Life expectancies in the past were far shorter than they are today.
That being the case, life insurance cover for those approaching or into their 60s was very expensive.
Today, it is not uncommon for people to live well into their 70s as well as remaining active and healthy into their 80s.
For this reason, life insurance cover has become much more affordable for everyone in this age category.
A Fairer Time For All
The days of only the wealthiest being able to afford cover in their latter years is long since past. The reality today is that many individuals simply could not afford life insurance of any kind until retirement approached. Once the kids are out of the house and debt accumulated during their younger years has been paid off, there is finally enough leeway in the budget for some type of life insurance cover.
Whereas it was almost impossible to find age specific term life insurance as little as a decade ago for those over 60, today it is a common type of insurance. With so many individuals living longer, insurance companies are no longer presented with a huge risk for insuring people for the first time when they are in their 60s. In fact, like term policies for younger age groups, there are policies available that require no medical underwriting at all.
This is rather important for anyone over 60 or 65, especially if they have some minor medical condition. As long as the condition is not life threatening, they will generally qualify for a standard policy. However, even if the individual is suffering from something such as diabetes, there are still policies available offering them cover, albeit at a higher price point.
As with all policies, premiums still are affected by certain conditions, such as age, gender, and smoking status. For those individuals that do smoke and are merely shopping around for policies at a later time, quit smoking immediately as only one year away from the habit is required to be considered a non-smoker.
Creating Your Financial Legacy
Today, many couples are having children later in life. In past years, many couples had their children in their 20s and early 30s. In most cases, the children were either out of the home or well on their way in their own career.
Over the last few decades, this has changed and more and more couples are waiting until their mid to late 30s and even into their 40s before having children. Because of the financial commitment required to raise children, they are unable to create a retirement account when they are in their peak earning years.
For parents, this means children are often far younger when the parents pass on…
This can create some financial challenges in addition to the emotional challenges that come with the death of a parent. If the children have yet to start their career or if the parents do not have a significant savings, simple arrangements of the estate may put them in difficulty.
Over 60s life insurance cover will provide a lump sum payment to the beneficiaries upon the death of the insured. For those that have not managed to leave a nest egg for their children or grandchildren, this is a great way to cover estate costs, such as debt settlement and burial costs, as well as a way to create a legacy in their golden years.
They can still enjoy their income and live the retirement they have dreamed of while at the same time providing an inheritance for their family members.
Are There Drawbacks for Over 60s Life Insurance?
It is always a good idea to be fully aware of both the pros and cons of any insurance before moving forward. While we have told you about some of the benefits of over 60s cover, we would also like to discuss some of the caveats of this type of coverage.
If this is the initial policy, it is likely that coverage will not actually become active for as many as 24 months. This lowers the exposure of the insurance companies and enables them to provide rates that are more competitive. However, in most cases, the insurance companies will refund premiums paid if the insured passes away during this initial period.
It is also important to make sure premiums are paid on time every month. A late or missed payment can result in the policy becoming void. If this happens, you may find that you now fall into a different category, resulting in higher premiums. The older you are, the more difficult it may be to find and afford coverage.
Compare Life Insurance Premiums to Find the Best Deal
Did you know that insurance rates can vary as much as 50 percent from provider to provider for the same insurance coverage? We encourage you to shop around to not only find the best policy, but also the best price. Genesage provides an online comparison tool to make this as easy as possible for you.
When you use our website, you are never forced into buying anything. We simply provide the most up to date pricing by all providers. Our job it to locate as many companies as possible that offer these policies and provide as much information as we can so you can make an informed decision when buying your over 60s life insurance cover.
Technology vs. Old School
While many of our older clients have taken to modern technology, there are still plenty of people that enjoy shopping around the old-fashioned way. Maybe they do not trust computers or the Internet or maybe they just prefer to talk to an actual person. Genesage has insurance experts at the ready to service these customers as well.
We have hours every day during the week as well as limited Saturday hours. If you happen to be searching while our offices are closed, you can leave a message or drop us a note and one of our team members will get back to you as soon as they are available.
In this day and age, there is simply no reason for anyone to not have a life insurance policy. If you think 60 is too old, think again! Believe us, you are not alone in searching for an over 60 life insurance policy, which is a good thing, because providers have better policies available today at rates that are more reasonable.
Whether you want to search on your own or would like help from a member of our team, we look forward to providing you with the best options for your needs and budget.