What kind of life insurance should I get at age 60?

At age 60, the best type of life insurance for you depends entirely on your specific financial goals, health, and budget. Options generally include term life for temporary needs and higher coverage at a lower cost, or permanent policies like whole life or final expense insurance for lifelong coverage and guaranteed payouts.


What type of life insurance is best for a 60 year old?

For a 60-year-old, the best life insurance depends on your goals: Term Life (e.g., 10-20 years) is cheapest for covering specific debts like mortgages. Final Expense (guaranteed issue whole life) is great for small, guaranteed burial costs without a medical exam. Whole Life offers lifelong coverage, a cash value, and inheritance potential but costs much more, while companies like Protective, MassMutual, Nationwide, and Pacific Life are highly rated for seniors. 

Which insurance is best for a 60 year old?

For seniors over 60, top insurance options vary by need: State Farm, USAA, MassMutual, Nationwide, Mutual of Omaha, Protective, and Pacific Life often lead in life insurance, while UnitedHealthcare, Aetna, and Blue Cross Blue Shield are key for health. Mutual of Omaha, Nationwide, and New York Life excel in Long-Term Care, and The Hartford (AARP) and State Farm are great for car insurance. The best choice depends on your financial goals, health, and desired coverage type (life, health, LTC, auto). 


Does it make sense to buy whole life insurance at age 60?

Key takeaways. Seniors can make the most use of whole life insurance if they buy it early in retirement. Whole life insurance offers a tax-free death benefit and cash value that can grow, as well as pay for final expenses or help establish a legacy.

What does Warren Buffett say about life insurance?

Berkshire Hathaway owns companies like GEICO and General Re, and it invests heavily in life insurance operations. Insurance is not just a side business for Buffett. It is the foundation of his success. Buffett understands that insurance is about managing risk fairly and building trust.


Life insurance in your 50s and 60s



What does $9.95 a month get you with Colonial Penn?

For $9.95 a month from Colonial Penn, you buy one "unit" of guaranteed acceptance whole life insurance, not a specific dollar amount of coverage, with the actual benefit amount depending on your age, gender, and state, generally for ages 50-85, featuring a two-year waiting period for natural deaths and no medical exams. 

What is the 7 year rule for life insurance?

The 'seven-pay' test

The IRS uses the “seven-pay” test to determine whether to convert a life insurance policy into a MEC. If you put too much money into your policy in the first seven years, it becomes a modified endowment contract.

Why is whole life insurance a money trap?

Whole life insurance builds cash value, but here's the catch: It can take years—sometimes over a decade—before the cash value grows into a meaningful amount. Initially, most of your premiums are allocated to fees, commissions, and insurance costs.


What does Dave Ramsey say about term life insurance?

Dave Ramsey strongly advocates for term life insurance, calling it the only smart option, to provide income replacement for dependents during a specific period, typically 10-12 times your annual income for a 15-20 year term, while avoiding expensive permanent policies that bundle investing with insurance. He stresses that life insurance isn't for wealth transfer but a temporary safety net, allowing you to invest the savings to become self-insured by the time the term ends. 

What is the best insurance for people over 60?

For seniors over 60, top insurance options vary by need: State Farm, USAA, MassMutual, Nationwide, Mutual of Omaha, Protective, and Pacific Life often lead in life insurance, while UnitedHealthcare, Aetna, and Blue Cross Blue Shield are key for health. Mutual of Omaha, Nationwide, and New York Life excel in Long-Term Care, and The Hartford (AARP) and State Farm are great for car insurance. The best choice depends on your financial goals, health, and desired coverage type (life, health, LTC, auto). 

Can a 69 year old get life insurance?

Yes, a 69-year-old can absolutely get life insurance, with options like term, whole, final expense, and guaranteed issue plans available, though coverage amounts might be smaller and premiums higher than for younger individuals. The key is exploring options like simplified issue or guaranteed acceptance policies, which often skip medical exams, and working with an agent to find the best fit for budget and health, whether for funeral costs, long-term care, or leaving an inheritance.
 


What insurance can I get at age 62?

Types Of Health Insurance For Early Retirees
  • Individual and family health insurance plans.
  • A significant other's health insurance plan.
  • Medicaid.
  • State health insurance Marketplace premiums for early retirees.
  • Joining a spouse or significant other's health plan.
  • Medicaid for early retirees.
  • Couples with age differences.


What not to say when applying for life insurance?

