Life insurance for 60 year olds

What life insurance does at 60

At 60, life insurance usually protects a spouse's retirement income, a remaining mortgage, or final expenses. If one spouse's pension or Social Security would shrink after a death, a policy can fill the gap.

Some people at 60 no longer need much coverage because children are grown and savings are in place. Others want money set aside for a funeral or to leave a gift. Decide which of these you are solving before choosing a policy.

Check whether existing coverage is ending. Many people bought 20 or 30-year policies in their 30s or 40s that run out in their 60s. Replacing coverage costs more now, so decide early whether you still need it.

Which term lengths you can still buy

The longest terms are mostly closed by 60, but 10, 15 and often 20-year terms remain. American Amicable's Term Made Simple offers 20 years through 65, 15 years through 70 and 10 years through 75. Americo's Term 125 offers 20 years through 70 and 15 years through 75.

A 15-year term bought at 60 runs to 75, which often covers the last years of a mortgage. Policygenius notes term rates rise an average of 4.5% to 9% for each year older you are when you apply. Compare a 10-year option if you only need short coverage.

Watch the coverage caps, not just the term lengths. A product may allow a 20-year term at 64 but limit the amount, as Mutual of Omaha does above age 60.

No-exam coverage after 60

No-exam term is still available at 60, but the maximums are lower. Mutual of Omaha's Term Life Express allows up to $250,000 through age 60 and $150,000 from 61 to 75. American Amicable's Term Made Simple lists up to $500,000.

Larger amounts usually need full underwriting with an exam. Transamerica's Trendsetter Super accepts applicants up to age 80 with full or non-medical underwriting depending on age and amount. See no-exam life insurance for more.

Health factors that matter in your 60s

In your 60s, insurers look closely at heart health, diabetes control, cancer history, lung conditions and recent hospital stays. Regular checkups help, because they show a condition is being managed.

Policygenius reports that most insurers want older applicants to have a primary care doctor, especially for term. If you have a serious condition, final expense products are designed for more health issues. See our guides for heart disease, diabetes and COPD.

Term vs final expense whole life at 60

Term gives more coverage per dollar but ends; final expense whole life lasts for life but is small. Mutual of Omaha's Living Promise level plan covers $2,000 to $50,000 at ages 45 to 85, with no medical exam. Premiums never increase and benefits never decrease.

If health questions are a problem, a graded plan may still accept you. Living Promise's graded plan pays premiums plus 10% for natural-cause deaths in the first two years, then the full benefit. Learn more about waiting periods and final expense over 60.

You do not have to choose only one. Some people keep term for the mortgage and add a small final expense policy that lasts after the term ends.

What happens when a term policy ends

Most term policies can renew after the level period, but premiums jump. Transamerica says Trendsetter Super premiums increase every year after the level term. Mutual of Omaha's Term Life Express renews annually to age 100 without new health questions.

If you think you will need coverage past 75, compare conversion options or a permanent policy now. Mutual of Omaha allows Term Life Express conversion until the level term ends or the anniversary after age 70, whichever is first.

Final expense costs to plan for

If your main goal is a funeral, size the policy to real costs. The NFDA's 2023 study put the median funeral with viewing and burial at $8,300 and with cremation at $6,280. Those figures leave out cemetery plots, markers, flowers and obituaries.

Final bills, medical costs and travel for family can add more. Our final expense cost guide shows estimates by age.