Advice About Life Insurance Over 60

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When purchasing life insurance over age 60, you need to determine what is the best type of insurance to fulfill your goals. Life insurance over 60 may be more expensive than you would like. We have a solution that will help make your coverage more affordable. Listen and learn how.

LifeNet Insurance Solutions
11505 Eastridge Drive NE #420
Redmond, WA 98053-5758
P: (800) 698-7033
F: (866) 250-3070

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Video Transcript:

Hi. This is Terry Robbins, with LifeNet Insurance Solutions. Today, I’m going to speak with you about life insurance over age 60. There are many reasons why someone over ago 60 would need life insurance, and I think we all know what they are: Income replacement, debt and mortgage protection, provide care for a special needs child, pension maximization, estate taxes, etc. There are 2 different types of life insurance policy: Permanent and term. Term policy, the way that we prefer to sell them, is that the life insurance death benefit and the premium remain the same throughout the life of the policy. Then there are permanent policies. For today’s discussion, we’re going to talk about a guaranteed premium universal policy.

A guaranteed premium universal policy can be setup similar to a term policy, but for your lifetime. It can be set so that the premium never changes and the death benefit never changes, and there’s no cash accumulation. This is probably the least-expensive permanent policy you would be able to buy.

Let’s say that you are a 60-year-old male in good health and you’re a non-smoker, and we anticipate you’re going to get a preferred rating. If you needed $500,000 of coverage, depending on what policy you got, the rates would vary dramatically. A guaranteed premium universal would cost you about $7500 per year, a 20-year term would cost you less than $3000 a year, and a 30-year term would cost about $5900 per year. Remember, 60-year-old male, preferred rating, non-smoker.

Let’s say you need permanent coverage for one or more of the reasons that we know seniors need life insurance, but $7500 per year is a little more than you want to spend on this protection. Any protection, what are you going to do? Unfortunately, some people will go with nothing, which doesn’t really help your family. One of the solutions we’ve come up with to lower the price would be to do a permanent policy for half of the $500,000, so $250,000 policy, which would cut the premium about in half; it would probably be about $3800- $3900, and then do a 20-year policy which will take you to age 80; a 20-year policy for the other $250,000 which would be about $1500. Now you’re looking at about $5300 rather than $7500, and you’ve cut the cost a little over 20%, not quite 25%. It allows you to get that all-important coverage to protect your family.

We’re LifeNet Insurance Solutions, here to help you find the solution for your insurance question. It’s been a pleasure. Hope to speak to you soon.


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