27 Sep Should you really consider getting life insurance when you are close to age 60?
Life Insurance Awareness month is September
While most of us likely recognize that Life insurance provides us peace of mind and security, there are still some startling statistics that are likely not known.
For example, did you know that:
- Four in 10 adult Americans have no life insurance at all?
- Only 35% of adult Americans have individual life insurance because most rely on their employees, which would leave them without coverage if they lost their job (or changed jobs)?
- Every year, almost 600,000 Americans die prematurely and the chances that a 25-year-old male will die before reaching the retirement age of 65 is nearly 1 in 5 and for a female, the odds are only 1 in 9?
Life Insurance is Not Just for the Young
Many people – but not enough – will buy life insurance in young adulthood. However life insurance coverage provides some benefits even as you close in on age 60 and older.
Let’s say you’re 57. Consider these four questions before deciding on a type of life insurance.
What do You Need?
At 57, you are either retired early or close to retirement. Your family most likely depends less on you as your children probably live on their own, out of the house.
Regardless, you most likely still want to provide in part for your family – the reason life insurance remains important. With luck, you suffer from no medical ailments. You easily think your good health will continue forever – 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.
What is Term Life?
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.
What are Rates for a 57-year-old?
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. Again, monthly rates will vary according to gender, weight, alcohol and tobacco use, health and other factors.
What Coverage Does a 57-year-old Need?
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 retirement plan is customized to you and your needs, so is your life 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 advisor. 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.