Reaching Senior status has lots of benefits. Events may be discounted, and movie admissions are frequently reduced. Retirement from a career or job is usually looming, and Social Security retirement benefits and Medicare health insurance become available at age 65.
Does life insurance fit into the picture of retirement?
For people who have relied solely on their employer’s life insurance coverage, buying individual life insurance may feel like being in uncharted territories.
A group plan may allow conversion to an individual plan, but the cost is usually higher than what you were paying as an employee.
Explore Coverage
Learn more about life insurance products
Buying life insurance after age 65 is possible and affordable.
Can I buy life insurance after I turn 65?
Yes, you can buy life insurance after you turn 65.
Age is considered part of the risk assessment insurance underwriters and actuaries use in determining the cost of a life insurance policy. Depending upon factors such as age, health, gender, and lifestyle habits, you may be denied life insurance or pay a higher premium based on these factors.
How will a life insurance plan help after retirement?
Life insurance in your later years can be of benefit for many reasons:
- A death benefit can cover final expenses of a funeral
- It can help pay off a mortgage or other debts
- It can be given as an inheritance
- It can be used for estate taxes or business debt
What type of life insurance should I buy?
Whole life insurance may make sense, even though you may be paying more in premiums at the age of 65.
Whole life insurance also creates cash value as part of the policy. Accelerated death benefit claims are often a feature of a whole life insurance policy and can be used if you are diagnosed with a terminal illness, allowing you to withdraw part or all of the death benefit while still living.
When you buy a whole life insurance policy, your premiums are locked in, which can be helpful to budgeting if your earnings during retirement are fixed.
Final expense life insurance
Final expense life insurance is another alternative. It is a form of life insurance expressly created for funeral expenses. The death benefit works the same way – your beneficiaries receive the death benefit upon submitting the death certificate and forms to the insurance company.
Final expense life insurance is usually offered and bought for the estimated amount of funds needed to cover a funeral and burial or cremation. The policy’s sole purpose is to create a financial means to plan and pay for funeral costs.
However, the assigned beneficiary usually receives the death benefit in cash.
Guaranteed Issue Life Insurance
A guaranteed issue life insurance policy doesn’t require medical questions or a medical exam. This may help in securing a life insurance policy after retirement.
It’s designed to pay for funeral expenses, which is why policies are usually small amounts. Typically, it’s offered to those 45-85 years old.
With no health qualifications, this insurance is guaranteed.
While you won’t have to go through the process of answering medical questions and undergoing a physical exam, guaranteed issue life insurance doesn’t provide any information to insurance companies about how healthy an individual is, which may raise the premiums higher than insurance underwritten with a medical exam.
Buy today
There are certain types of life insurance policies available even during your retirement years. Buying sooner, rather than later, is the best way to protect your family and loved ones from the burdens of unpaid debts or funeral cost.
Talk with a life insurance agent today, and find the best coverage for your needs.
Sources:
- Experian, https://www.experian.com/blogs/ask-experian/life-insurance-after-60/, accessed 2023.
- Investopedia,https://www.investopedia.com/articles/personal-finance/010716/do-you-need-life-insurance-after-you-retire.asp, accessed 2023.