How to choose the right life insurance in your 60s
Retirement changes more than your work schedule - it often changes your financial priorities. While some responsibilities may decrease, others remain. You may still want to help protect your spouse's retirement income, pay off debt, help cover funeral costs and final expenses, or leave money for loved ones.
Choosing life insurance in your 60s is less about age than your financial goals, retirement income, family responsibilities, and how long you may want coverage. Comparing your options can help you make a more informed decision.
Retirement does not necessarily mean you no longer need life insurance. In reality, your needs may simply change. Reviewing your retirement income, savings, debts, and long-term priorities can help you determine whether life insurance continues to fit into your overall goals.
Why life insurance may still matter after 60
Retirement doesn't automatically eliminate the need for life insurance. Depending on your situation, it may help you:
- Help protect a spouse who relies on your retirement income
- Help pay remaining debts, including a mortgage
- Leave money to beneficiaries
- Help cover funeral costs and final expenses
- Support charitable giving goals
For some retirees, substantial savings and limited financial obligations may reduce the need for coverage. Others may decide life insurance continues to provide valuable financial protection.
Key takeaway: Your financial goals, family responsibilities, income, and savings generally matter more than your age when deciding whether life insurance still makes sense.
Who may want to review their coverage?
You may want to evaluate your life insurance if you:
- Have a spouse who depends on your retirement income
- Still have outstanding debt
- Want to leave money for beneficiaries
- Want help covering final expenses
- Have charitable giving goals
If your financial obligations have largely ended and your loved ones would be financially secure without additional coverage, your insurance needs may have changed.
Step 1: Define your goals
Before comparing policies, identify why you want life insurance.
Ask yourself:
Would my spouse have enough retirement income?
Do I still have debts or financial obligations?
Do I want to leave an inheritance?
Your answers will help inform both the amount and type of coverage you may want to consider.
Step 2: Estimate your coverage needs
Rather than relying on a formula, look at your overall financial picture, including:
- Retirement income
- Social Security or pension survivor benefits
- Savings and investments
- Remaining debts
- Final expenses
- Household expenses
- Legacy goals
Coverage needs vary from person to person and may change throughout retirement.
Step 3: Compare your options
Common life insurance choices after age 60 include term life insurance, whole life insurance, and guaranteed acceptance life insurance.
Term life insurance
Term life insurance provides coverage for a selected period. It may be considered when your goals include:
- Helping replace income for a surviving spouse
- Helping pay off remaining debt
- Covering temporary financial obligations
Potential benefits
- Coverage for a defined period
- Often available in higher coverage amounts
- Multiple term lengths
Things to consider
- Coverage generally ends when the selected term expires unless other options are available.
- Renewing later may result in higher premiums.
Whole life insurance
Whole life insurance is a type of permanent life insurance designed to provide lifelong coverage, provided premiums are paid according to the policy terms. Many whole life policies include cash value that builds over time according to the policy provisions. It may be considered when your goals include:
- Lifelong protection
- Leaving money to beneficiaries
- Helping cover final expenses
Potential benefits
- Lifelong coverage
- Predictable premiums for many products
- Cash value feature on many policies
Things to consider
- Premiums are generally higher than comparable term life insurance.
- Cash value growth and availability depend on the policy.
Guaranteed acceptance life insurance
Guaranteed acceptance life insurance may be an option for people who have difficulty qualifying for other types of coverage.
These products generally do not require a medical exam. Acceptance may still be subject to product terms, and coverage details, waiting periods, benefit limitations, and eligibility requirements vary by policy. It may be considered when your goal is primarily helping loved ones cover funeral costs or other final expenses.
Potential benefits
- Simplified application process
- Medical exam generally not required
- Lifelong coverage
Things to consider
- Coverage amounts are often lower than other types of life insurance.
- Some policies include waiting periods before the full death benefit becomes payable.
Step 4: Consider health and eligibility
Eligibility depends on more than age. Insurers may consider factors such as:
- Medical history
- Tobacco use
- Prescription medications
- Lifestyle
- Amount and type of coverage requested
Some products are available without a medical exam. Depending on the policy, acceptance may still depend on your answers to health questions or other underwriting requirements.
Step 5: Review affordability
Before purchasing coverage, consider how premiums fit into your retirement budget.
Ask yourself:
Can I comfortably maintain these premiums?
How will they fit alongside my retirement income and savings?
Will they affect other financial priorities?
Choosing coverage you can maintain over time is often just as important as choosing the amount of coverage.
Comparing life insurance companies
When comparing insurers, consider more than premiums.
Review:
- Types of coverage available
- Eligibility requirements
- Coverage limits
- Premium structure
- Customer service
- Claims experience
- Financial strength ratings from independent rating agencies
Common mistakes to avoid
When evaluating life insurance after 60, try to avoid:
- Assuming retirement automatically eliminates the need for life insurance
- Choosing coverage based only on price
- Purchasing more coverage than your family may need
- Forgetting to review beneficiary designations after major life events
- Failing to revisit your coverage as your financial situation changes
Questions to ask yourself
Before purchasing life insurance, consider:
- Why do I need coverage?
- How much coverage may be appropriate?
- How long will I need it?
- Can I comfortably afford the premiums?
- Do I want temporary or lifelong protection?
- Would my beneficiaries have sufficient financial resources without additional coverage?
Answering these questions can help you compare options more confidently.
Key takeaway
The right life insurance in your 60s depends on your retirement goals, income, family responsibilities, financial obligations, and long-term priorities. Reviewing your current needs and comparing your options can help you determine whether life insurance continues to support your overall retirement goals.
Frequently asked questions
Do retirees still need life insurance?
Some do and some do not. Whether life insurance continues to make sense depends on
factors such as retirement income, savings, debts, beneficiary needs, and long-term
financial goals.
What type of life insurance is best after age 60?
There is no single option that's right for everyone. Term life insurance may fit temporary
needs, while permanent coverage may better suit lifelong goals. Guaranteed acceptance
life insurance may be an option for some applicants depending on their circumstances
and the policy offered.
Can I qualify for life insurance in my 60s?
Many people do. Eligibility depends on age, health, underwriting requirements, lifestyle,
and the amount and type of coverage requested.
Is no medical exam life insurance available after age 60?
Some products are available without a medical exam. Depending on the policy,
acceptance may still depend on answers to health questions or other underwriting
requirements.
This article is provided by New York Life Insurance Company for informational purposes only. This article is not intended to provide tax, legal, financial or accounting advice. Please consult your own professional for advice specific to your circumstances.
