Limited Debt: If you only have small debts or are completely debt-free, the need for life insurance after 60 significantly reduces.
• Existing Coverage: If you have existing life insurance coverage that meets all your needs, buying additional coverage may not be cost-effective.
• Post-Retirement Income Streams: If you have post-retirement income streams, like a pension or annuity, they may provide enough financial security without the need for life insurance after retirement.

Consider your financial situation and any outstanding needs you foresee to determine if purchasing a life insurance policy after 60 makes sense.

Evaluating the pros and cons of purchasing life insurance in your 60s can be a critical step toward making a well-informed decision that aligns with your needs and financial goals.

Life insurance premiums increase with age and are influenced by the policyholder's health status and lifestyle choices. For a healthy, nonsmoking 60-year-old, a 10-year term life policy with a coverage amount of $250,000 could cost approximately $76 per month. A 20-year term life insurance with the same coverage amount costs about $150. For smokers or individuals with health issues, these costs can be significantly higher.

The types of policies generally available for individuals in their 60s include:

• Term Life Insurance: Provides coverage for a specific term (e.g., 10 or 20 years). If you pass away during the term, the death benefit is paid to your beneficiaries. Explore the best term life policies.
• Whole Life Insurance: Offers coverage for a lifetime and has a cash value component that grows over time. Find the best whole life policies.
• Guaranteed Acceptance Life Insurance: This type of whole life insurance doesn't require a medical exam and has guaranteed approval but comes with higher premiums.
• Final Expense Insurance: Specifically designed to cover funeral and other final expenses. Final expense life insurance typically has easier approval and lower coverage amounts.

For more information on available policies, see our ranking of the best life insurance for seniors or our guide to the best life insurance for those over 60.

Life insurance rates for individuals in their 60s can vary significantly among providers. It's helpful to compare quotes to find a plan that fits your budget and coverage needs.

When evaluating 10-year term life insurance for 60-year-olds, consider that policy costs differ based on gender, coverage amounts and companies. The table below shows rates for an average healthy, nonsmoking male policyholder.

For 60-year-old women, life insurance policy costs for a 10-year term also vary with different coverage levels and companies. The following table provides a detailed view of rates for healthy, nonsmoking female policyholders.

The amount of life insurance coverage someone in their 60s needs will vary. Here are a few factors to consider:

1. Outstanding Debts: If you have any outstanding debts, such as a mortgage or personal loans, your life insurance should ideally cover these to prevent burdening your loved ones.
2. Income Replacement: If you're still working, consider your income and how many years you plan to continue working. Your life insurance coverage should replace your income for those years, especially if your spouse or dependents rely on it.
3. Final Expenses: The average cost of funeral and other final expenses can range between $7,000 and $12,000. To avoid burdening your loved ones, you may want a policy that covers these costs.
4. Estate Taxes: If your estate is large enough to incur estate taxes, life insurance can be used to cover these costs.
5. Legacy/Inheritance Goals: If you want to leave financial gifts to your children, grandchildren or a charitable cause, calculate this into your coverage amount.

If you need help determining how much life insurance coverage to purchase, consider seeking professional advice from a financial advisor or insurance professional.

If you currently have a term life policy, many life insurance companies allow you to extend it at the end of the term through a feature called "term conversion." This enables policyholders to convert their term life policy to a permanent policy (like whole life or universal life) without having to go through the underwriting process again.

However, it's important to note that this feature may not be available with all term policies or only for a specific period within the term. Additionally, while you won't have to go through medical underwriting again, the premiums for the new permanent policy will be based on your age at the time of conversion, which means they will be significantly higher than your term life premiums.

Before making changes, consider obtaining a life insurance quote to understand the premiums for a converted policy, keeping in mind the whole life insurance age limit. This step ensures the life insurance policy aligns with your long-term financial goals post-retirement.

Navigating financial security after 60 often involves making informed decisions about combining life insurance and long-term care options. You have two primary approaches to consider: purchasing a life insurance policy with a long-term care rider or acquiring separate policies for life insurance and long-term care.

Opting for life insurance with a long-term care rider integrates long-term care benefits within a life insurance policy, allowing you to access part of the death benefit to cover long-term care costs such as in-home care or assisted living. This approach ensures that your policy adapts to changing health care needs without requiring multiple premiums.

Alternatively, purchasing separate policies provides dedicated coverage tailored to specific needs. Long-term care insurance offers extensive coverage for care services, potentially beyond what a rider can provide. In contrast, a standalone life insurance policy ensures that your death benefit remains intact for your beneficiaries, unaffected by any long-term care expenses you incur.

Both strategies have merits, and the choice depends on your financial situation, health prognosis and personal preference. Comparing life insurance quotes for those over 60 and long-term care insurance costs will help you gauge the financial implications of each option. This comprehensive approach supports thorough retirement and life insurance planning, balancing immediate care needs with future financial legacy considerations.

Navigating life insurance options in your 60s can raise questions. We answered some common consumer questions below to help you make informed decisions.