The following life insurance rates by age charts are for someone in their 60s in excellent health, with no other risk factors.
The life insurance quotes provided are from top rated life insurance companies rated by AM Best with an A- rating and higher.
- Term Life Insurance Rates in Your 60s
- Whole Life Insurance Rates in Your 60s
- Term Life vs Whole Life Insurance Quotes
- Why Buy Life Insurance in Your 60s
- Top 3 Reasons to Term Life Is Better
- Top 5 Reasons to Consider Whole Life
Term Life Insurance Rates in Your 60s
Whole Life Insurance Rates in Your 60s
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 20 | $83 | $151 | $293 | $580 |
| 25 | $92 | $178 | $348 | $689 |
| 30 | $105 | $216 | $422 | $839 |
| 35 | $121 | $267 | $522 | $1038 |
| 40 | $141 | $326 | $639 | $1273 |
| 45 | $173 | $401 | $789 | $1571 |
| 50 | $214 | $499 | $982 | $1959 |
| 55 | $270 | $629 | $1239 | $2473 |
| 60 | $324 | $802 | $1582 | $3158 |
| Age | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|
| 20 | $56 | $132 | $255 | $504 |
| 25 | $66 | $156 | $304 | $602 |
| 30 | $79 | $188 | $368 | $729 |
| 35 | $96 | $230 | $450 | $894 |
| 40 | $115 | $278 | $544 | $1081 |
| 45 | $143 | $350 | $685 | $1364 |
| 50 | $175 | $429 | $843 | $1681 |
| 55 | $223 | $549 | $1082 | $2158 |
| 60 | $280 | $700 | $1381 | $2756 |
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Term Life vs Whole Life Insurance Rates
Why Buy Life Insurance In Your 60s?
In this article we wanted to take a moment and discuss a few situations where someone in their 60s might be better served by purchasing a whole life insurance policy rather than a term policy.
Now our intention hereโฆ
Is not to try and โsellโ you on the idea of purchasing a whole life insurance policy or try to and convince you that there is something wrong with purchasing a term life insurance policy.
Our goal in this article is demonstrate how silly it is for some insurance brokerages to simply refuse to give their clients the opportunity to decide if a whole life insurance policy might be โrightโ for them.
And the best wayโฆ
Weโve found to show how a whole life insurance policy might be more beneficial to a client than a term life insurance policy would be is by offering a few concrete examples.
Butโฆ
Before we dive right into a few of these โsituationsโ where whole life is better than term, we wanted to first address some of the major concerns of theโฆ
โWhole Life Insurance Critic Communityโ
3 Reasons Why Most Agents Believe Term Life Insurance is BETTER than Whole Life insurance
1. Your insurance needs have changed.
As a general rule of thumb, what youโre generally going to find is that on average, a whole life insurance policy will usually cost about 5 to 10 times more than a traditional term life insurance policy.
And sinceโฆ
In the mind of most life insurance agents, both term life insurance and whole life insurance offer the same thing, mainly a death benefit in the even that you die while the policy is active, it doesnโt make sense to pay 5 to 10 times more for whole life than it would for termโฆ
โDoes it?โ
The only problem isโฆ
That with this argument there are two main issues that are being totally ignored.
First, this argument assumes that everyone will die during the โtermโ period that the individual purchases, and second, it assumes that there’s no additional benefits to owning whole life insurance vs term life insurance policy which is something that we will address specially later on in this article.
You seeโฆ
If you purchase a 20 year convertible term life insurance policy and die three days after that term insurance policy expires, we can assure you that your family might have a different opinion on the โvalueโ of a term vs a whole life policy.
But thatโs not allโฆ
Because as youโll soon find out, there are a lot of โtechnicalโ advantages one will have access to by owning a cash value whole life policy that simply wonโt be available to folks who simply own a term policy.
2. Your insurance needs have changed (Part deux).
A second argument that many life insurance agents like to make is that as one ages, their insurance needs will likely lessen over time.
For exampleโฆ
Chances are if someone in their 30s decides to purchase a life insurance policy, it may be because they just:
- Got married,
- Had a child,
- Purchased as home,
- Etc
These are all quite common reasons why someone might want to purchase a life insurance policy in their 30s.ย They are also common reasons which one can naturally assume will diminish over time.
For exampleโฆ
At 60 years old, one might hope that their children have become independent and moved out of the home, that home mortgage you started paying on 30 years ago will finally get paid off, and as one nears retirement age, dying early usually won’t have the same financial impact on your spouse as it would if you died in 40s or 50s.
Soโฆ
In โtheory,โ we would be inclined to agree with this argument.ย However, there are certain situations where this might not be the case.
For example, itโs quite possible that you may have a special needs child who may not be able to care for themselves regardless of how old they get.
Orโฆ
A growing trend that we are seeing nowadays is that grandparents are having to take on more of a primary โparenting roleโ of their grandchildren simply because their own children arenโt able to or willing to meet their responsibilities (yes, it is sad).
In cases like theseโฆ
The argument that a personโs insurance needs will likely decrease as one ages doesnโt really hold true.ย This is why we feel itโs never a really good idea to โassumeโ what kind of life insurance for a 60 year old is going to be the right one for any client.
3. Life insurance agent greed.
Because whole life insurance rates are higher, they tend to have larger commission payment for agents than term life insurance policies.
This has historically led some โunscrupulousโ agents to encourage their clients to purchase whole life insurance policies instead of term, even when term policy might be the better option.
