20 Reasons You May Need Life Insurance After 60

Well, let’s think about this. You’ve earned the majority of what you’ll ever earn over the past 40 years. You should have accumulated enough assets to retire and live happily ever after. The opportunity and the ability to add to this are limited by both your age and your health. But the past few years have been an eye opener about how uncertain your financial future may be.

number-20-300x288

Most people think of life insurance only when they want to protect their family and provide a source of replacement income in the event of their death. They don’t think of it as a buffer to replace lost assets due to market volatility—for example, the market crashes and you die before you have the time to rebuild or replace the lost assets.

Yes, I know. Your children are grown and gone. The mortgage is paid off. You have minimal debts. So, why should someone 60 or older consider purchasing permanent life insurance?

Reasons for life insurance after age 60:

  1. Offset loss of retirement income to spouse at death.(Pension max)
  2. Pay costs associated with death
  3. Pay final expenses
  4. Pay estate and inheritance taxes
  5. Pay off debts
  6. Pay income in respect of a decedent taxes on IRAs, 401(k)s etc
  7. Provide for the care of a disabled child, spouse, etc.
  8. Offset loss of key person in a small business
  9. Provide funds to buy out interests of a deceased business partner or co-shareholder
  10. Dividends can be a tax-free source of supplemental retirement income.
  11. Cash surrender values are a source of emergency funds during life.
  12. Cash surrender values can be wholly or partially annuitized to provide additional guaranteed lifetime income.
  13. Any unused funds can be used to provide a gift to grandchildren.
  14. Provide a gift to charity at death or prior if desired.
  15. It adds flexibility to the estate plan.
  16. It allows parents to balance uneven distributions of property or business interests to children.
  17. It allows parents to spend all their money and still leave a legacy to their children or grandchildren.
  18. It is creditor proof in most states.
  19. It can be designed to provide an “inevitable gain,” no matter when one dies.
  20. It can collateralize loans. As people live longer, they tend to take on more debt or debt that has a longer amortization (just look at all the big houses being built by people who consist of a family of two post-65 adults!)

Review your personal situation. You may find there are more reasons to own life insurance after age 60 than you think.

Marvin H. Feldman, CLU, ChFC, RFC, President and CEO of Life Happens

by Marvin H. Feldman

Marvin H. Feldman, CLU, ChFC, RFC, is president of the Feldman Financial Group in Palm Harbor, Fla., and president and CEO of Life Happens. He is a 41-year Million Dollar Round Table member and was the 2002 president. He is a 33-year member of the MDRT Top of the Table and a past Top of the Table chairman. He also is the recipient of the 2011 John Newton Russell award, the highest honor bestowed on an individual by the insurance industry.

  1. Tremendous article. As someone involved in working primarily with the senior market, I can say this is a must read.

  2. Adding to the list:

    The death benefit can be used by surviving spouse to create income to offset the lost (spouse) Social Security income.

    If surviving spouse is still working, the death benefit can allow time (pay bills) taken off from work to properly grieve.

    Whatever killed the insured (spouse) may not have killed the surviving spouse but caused sever injuries (i.e.: joint car accident, etc.). Injuries that will cost money, and possibly time off work, to recover from. The death benefit can alleviant that concern.

    The SPPO rider (an NYL rider) can help the surviving spouse leave a larger survivor benefit and/or be used continuation of financial/taxation strategies (i.e. Tax deferral, Tax free access, etc.)

    Walter Wrightson (Alaska)

  3. This is all great information. Since I’m still learning more and more about Life Insurance, this helps further my understanding of what families can do to help increase their wealth and further protect their assets.

  4. Why does a person want or require life insurance over 60 years of age? The kids are expanded. The house is almost paid off. Retirement is just all over the corner. It’s most likely too costly anyway.

    People through the age of 60 are the biggest group of people buying it today.

    There’s no query the cost will be higher at or after age 60 than it was years ago. However, supposing you’re in relatively good health, there are probably some cost-effective options.

    My Life Insurance For Elderly Team

    1. There are a lot of reasons someone would want, or could benefit, from life insurance after age 60.
      The variety of benefits depend on:
      The type of life insurance they have.
      The age when they put the insurance policy in place.
      The “rating” they have on the policy.
      Who it is they wish to benefit from the policy.
      The size of their estate.
      The state they live (or will retire) in.
      Etc, etc.
      It would take a while to list things out here. However, if this is something important to you or to someone you are looking to help, feel free to give me a call.
      Walter Wrightson
      907-257-6495

  5. I WOULD LIKE TO PURCHASE MORE LIFE INSURNCE ME AND MY HUSBAND OR 62 YRS OLD I WILL BE WORKING ONLY TWO MORE YEARS MY HUSBAND 3 MORE YRS WE BOTH HAVE TERM INSURANCE ON OUR JOBS ABOUT 30,000 EACH. I WOULD LIKE TO DROP THAT INSURANCE AND GET PERMANENT LIFE INSURANCE . I PAY ABOUT $60 PER MONTH , I AM NOT SURE HOW MUCH MY HUSBAND PAY , I ALSO PURCHASED SOME FINAL EXPENSE INSURANCE WHICH I WILL BE CANCELLING TODAY JUST PURCHASED IT LAST WEEK $92 PER MONTH $15, 000 ON ME $10, 000 ON MY HUSBAND HE IS A SMOKER AND HAS HIGH CHOLESTROL HE IS MAINTAINING IT WITH MEDS, I HAVE HBP AND HC, MAINTAINING IT WITH MEDS, I AM NOT A SMOKER NOR DRINKER. I DO EXERCISE LOVING IT BLOOD PRSSURE AND EVERYTHING ELSE IS COMING DOWN, I JUST NEED SOME PERMANENT INSURANCE. THANKS FOR ANY INFO YOU MAY BE ABLE TO OFFER.

  6. Dear Mrs. Gilbert,

    First try:

    https://www.massmutual.com/insurance/life-insurance/guaranteed-acceptance-life

    (MassMutual Guaranteed Acceptance Life Insurance).

    They are a top quality, currently A.M. Best A++ rated company that lowers the premium by allowing direct purchase by the consumer at the above website without paying a broker.

    The only way to (potentially) achieve lower rates would be with medical underwriting, for which you would need the help of a professional advisor.

    Sincerely,
    Robert Park, M.D.
    206.395.9501

Leave a Comment

Start planning your LIFE today Close