Published on September 2, 2020 | 4 min read | LPL Financial
Should you really consider getting life insurance when you are close to 60?
September is National Life Insurance Awareness month. And while most of us likely recognize that life insurance provides us peace of mind and security, there may be a few things you don’t know.
Many people Ð but not enough Ð will buy life insurance in young adulthood. But life coverage provides some benefits even as you close in on age 60.
Let’s say you’re 57. Consider these four questions before deciding on a type of life insurance.
At 57, you are either retired early or close to retirement. Your family most likely depends less on you as your children, hopefully, live on their own, out of the house.
Regardless, you probably still want to provide in part for your family Ð the reason life insurance remains important. With luck, you suffer from no medical ailments. You easily think your good health will continue forever Ð but illness happens, and happens more with age.
Other events later in life bring reasons for life insurance too. Many young adults often secure coverage after marrying or having a baby. But the number of American women giving birth in their 40s continues to rise as does the number of men and women waiting longer to marry.
Life policy needs vary with your age. A term life policy appeals to many ages, particularly someone 57.
Once a term policy expires, you decide whether to renew it or to let the coverage end. In addition to being cheaper than whole life or other life insurance types, term offers protection against a number of different bad scenarios and sells for several different spans of time. It can, for example, cover a 57-year-old until death.
That’s an impossible question to answer precisely because rates depend on factors aside from your health. If you are a non-smoker who can prove a clean bill of health, you might qualify for a preferred plus rate. This means you’re in the healthiest, less risky group for the insurance company and pay the lowest premiums.
Many providers perform a medical exam as well as obtain a history of your medical records before offering a final quote.
According to Quotacy, the average annual life insurance rates for men are as follows:
| Age at purchase | Policy amount | 20-yr term life | 30-yr term life | Whole life |
|---|---|---|---|---|
| 30 | $500,000 | $232 | $373 | $4,747 |
| 40 | $500,000 | $347 | $612 | $7,085 |
| 50 | $500,000 | $856 | $1,535 | $11,036 |
| 60 | $500,000 | $2,396 | N/A | $18,164 |
Again, monthly rates will vary according to gender, weight, alcohol and tobacco use, health and other factors.
Although some consider pushing 60 late to start shopping for life insurance, it’s never too late. Sooner the better, in fact, as rates increase with age and two decades can quadruple your premium.
Further, the coverage for a 57-year old is not too different from the coverage needed for a 47-year old.
But, just as your financial plan is customized to you and your needs, so is your insurance coverage. You might need less coverage compared to someone ten years younger and you might need more too.
If unsure of what coverage you need, seek the advice of a financial professional. You will save time and money in the short- and the long-term (no pun intended).
Insurance gives you peace of mind at a time of life when you need peace most. And like having children and getting married, buying it isn’t just for the young any more.
Important disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your stateÕs insurance department for more information.
Please keep in mind that insurance companies alone determine insurability and some people may be deemed uninsurable because of health reasons, occupation, and lifestyle choices.
This article was published by RSW Publishing.
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