As you enter retirement, you may find yourself thinking more about the future of your family. Whether you already have coverage in place or you’re shopping for your first policy, whole life insurance is available for people over 60, providing you with the peace of mind that comes with knowing your family will not be burdened with bills after you pass. Let’s explore the benefits, coverage options, rates, and why whole life insurance is still important for seniors.
Can You Get Guaranteed Whole Life Insurance for Seniors?
While many of the policies available to seniors may not offer the same amount of coverage as fully underwritten policies for younger individuals, they still provide significant benefits. The guarantees of whole life insurance are based solely on the claims-paying ability of the issuer. As long as all premiums are paid, these guarantees remain in place. Although it may not be possible to purchase the same amount of life insurance you could have purchased at age 45, modest policies are available to almost anyone.
Will I Need a Medical Exam?
The need for a medical exam depends on the type of coverage you want. Some policies offer limited coverage without medical underwriting, but these may not be the best solution. If you can qualify for a policy that includes a medical exam, you will have more options and may be able to obtain a higher amount of protection.
How Much Coverage Can You Get?
While policy amounts can vary widely, whole life insurance for seniors typically offers coverage ranging from $10,000 to $50,000. Some companies have a minimum coverage requirement, and higher amounts may require a medical exam.
Whole Life Insurance Rates for Seniors
The life insurance benefit for senior policies tends to be smaller, which means that the premium amount will correspond to the coverage. A New York Life agent can review coverage options to determine rates that fit within your budget.
Can I Outlive My Insurance?
While it is unlikely, even “permanent” life insurance policies can expire if you reach a certain age. This is called maturing, and it usually happens at age 95, 100, or even 121 depending on your policy. When your coverage matures, you receive all of the cash value (usually equal to the coverage amount) the policy has built up, and the policy comes to an end. Since you’ve already received the full value, there isn’t an additional life insurance benefit when you pass. If you are worried about outliving your policy, consult an agent to see when your policy matures.
Why Should I Consider Whole Life Insurance for Seniors?
As you enter your golden years, you may no longer have a need for a large amount of life insurance. However, smaller whole life policies for seniors can still help your family with several common end-of-life costs. Here are a few reasons why you should consider such a policy:
Term May Be Unavailable or Too Expensive
As you get older, the cost of a new life insurance policy increases significantly. Term life insurance may become unaffordable due to increased health risks associated with age, and some companies do not sell term life to people over a certain age. This often makes smaller whole life insurance policies for seniors a better option.
Cover Funeral Expenses
The average funeral today costs $8,000 to $10,000 or more. A small whole life policy, often called final expense insurance, can ensure that your family does not have to worry about how to cover these costs during a time of mourning.
Pay Off Debts or a Mortgage
Putting a life insurance policy in place to pay off a mortgage or other debts can help your family tremendously. It’s not uncommon for family members to need to sell off assets, like a cherished family home, because they cannot afford the additional cost of a mortgage.
Prepare for Medical Bills
End-of-life medical expenses can be particularly high, affecting how much seniors are able to leave to their heirs. This can cause extra stress and be a significant financial burden during a difficult time. A whole life insurance policy for seniors can give you the peace of mind that comes from knowing your family can take care of any medical bills you leave behind.
Do My Whole Life Options Change with My Age?
As a general rule, your life insurance options become more limited as you age. People in their fifties will have access to a wide variety of whole life policies. However, those who are in their sixties, seventies, or eighties may find that they have fewer choices, or that the amount of coverage they are eligible to receive is lower.
Other Options to Protect Your Future
Whole life insurance is not the only way to ensure a healthy retirement and take care of your family when you pass. New York Life offers a full range of products that, when combined smartly, can create a financial safety net throughout your golden years. Consider the following options:
Immediate Income Annuities
Annuities guarantee that you won’t outlive your retirement savings. By exchanging a lump sum, often from a 401(k) or another retirement savings vehicle, you can receive guaranteed income for life, regardless of how long you live. Immediate payments ensure a predictable income throughout retirement.
Proper Estate Planning
Regardless of your level of wealth, having a well-thought-out will and estate plan is important. Clearly stating how you would like your assets and savings split among your beneficiaries will help avoid complications and delays. Smart estate planning can significantly reduce the tax burden for your family after you pass.
If you’re already at retirement age and would like to explore whole life insurance options, our agents can help you find something that fits into your budget and delivers the peace of mind you’re looking for. Let us help you make sure your family is taken care of.
FAQs
Q: Can I get guaranteed whole life insurance as a senior?
A: Whole life insurance for seniors is available, but the coverage amounts may be smaller compared to policies purchased at a younger age. However, modest policies are available to almost anyone.
Q: Will I need a medical exam for whole life insurance?
A: The need for a medical exam depends on the type of coverage you want. While some policies offer limited coverage without medical underwriting, policies that include a medical exam provide more options and potentially higher coverage.
Q: How much coverage can I get with whole life insurance as a senior?
A: Whole life insurance policies for seniors typically offer coverage ranging from $10,000 to $50,000. Higher coverage amounts may require a medical exam.
Q: Can I outlive my whole life insurance policy?
A: Even “permanent” life insurance policies can expire if you reach a certain age. When your coverage matures, you receive the cash value, usually equal to the coverage amount, and the policy comes to an end. Consult an agent to determine when your policy matures.
Q: Why should I consider whole life insurance as a senior?
A: Whole life insurance for seniors can help cover common end-of-life costs, such as funeral expenses, debts, mortgages, and medical bills. It can provide financial security for your family during a challenging time.
Conclusion
Whole life insurance for seniors offers valuable benefits and peace of mind, ensuring that your family is protected from financial burdens in the future. While coverage amounts may be smaller, whole life insurance policies provide a safety net for common end-of-life expenses. Explore your options, consult an agent, and take control of your future today.
