This Helpful Step-By-Step Guide Will Point You in the Right Direction Quickly and Easily
We are going to start out with the most important subjects we think you should know about. Having sufficient product knowledge and an understanding on how the application process works is very important. The more you know the easier it will be to make an educated buying decision when purchasing life insurance for seniors over 60.
Why should you apply for life insurance over age 60?
Unless someone is just a very young child, they are going to have monthly expenses and financial responsibilities. Unfortunately none of us can live forever and when it is your time, you go and that is all there is to it. When this happens, any income you have stops and someone else feels the financial bump. The after effects of your passing may be severe and put your family members in financial harms way. Purchasing life insurance eliminates this nightmare and keeps your family financially safe and sound. Protecting your family with life insurance is one of the best investments you can make.
Who are the best life insurance companies for seniors over 60?
You have many fine choices in life insurance companies regardless of what state you live in. Here are some of the companies that would be an excellent choice to apply with.
- Prudential
- AIG American General
- Transamerica
- North American
- Banner Life
- Protective Life
- Mutual of Omaha
- Gerber Life
There are actually more highly rated life insurance companies than this. But, these are some of the best for seniors over the age of 60.
Maybe you don’t even need life insurance at all
It is possible you don’t even need to be shopping for senior life insurance at all. If you fall into these categories below, you may want to just save the money and go without life insurance all together.
- There are no dependents that would suffer from your income loss.
- You have absolutely no debt or financial responsibility what so ever.
- Your cash on hand is sufficient to completely cover funeral expenses.
If you have no debt, no dependents and can cover burial expenses, you can take safely take a pass on purchasing life insurance.
How much life insurance do I actually need to apply for?
This is a question that you are going to have to carefully consider in order to make that decision. Here are some of the questions you need to take into consideration:
- Do you have an outstanding mortgage you are responsible for?
- Take into consideration what credit card debt you normally have.
- Does your family still depend on your monthly income?
- Are you planning on leaving your family a large cash inheritance?
Use our face amount calculator to help you decide on how much of a face amount (death benefit) you will actually need. You will find that the number one deciding factor will be, how much can you afford each month for your premium. You should only buy what you can comfortably afford.
What Type of Life Insurance for Seniors Over 60 Should I Buy?
You have quite a few good choices concerning what type of life insurance for seniors over age 60 you can buy. A lot of this will be dependent on your age, your health history, your required death benefit and how long you need the coverage for. We will start with the most common and most popular plan design.
Term life insurance
Term life insurance plan designs are very simple. They are designed to last for a specific term period designated by the policy. These term periods are purchased in 5 year increments starting with 5 years. Most of the term policies will have a maximum term period of 30 years. As an individual over 60, you may only be offered a 10, 15 or 20-year term policy. Most companies draw the line at 8o years of age for their term policy limits. Term life insurance for seniors over 60 years old will be the most cost effective plan design by far.
Whole life insurance
Whole life insurance is a form of permanent life insurance that stays in force as long as you pay your premiums. It builds up a cash value unlike term insurance. For most situations, whole life insurance is too expensive and not very cost effective. In the case of life insurance for seniors over age 60, whole life can be both affordable and a good fit.
Universal life insurance
Universal life insurance is a very good product if you are looking for permanent insurance without building a cash value. Just like any type of permanent coverage, universal life insurance can cost quite a bit more than term. There are universal life policies that do offer a cash value but that is the ingredient that increases the premium.
Simplified issue life insurance
Simplified issue life insurance for seniors over 60 is normally issued as permanent life insurance. It is called simplified issue because the application process is much quicker and easier. This is because the insurance company underwriters don’t need to know as much about your health history as with the other plan designs. This is a form of the popular no medical exam policies that many people are applying for today. This simply means there is no medical exam required and you need to answer much fewer medical questions.
Guaranteed issue life insurance
Guaranteed issue life insurance is a plan design for people that cannot purchase life insurance of the conventional type. This is usually due to having serious medical conditions. These plan design usually offer up to a face amount of $25,000.00. They also have a 2 year waiting period before the face amount will be paid upon after death. These policies are expensive and should be considered a policy of last resort. These policies are built on a whole life chassis. Gerber Life is usually the number one company of choice for guaranteed issue life insurance.
Second to die life insurance
Second to die life insurance policies are a form of joint life insurance. What this means is the two spouses can one policy can will cover them both at the same time. This is done with just one policy to purchase with one life insurance company. This also means one life insurance premium also. You have probably heard of a “first to die policy” which is very similar. First to die policies do what the name refers to which is they pay out when the first spouse dies. After that the policy terminates and that is where it ends completely.
The second to die policies stay in force after the first spouse dies and then pays when the second spouse passes away. The policy pays out to the family members instead of the remaining spouse. Another name for these policies are “survivorship policies”. These policies are not very common today but are still used periodically.
What to Look for in a Life Insurance Company
You now have a much better background of life insurance especially when it comes to what kind of plan design to consider. What to look for choosing your best life insurance company will be one of your next steps. Here are some important points to consider when choosing a carrier to apply with:
- Companies rates – This buying point pretty much goes without saying. Nobody wants to pay any more than they have to, but you still want to choose a good company. Don’t just shop strictly by price because it is not always the best practice.
- Financial ratings – A solid financial rating will be a good indication of the carriers financial stability. You can check financial ratings by visiting the A.M. Best reporting agency.
- Policy conversion options – If you buy a term policy, make sure your policy can be converted to a universal or whole life policy. Converting your policy is an option you may later decide to use.
- Claims paying ability – Pay attention to how well your potential companies pay out on their claims. Some are better than others and this quite often depends on how well they are doing financially.
Using the correct company
All life insurance companies underwrite their applications differently. Using the most applicable company can make all the difference in the world when searching for the best rates. The health classifications is the biggest factor when determining how much your premium will be. All good insurance agents will know from experience what company would be best for you.
Connect with an independent insurance agent
If you place any value on your time. The smartest step you can take is to seek assistance from an experienced independent insurance agent. Your agent can do all the work for you and make sure you get the lowest rates free of charge and with no obligation. Independent agents otherwise known as brokers can review all the companies on the market unlike captive agents such as State Farm which has just one. Their job is to do all the leg work for you.
Use our quote comparison tool
Use our websites quoting tool to get your feet wet and see what kind of premiums you can expect for the various plan designs and death benefits. You can compare over 40 different companies side-by-side to see for yourself who has the best rates. Just complete the form on the right.
How to apply for life insurance for seniors over 60
This is actually the easiest step of them all. All you have to do is contact us and we will answer all of your questions. We will then get you started on a simple and quick telephone application where you just sit back and answer some questions. No more lengthy 20-page paper applications or complicated online applications that you need computer experience for. We normally use the Snap-App process which is the easiest telephone application used today.
In conclusion
Purchasing life insurance for seniors sounds like a complicated process but I assure you it is not. Especially when you are working with an experienced independent agent like ourselves. We have over 25 years experience helping people find the best life insurance policy at the lowest possible rates. Call us today and we will be happy to answer your questions and get you pointed in the right direction.
* You can set up a specific time to call us to discuss your best options in life insurance for seniors over age 60. Just click on this link to schedule your date and time.
All the best,
Jack Venturi