Butโฆ
Like the saying goesโฆ
โDonโt throw the baby out in the bath waterโ
One shouldnโt automatically assume that whole life isnโt right for them simply because dishonest agents have sold these policies to the wrong people in the past.ย
This is why youโll want to be very careful in deciding โwhoโ you decide to work with when buying life insurance at age 60 and why we here at I&E always like to be very โtransparentโ from the get go!
Okโฆ
So now that weโve discussed some of the main arguments against purchasing whole life insurance in your 60s, letโs now take a moment and discuss why some folks in their 60s may actually WANT to purchase a whole life policy.
Top 5 Reasons to Buy Whole Life Insurance in Your 60s
1. Your Insurance Needs Have Changed.
Here at I&E, weโd probably estimate that about 30 to 40% of all our clients in their 60s end up contacting us because their existing term life insurance policy is about to expire and now theyโre wondering what they should do.
These folks typicallyโฆ
- Just learned that once their term is over-thatโs it, theyโre no longer insured, or
- They just learned what it would cost to keep their term policy in place for one more year and they’re โINSULTEDโ by the price that theyโve been quoted!
The good newsโฆ
It that for a lot of these folks, the idea of โneedingโ a $250,000 or $500,000 life insurance policy simply isnโt necessary any more, which is why it may make sense to โself-insure.”
Orโฆ
In some cases, folks will want to transition from a large term insurance policy to a smaller whole life policy which then can use so that ultimately all of there final expenses or burial costs might be covered.
In either caseโฆ
Here is where we see that as one gets older, their insurance needs do change and as a result, owning a smaller whole life policy serves a valuable role in fulfilling a clientโs needs.
2. Your Insurance Needs Have Changed (Part deux).
In our previous example, we describe a client in their 60s who calls us because their term life insurance is about to expire and fortunately for them, they donโt really have a need for the amount of coverage that it was offering.
For themโฆ
Their โinsurance needsโ did decline over the years, and the term policy properly insured them for the amount of coverage that they needed over the time period that they were at the highest risk.
โMission Accomplished!โ
The problem isโฆ
This is not always the case.ย You see for a lot of folks, when they decided to purchase their original 30 year term policy back in their 30s, that policy made a lot of sense for them at the time.ย Unfortunately, as things changed for them, the 30 year term policy became less and less ideal.
You seeโฆ
For some, there are situations where over time, oneโs insurance needs donโt diminish.ย In some situations, they may actually increase!
Now, this could be for a variety of issues, but probably the most common two that we see here at I&E is when where either dealing with a client who has a special needs child who will never be able to support themselves financially or when a client is having to take on the primary parenting role of one of their grandchildren.
In cases like theseโฆ
Folks in their 60s will often want to know what whole life insurance options they may have so that upon their death, there will be a life insurance policy in place.
3. Just Bury Me Please.
Another increasing trend that weโre seeing is for folks to what to purchase a small final expense whole life insurance policy on either themselves or a family member, so that in the event of their death, the surviving family members wonโt need to worry about how theyโre going to pay for their burial or final expense.
In cases like theseโฆ
Clients are worried about covering the cost of a mortgage, financing a childโs education or replacing potential lost wages.
Rather, all they’re really concerned about is being sure that when the they pass, coverage will be in place.
4. What Do You Mean I Canโt Qualify?
Not being able to qualify for traditional life insurance is another reason why someone may choose to purchase a smaller whole life insurance policy, because often the life insurance underwriting requirements to qualify for either a simplified issue whole life insurance policy, or a guaranteed issue insurance policy, can be a lot simpler than it would be to qualify for fully underwritten life insurance policy.
In cases like theseโฆ
Individuals may have already been denied coverage by one or two insurance carriers already and are now just looking for any option that they can get.
The good news isโฆ
There are a lot of smaller whole life policies out there, many of which we here at I&E do offer, so if you find yourself in this situation, youโll definitely want to give us a call.
5. Weโre not investing, weโre saving wisely.
The last reason why we wanted to talk about with regards to why some folks shopping for life insurance in their 60s might want to consider purchasing whole life is because these types of life insurance policies can be used for so much more than simply providing your loved one with a death benefit.
And noโฆ
Weโre not talking about using a whole life insurance policy as an โinvestmentโ because like many financial advisors will tell you, purchasing a whole life insurance policy as an investment isnโt a great idea.
What weโre talking aboutโฆ
Is purchasing a whole life insurance policy as a โsavingsโ vehicle can not only earn you more of a return than typical bank savings accounts, it can also provide one with:
- Tax free loans,
- Tax deferred guaranteed cash value growth,
- Improved cash flow and liquidity,
- Guaranteed death benefit
Benefits that simply arenโt available with term life insurance.
So now, weโre left with the burning question ofโฆ
โWill buying a whole life insurance policy be the โrightโ move for you?โ
Who knows?
It might be, but itโs also quite possible a term insurance policy is simply the better choice.
We just wonโt know until we understand exactly what youโre hoping to accomplish by purchasing your life insurance policy.
The only thingโฆ
We know for sure is that we here at I&E arenโt going to make any โassumptionsโ about which type of life insurance might be right for you, and weโre going to do our very best to help you find and qualify for the best life insurance at age 60 for you, based on your unique needs and goals.
So, what are you waiting for?ย Give us a call today and see what we can do for you!
