If you’re in your 60s or 70s, there are a variety of things to consider when evaluating your life insurance needs.
Am I Too Old for Life Insurance?
A common belief about life insurance is that it’s expensive, especially if purchased later in life. However, as you get into your 60s and 70s, you may not need a substantial policy since your spouse may also not have as many years of living left to cover financially.
When considering your options, it’s first important to evaluate how many people rely on you for financial support, and how much that support entails.
If you are still working, either full or part-time, it's possible that your spouse may require additional income in the event of your passing. By purchasing a life insurance policy, you can provide your spouse and family peace of mind knowing there will be funds available to help with big expenses such as a mortgage and home repairs.
Life Insurance and Your Health Status
Typically, the older you are, the more expensive your life insurance quote is going to be. This is in part due to the fact that older individuals are more likely to have health problems. In some cases, if your policy quote is extraordinarily high, you may be better off investing your money instead. Alternatively, for those with significant health problems, you may want to consider guaranteed issue life insurance which anyone can get regardless of health status. If you’re in good health, there may be a variety of both short- and long-term policies available to you.
Renewing and Extending Your Life Insurance Policy
While you may have bought a policy years ago, if you have a term policy, you may want to consider extending your coverage if you are aren’t able to cover retirement costs with pensions and savings. You can do this by either renewing your current policy or converting it to whole life insurance. If you choose to renew, it’s important to note that your premium could increase and some companies may not even allow you to renew depending on how old you are.
What to Do Next
Regardless of your age, we always recommend consulting with us to evaluate your individual situation to determine whether or not life insurance makes sense.
This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. (C) Twenty Over Ten.