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Seniors Over 60-Are You Spending Too Much On Your Life Insurance

Lenny Robbins
Jan 17, 2014 12:00:00 PM

calculator saying how much? to ask if seniors over 60 are spending too much on their life insuranceLive insurance for seniors over 60 doesn’t have to be confusing or difficult.  At this stage of life your needs are different than when you were in your 20’s and 30’s with a young family.  But you still have loved ones, a business, or an estate to protect.  Why spend more (time and money) than you have to?

Your Best Secret Weapon

Life insurance for seniors is not easy to figure out on your own! Have you spoken with an independent life insurance agent?  Well, you should.  This simple action can take away most of the stress when you need new coverage.  An independent life insurance agent is your best secret weapon for many reasons.

How Do You Find the Best Coverage?

Step 1: First you have some thinking to do.

  • What are the reason(s) you need insurance? 
  • Are you protecting your spouse?
  • Do you have a special needs child?
  • Do you have a business that would suffer without you? 
  • Do you want to have funds to protect your families inheritance and cover estate taxes?
  • Are you looking for coverage to pay off a mortgage or debts you may leave behind?
  • Don you want a policy to cover your final expenses?
  • Or is it for another reason not mentioned here?

Step 2: When you know why you need insurance you can discuss with your agent the best type of policy for your needs. 

  • Level term insurance- this has a level premium and level face amount for a period of time- usually 10, 20 or 30 years.  Depending on your age, seniors over 60 may be limited in the length of a term policy you can buy.
  • Permanent insurance- this includes universal life and whole life.  These policies last for your lifetime and consequently are more expensive than tem policies. Universal life insurance starts as low as $25,000 of insurance. These policies are fully underwritten (you will have to take a medical exam and give blood and urine samples). Whole life insurance includes final expense policies which start as low as $2,000 of coverage. Final expense policies have simplified underwriting meaning no exam and blood and urine. They are relatively easy to obtain.

Step 3: Financial Considerations

  • A very important thing to remember is that an agent can only give you their best estimate of what your premium will be.  Only an insurance carrier can make you an offer for coverage.  However, your agent should ask about your medical history and family history, etc.  However, your agent will make their best guess and then find you the lowest cost carrier for that rating.  Did you know that an agent has access to many more companies to quote than you can find on the internet?  It’s true and it’s much easier than trying to figure things out yourself.
  • You want to have a premium that is comfortably affordable for you.  No one wants to struggle to pay insurance premiums.  You can look at your desired amount of coverage and see if the premium is within your comfort range.  If so, great…then go to the next step.  If not, tell your agent a comfortable premium and they can tell you how much insurance you should be able to purchase for that amount.
  • Do you currently have a policy with cash value that you don’t need to take?  If so, you may be able to transfer the money to a new policy which can lower the new premium and make permanent coverage more affordable.

Step 4: Finding Your Agent

  • A captive agent works for one company and can only offer you that company’s products.  Although the company may be well rated and the products excellent, you are limited to these prices and these products only.
  • An independent agent is usually contracted with many companies and can contract with most companies.  This gives you many more choices of products and carriers.  What you will find is that companies have slightly different guidelines for underwriting that can make a big difference to your premium costs.  Your agent can find you the best pricing by comparing many different companies. 

The Bottom Line

Because you are older, there are often more issues to consider when you are looking for additional insurance or new coverage.  Having an independent life insurance agent can make your life easier because they know how to help you with the little details that together can make a big difference for you.

Looking for life insurance now that you are a senior and over 60?  Make the smart choice and contact your independent life insurance today.

Life Insurance for Seniors Guide