Finding an Affordable Life Insurance Policy for Seniors Over 60

According to USA Today, the official life expectancy rate of Americans in 2012 was 72.8, which was a record high. Though it is indeed good news, it also comes with the additional responsibility of having to plan for your future so that you don’t outlive your retirement savings. When you aren’t working, it is advisable that you have fixed expenses for things such as insurance, utilities and housing costs (of course, it is better not to have any kind of mortgage).

Choosing a life insurance policy that won’t burn a hole in your pocket is important. If you are looking for an affordable life insurance policy for seniors over 60, then you need to consider certain essential factors such as your retirement age, the benefits offered, and the age at which these benefits become available.

The following factors determine the amount and duration of the life insurance required:

Full Retirement Age: The Social Security Administration has listed the age at which one can attain full retirement. It should be noted that the earliest age at which a social security benefit can be availed is 62. However, there will be a certain loss of benefit if it is received so early on.

Types of Insurance: There are two major types of life insurance policies — term insurance and permanent life. Permanent life is further divided into whole and universal life insurances. Term life insurance is an affordable alternative to permanent life insurance. You will need to pay low and fixed monthly premiums depending on the length of the policy and the coverage. It is also a good option for covering your short-term financial requirements. Whole life insurance provides you protection throughout your life. It does not expire or reduce in value. Premiums don’t increase and they remain fixed.

Other things to Know:

Individual or Group Policies – Younger people who are in good health can choose individual policies. The main advantage of opting for an individual policy is that you will pay lower premiums. However, as you grow older, the premium rate increases. Individual policies also give you maximum choice as you can find a policy that meets your specific needs. Employers, government entities, churches and unions buy group insurance policies. A single contract insures a group of people under this policy. Group insurance can be a great alternative if you are looking for low premiums and good coverage.

Policy Riders – There are various riders that are available when it comes to life insurance. These are additional benefits that you can add to a policy to expand the coverage by paying an additional premium. For instance, a spousal rider gives you two policies in one. The disability waiver for premiums covers the premium on your behalf if you meet the disability criteria defined in the policy. The rider provides disability benefits for seniors who are above the age of 60.

Life insurance premiums for people above 60 are usually on the higher end. However, there are many companies which cater to the senior market. This allows seniors who are older than 60 to receive affordable insurance. Consulting a leading insurance provider will help you select the right life insurance policy to meet your budget and specific requirements.