Turning 60 is a big milestone. And for many, it’s a time to rethink financial security. If you’re in your 60s, you may be wondering if life insurance still makes sense, and if so, what type of coverage is best. The good news: there are plenty of options designed to fit your stage of life and your unique goals.
Why Life Insurance Still Matters After 60
Many people think life insurance is only valuable when raising kids or paying off a mortgage. But for those over 60, the need often shifts rather than disappears. You may want to:
- Make sure loved ones aren’t burdened with funeral costs or medical bills.
- Provide a financial cushion for a surviving spouse.
- Leave a legacy for children or grandchildren.
- Cover debts that may still remain.
4 Types of Life Insurance Available
Several types of policies are available to people over 60, each with different benefits.
- Term Life Insurance: This type of policy covers you for a set period of time, often 10, 15, or 20 years. Premiums are usually lower than permanent insurance, but rates will be higher than what you’d pay in your 30s or 40s. Term can make sense if you only need coverage for a specific timeframe, like until a mortgage is paid off.
- Whole Life Insurance: Whole life lasts your entire life and builds cash value over time. Premiums are higher than term but remain fixed. This option is attractive if you want guaranteed coverage and the ability to leave something behind no matter when you pass.
- Final Expense Insurance: Sometimes called burial insurance, this is a smaller whole life policy designed to cover funeral costs and related expenses. Coverage amounts are usually modest, which makes it more affordable.
- Guaranteed Issue Life Insurance: If you have health issues that make it difficult to qualify elsewhere, guaranteed issue policies may be worth considering. Approval is automatic, though premiums are higher and coverage limits are lower.
How to Choose the Right Policy
The best choice depends on your goals and budget. Start by asking:
- Do I want coverage that lasts only a certain number of years or for life?
- How much can I comfortably afford in monthly premiums?
- Am I mainly looking to cover funeral expenses or do I want to leave a larger inheritance?
- Do I have existing health concerns that could affect eligibility?
Answering these questions will help narrow your options. For example, someone in good health who wants coverage until retirement income stabilizes might lean toward a term policy, while someone focused on leaving funds for final expenses might prefer a final expense policy.
Life Insurance Agents in Harrisburg, PA
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At The Kind Insurance, we pride ourselves on leading with kindness. That means educating our clients and never suggesting more coverage than they actually need.
Reach out to The Kind Insurance to discuss your current coverage & how you might be able to save money. We are an independent insurance agency. That means we are not tied down to any specific selection of insurers. Our agents work with you to understand your needs and budget and then find a plan that suits you the best.
FAQs
Is it too expensive to buy life insurance after 60?
Not necessarily. While premiums are higher than when you’re younger, options like final expense or guaranteed issue policies can be quite affordable. Term life for a shorter duration (e.g., 10 years) also helps keep costs manageable. An independent agent can compare carriers to find the best rate for your age and health.
Can I get life insurance if I have health problems after 60?
Yes. Guaranteed issue life insurance is available with no medical questions or exam. However, it typically has a two‑year waiting period before full benefits apply (during which you might only get a refund of premiums plus interest). Simplified issue policies ask a few health questions but don’t require an exam and may offer better rates if your conditions are well‑controlled.
What is final expense (burial) insurance, and how much does it cost?
Final expense insurance is a small whole life policy (typically $5,000–$25,000) designed to cover funeral, cremation, and related end‑of‑life costs. For a healthy 60‑year‑old, monthly premiums can range from $30 to $70 for a $10,000 policy. It’s easier to qualify for than standard whole life.
Does life insurance over 60 build cash value?
Only permanent policies like whole life or universal life build cash value. Term life does not. If cash value growth is important to you, a whole life policy can accumulate savings over time that you can borrow against. However, premiums are higher than term.
Can I convert my existing term life policy now that I’m over 60?
Many term life policies include a conversion privilege that allows you to switch to a permanent policy (like whole life) without a new medical exam, even after age 60. Check your policy documents or ask your agent – conversion windows often expire by age 65 or 70.
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