Life insurance provides cash to your beneficiaries after you die. It’s meant to help replace your income.
But what about buying life insurance if you’re over age 60 or 65? Does it make sense?
In some situations, it can make sense to spend thousands of dollars a year for a life insurance policy after you retire. Some seniors use life insurance as an estate planning tool, a way to pass along inheritance to heirs or to cover debt and funeral expenses.
But for others, purchasing a new policy doesn’t make financial sense.
Here’s what you should consider.
Can You Buy Life Insurance If You’re Over 65?
People over age 65 can buy life insurance, but the premiums will be higher and it may be more difficult to pass medical underwriting requirements.
A specific type of life insurance policy — known as guaranteed issue life — is marketed to seniors as an affordable way to cover final expenses. But these types of policies come with restrictions and drawbacks. (More on that later).
Your health and age are two big factors insurance companies use to determine the cost of your premiums.
The older you are, the more expensive it is to purchase life insurance coverage. Likewise, the more chronic health conditions you have, the less likely you are to get a policy — or pay dearly for it.
Do You Need Life Insurance If You’re Over 65?
Not everyone needs life insurance after they retire. Generally, if no one depends on
