When it comes to securing the future of your family, a life insurance policy is one of the most important investments you can make. A common myth associated with insurance is that it becomes more difficult to find affordable life policy as you grow older. However, this could not be further from the truth. Regardless of what your age is, there’s a myriad of options available in terms of quality insurance.
But this blog post is for people who’re sixty years old or are approaching that milestone. What are the life insurance options you have? Which one should you opt for? Well, let’s find out.
Life Insurance Options for People Over 60
There are basically two options to choose from before you can really set the parameters of purchasing your life insurance policy. They are permanent life insurance and term life insurance. If you don’t have an idea of which one suits you best from the names itself, read on to discover what these two types of life insurance policies entail.
Term Life Insurance
While term life insurance is still available to individuals over 60 years of age, the max duration you can get ranges from 20 to 25 years. If you’re looking for a policy that’s longer than 25 years, you’ve still got a couple of options. However, they’re a bit more complex. Let’s take a look at why you may require a term life insurance policy.
Getting a life insurance policy after 60 is significantly different to getting one at 20 or 30. When you’re in your twenties or thirties, you invest in an insurance policy to protect your newborn child, a first career’s income or your first home. When you’re over sixty, however, the most probable reason of investing in a policy is to protect the things you’ve accumulated or to leave a legacy for your children or your favorite charity.
However, not everyone is free of debt, have their estate all set up and have a guaranteed income by the time in sixty. In fact, we daresay it’s quite a small percentage of people who have everything in order by sixty. If you’re still looking to protect a new mortgage on a primary or the income of your final working years, a term life insurance may be the right choice for you. This is primarily because they have a defined duration, i.e. a mortgage for 10 or 20 years, so you know the time period you’ll need coverage for.
Permanent Life Insurance
If there’s a legacy you’d wish to grant, or assets you need to protect or just want to leverage your money for the purpose of a burial, a term life insurance is probably not the best choice. A permanent life insurance is a good choice for situations where you know you’ll need cash available for something, but don’t if that need will arise two years down the line or thirty.
The most prominent benefit of a permanent life insurance policy is that you can pay a small amount of money over a long period of time and get a lump sum payout when you pass. This amount can be used to pay off debt, cover burial expenses, or simply be passed on to your heir or preferred charity. And, the best part is that it’s completely tax free.