What to Look for in Life Insurance Over 65

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What to Look for in Life Insurance Over 65

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As retirement age approaches, it becomes crucial to assess your life insurance benefits. Updating your life insurance at age 65 or older becomes important because needs change as you grow older, from health to home to retirement funds. What you looked for in a policy when choosing life insurance at age 50 may differ from what you need at age 65. While choosing or changing coverage can be costly later in life, here are some important considerations to keep in mind about your benefits.

Duration of Policy and Duration of Benefits

When choosing your coverage, the duration of your policy and your benefits is always a key factor to consider. There are a few options to explore!

Healthy individuals up to the age of 70 can typically obtain a life insurance policy for up to 20 years. This type of policy, known as term life insurance, is a popular choice for many. However, if you’re considering purchasing a term life policy, it’s important to take into account your health and family history. Since the term is 20 years, a healthy individual may face the risk of outliving the policy’s coverage.

Another option is to choose a permanent policy. You can either select it when you turn 65, or you may be able to convert your term life policy to a permanent policy. If you already have a term life policy, reach out to your agent and inquire about your options!

A permanent policy, such as universal or whole life insurance, is a type of coverage that builds cash value over time. These types of coverage could provide benefits to your loved ones or serve as additional income for you at a later date. While choosing a whole life insurance policy at age 65 may have higher premiums, it eliminates the risk of outliving your policy.

Peace of Mind vs. Cost

It’s true that life insurance premiums become more expensive as you age. However, what price can you put on peace of mind? Term and whole life insurance benefits can provide for your loved ones long after you’ve passed.

Additionally, a permanent life insurance policy provides cash value that grows over time, helping to diversify your investment portfolio. This policy remains stable even if something happens to other investments. Plus, you and your loved ones will have the cash value to fall back on!

Additional Coverage Needs

You may already have a life insurance policy, but is it enough? Life insurance can cover expenses such as mortgage payments, medical bills, and final expenses. Having the right type of coverage can ease the burden on your loved ones in the event of your death.

While securing life insurance coverage earlier in life is ideal, choosing a plan at or over the age of 65 can still make financial sense. You just need to know what to look for based on your unique life insurance needs, ensuring that you choose the right benefits.

FAQs

Q: How long can I obtain a life insurance policy if I’m over 65?

A: Healthy individuals up to the age of 70 can typically get a life insurance policy for up to 20 years. However, it’s important to consider your health and family history when choosing a term life policy.

Q: What is the difference between term life insurance and permanent life insurance?

A: Term life insurance provides coverage for a specified term, usually 10, 15, 20, or 30 years. On the other hand, permanent life insurance, such as universal or whole life insurance, provides coverage for your entire life and often includes a cash value component.

Q: Can I convert my term life policy to a permanent policy?

A: Yes, it may be possible to convert your term life policy to a permanent policy. Reach out to your agent to inquire about your options.

Conclusion

Choosing the right life insurance coverage after the age of 65 is essential as your needs change. Consider the duration of the policy and benefits, weigh peace of mind against cost, and assess if you need additional coverage. By understanding your unique life insurance needs, you can ensure that you select the right benefits to protect yourself and your loved ones.