After 60, life insurance is less about replacing decades of income and more about specific goals: protecting a spouse's retirement income, covering final expenses or leaving a set amount to family.
Start with the goal
- Income protection for a spouse: for example if a pension or Social Security benefit would drop at your death.
- Debts: a remaining mortgage or loan.
- Final expenses: funeral and end-of-life costs.
- Legacy or estate costs: a planned gift to children or charity, or estate settlement costs.
Options to compare
- Term life: still available at many ages, usually for shorter terms like 10 or 15 years.
- Guaranteed universal life: a type of permanent coverage designed to last to an advanced age at a fixed premium, with little cash value.
- Whole life: permanent coverage with cash value, at a higher cost.
- Final expense (burial) insurance: smaller policies, often with simplified health questions.
Simplified vs. fully underwritten
Policies with no exam or only a few health questions are convenient but usually cost more per dollar of coverage. Some have a waiting period before the full benefit is paid. If you're in reasonable health, a fully underwritten policy may cost less.
Before you buy
- Check whether your savings could already cover the need.
- Compare premiums against simply setting the money aside yourself.
- Make sure you can afford the premium on a retirement budget, since a lapsed policy pays nothing.
General information only, not insurance advice and not a recommendation of any insurer or policy. Coverage rules and prices vary by state and by insurer, so confirm details with a licensed agent or your state insurance department.