  • Avoid Providing Inaccurate Health Information. ...
  • Don't Underestimate Lifestyle Risks. ...
  • Avoid Exaggerating Income or Financial Status. ...
  • Don't Hide Smoking or Substance Use. ...
  • Avoid Making Assumptions About Coverage Needs. ...
  • Don't Rush Through the Application.


What does Suze Orman say about life insurance?

Suze believes that permanent life insurance such as whole life or indexed universal life (IUL) are bad investments, much like other financial entertainers such as Dave Ramsey. In her opinion, she feels you would be better off investing the money you save by buying cheaper term life, than by investing in life insurance.


How much does a $1,000,000 life insurance policy cost per month?

A $1,000,000 life insurance policy can cost anywhere from $30 to over $100 per month, depending heavily on your age, gender, health, smoking status, and the type/term length (e.g., 20-year, 30-year) of the policy. For a healthy 40-year-old, a 20-year term might range from about $50-$100 monthly, while a younger, healthier person could pay significantly less, and older individuals or those with health issues pay more. 

Why does Dave Ramsey say no to whole life insurance?

For every $100 you invest in whole life insurance, the first $5 goes to purchasing the insurance itself; the other $95 goes to the cash value buildup from your investment, Ramsey says. But for about the first three years, your money goes to fees alone. Someone is making out, and it's not your beneficiary.

How much a month is a $500,000 whole life insurance policy?

A $500,000 whole life insurance policy costs roughly $200 to over $800+ per month, heavily depending on age, gender, health, and smoking status, with younger, healthier non-smokers paying less (e.g., a healthy 30-year-old might pay $400-$500/month) and older smokers paying significantly more, as whole life is more expensive than term due to lifelong coverage and cash value. 


What is the bad side of whole life insurance?

The main disadvantages of whole life insurance are high premiums (much more expensive than term life), complexity, limited investment growth (cash value grows slowly compared to other investments), and lack of flexibility, requiring a long-term commitment, with potential surrender charges if canceled early, making it a poor fit for many budgets and financial goals compared to simpler, cheaper options like term life. 

Do I get my money back if I outlive my life insurance?

You generally can't get a full refund from a lapsed life insurance policy, especially term life, but you might recover some value from policies with cash value, like whole life, by surrendering for a reduced amount or using non-forfeiture options (paid-up value). For term policies, premiums are usually gone, but reinstatement is often possible, though it may require health questions and paying back premiums plus interest. Always contact the insurer quickly to explore options like reinstatement or cashing out the policy's built-up value. 

How much can you inherit from your parents without paying taxes?

While state laws differ for inheritance taxes, an inheritance must exceed a certain threshold to be considered taxable. For federal estate taxes as of 2024, if the total estate is under $13.61 million for an individual or $27.22 million for a married couple, there's no need to worry about estate taxes.


What does Martin Lewis say about life insurance?

Martin Lewis's Thoughts On Life Insurance. Generally, Martin recommends Life Insurance as a financial safety net for you and your family. It's a way to buy peace of mind, helping to relieve your loved ones' financial burden during an already difficult time.

How much is a $50,000 life insurance policy from Colonial Penn?

A $50,000 life insurance policy from Colonial Penn can be quite costly because they sell insurance in expensive "units," often requiring 20-25 units for $50,000 coverage, which could mean over $200 monthly for seniors, making it pricier than other companies offering similar coverage at lower rates for good health. For example, a 75-year-old man might pay around $576 monthly for $50k, while a 40-year-old man pays about $76 monthly, highlighting how age significantly drives up costs for larger amounts.
 

What death is not covered by life insurance?

Life insurance typically excludes deaths from suicide within the first one to two years (suicide clause), deaths during illegal activities, those resulting from misrepresentation on the application, murder by a beneficiary, and sometimes deaths from extreme sports or war, though coverage for certain exclusions like war or high-risk activities might be added with riders. Always read your specific policy for exact exclusions, as they vary by insurer.
 


What is the best life insurance for people over 60?

The best life insurance for over 60 depends on your goals, but term life offers affordable temporary coverage (mortgage, income), while whole life provides lifelong protection and cash value. Top companies for seniors include Protective, Pacific Life, Nationwide, New York Life, MassMutual, and AARP, offering competitive rates and options like no-medical-exam policies (Aflac, Mutual of Omaha) or excellent customer service (State Farm, Pacific Life). For affordability and ease, term life is often recommended, while final expense plans are great for covering burial costs.