When you think of taking out a life insurance policy, you may feel that being over 60 has prevented you from taking action before it’s too late. However, there is a wide range of options available to you for added peace of mind and protection for your loved ones.
What is an over 60s life insurance policy?
It’s essentially a life insurance policy that’s only available to those over the age of 60, as you’ve probably assumed. In exchange for a monthly premium, you’ll ensure that a lump sum will be given to a beneficiary (or beneficiaries) of your choice when you pass away.
In most cases, there’s no difference between an over 50s life insurance policy and this one. However, it’s always best to check beforehand.
The types of life insurance available for people over 60
Finding the best life insurance over 60 means knowing what types of policies are available to you. Every policy is different based on several factors, including your wants, needs, overall health, and budget range.
Whole-of-life insurance policies continue to run until you pass away. So, as long as you’re paying your premiums, you’ll be sure of payment in the event of your death.
Fixed-term life insurance coverage will cover you for only a set amount of time. This time period will be previously agreed upon by you and your insurance provider. When that time period ends, you have an option to renew.
Fixed-term policies fall under the categories of ‘increasing term’ (increased premiums/payouts in line with inflation), “decreasing term” (decrease in premiums/payouts over the course of the policy), and “level term” (a set/fixed amount throughout the policy).
What are the benefits of getting this kind of policy?
Getting a life insurance policy when you’re over the age of 60 provides benefits for both you and your benefactors. Firstly, you’ll be able to worry less about what the future holds for your spouse or family members, safe in the knowledge that you’ve made concrete plans to ensure they are well looked after.
And as for your benefactors, they’ll be able to pay for rent, mortgage payments, educational opportunities or anything else they need to with a lump sum payout.
The deciding factors in the cost of your life insurance policy
There’s a common misconception that someone who is older will have to pay a huge premium for a life insurance policy. And while it’s true that elder people tend to pay more than younger people for their life insurance coverage, there are many other factors that are taken into consideration before a decision is made regarding a premium and whether or not someone qualifies for coverage.
Aside from age, the following criteria will also be taken into account:
- Your occupation (if still working)
- How much alcohol you drink
- Whether you’re a smoker or not
- Your medical background
- (in some cases) the medical history of your family
- Your general lifestyle
Not only can these questions make you reassess your lifestyle, but they’ll also put your mind at ease once the policy is up and running. But remember that any purposefully incorrect information may void the policy. So, for the sake of your loved ones, it’s always best to be honest and open from the very beginning.