By the age of sixty-three, you probably have started to consider how important it is to get things prepared for the well being of your family in the event that you are no longer able to take care of them.
One of the best ways to protect your family after you pass away is to have a quality life insurance policy. At this age, a lot of applicants think that they can’t get a life insurance policy, or they assume that they won’t be able to afford the monthly premiums because of their age, neither of these are true.
Once a lot of Americans retire, typically they stop paying their life insurance policy and let it expire or don’t renew their plan, this is a terrible choice. If something awful happened, would you leave behind a mountain of unpaid debts to your family? If you still have a mortgage payment, car loans, or credit card bills, your life insurance policy can help ease the financial burden.
Hopefully, at age sixty-three you are still in good health and can obtain a quality life insurance at the cheapest rate. Scouring through your options is the best bet as there are numerous options for those that are age sixty-three.
What are Your Life Insurance Options at Age 63?
Despite what one may believe, there are multiple options available for those that are age sixty three. The most popular option is term insurance coverage, but you might have the option to buy permanent coverage as well.
Term life insurance is that it only lasts for a term that is determined at the point of purchase. This is a characteristic that is unique to term life insurance. In addition to this characteristic, it is also known for its affordability compared to many other types of insurance.
Permanent life insurance is the option main option, and it’s very different. They are effective until the day you reach their maximum age limit. Each company has a different age limit, but most are around 90 or 95. They never expire and a part of the premiums get put into a “cash value” bucket. This money can add to the payout or you can borrow the money.
Rates for a 63 Year Old
We can’t tell you exactly how much you’ll pay for your plan, because we don’t know your situation, but we can give you an idea of rates for over 60 life insurance.
Let’s say you want to buy $250,000 worth of coverage for a 20 year term insurance plan. A 63 year-old-man is going to spend close to $4,000 every year for their plan.
If you want to get a smaller plan of $50,000, your premiums will jump down to around $1,200 every year. Obviously, these rates are going to change based on your health.
Before you pick a policy, it’s important that you get quotes from several different companies. Because each company is different, they have different rating systems that will translate into different monthly rates. Some companies view older applicants more favorably than other companies
Here are some sample quotes for a $250,000 policy:
| Sex | 10 Year | 20 Year | 30 Year |
|---|---|---|---|
| Male | $86.41/month | $115.06/month | $168.66/month |
| Female | $56.12/month | $73.94/month | $107.14 |
Your Rates and Your Health
At age sixty-three, your health could still be good, or it could be going downhill. There is the likelihood that will end up paying slightly higher premiums for your insurance, which is why its a better idea to begin shopping for life insurance at a younger age, even looking for life insurance at 50 is better!
There are some companies that specialize in insuring applicants with diabetes, cardiovascular conditions, and much more. It’s important that you find the best company to fit your needs. You could spend dozens of hours researching different insurance companies to find the one that fits your needs, or we can do all of the research for you.
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Getting the best rates
As we mentioned earlier, shopping around with different companies is a great way to get lower life insurance rates, but it’s not the only way. Even at sixty-three, there are still several ways that you can ensure that you save money every month.
The first is to kick your bad habits, especially smoking. If you’re listed as a smoker on your life insurance application, it will cause your premiums to skyrocket. Using tobacco is a guaranteed way to have your rates double or triple. If you’re a smoker, spend a couple months weaning yourself off. Your lungs and wallet will thank you every month. If you don’t want to quit the cigarettes, it’s important that you find a company that gives lower rates to smokers (you’ll still be paying much more than a non-smoker).
Focusing on your health will not only help your waistline and energy levels, but it can also save you money on your life insurance plan. Being overweight, having high blood pressure, or high cholesterol is not only bad for your overall health, but also bad for your bank account. Regular exercise and a healthy diet can get you in a healthy weight range and reduce your risk of having severe health complications later in life, the less risk that you pose to the insurance company, the less they will charge you.
How large of a policy do you need at 63?
Because you are in a unique stage of life, either retired or soon to be retired, there are a lot of questions about how large of a life insurance policy do you need? This answer to this question is going to depend on three different factors, your debt, your annual salary, and your legacy.
At 63, you may not have much debt anymore. You might have paid off your mortgage and other major debts. If so, then you can buy a smaller policy.
The next question that you have to ask yourself is, “does anyone rely on my salary?” Does your spouse or children still rely on your annual income to survive? If so, then you should always have a policy that would give them the funds they need.
Lastly, what kind of legacy do you want to leave behind and do you have enough saved up to leave it? One of the most common things that people forget is that Uncle Sam is going to take a large portion of that money you want to leave behind for your kids. A life insurance policy is a great way to keep your savings from being eaten alive by taxes.
Bottom Line
If you want to save time and money (who doesn’t), we recommend teaming up with an independent agent. This will save you countless time and money in the long run, especially if you are not well versed in the types of life insurance.
Source: goodfinancialcents.com