Regardless of age, here are the things to consider when buying life insurance. If you died today how would your loved ones be affected? Do they depend on your income? How much debt would be left i.e. mortgage, car loans, credit cards, etc.? Last do they have the money liquid to cover final expenses, i.e. taxes, funeral, etc.?
Once you answer those questions, how many years will it be before they do not need your income? When is debt paid in full and money set aside for final expense?
For example, you need ten times your income in order for them to invest the money to replace your income. Add to that the total debt number and how the years until payoff. If you need $500,000 to complete that and it will take you 15 years or age 77 when all is paid off, then purchase $500,000 15 year term policy to cover this scenario.
$250,000 of 20 year Term life insurance for a very healthy 62 year old male will run between $150 to $250 per month. At age 62, selecting a shorter term will cut the rate down drastically. However, to get a term length beyond 30 year Term is very rare at age 62. To get longer coverage, you most likely have to take Universal Life with a guarantee to not lapse before a certain age.
Unless you absolutely know that you will only need your policy for a limited number of years, taking the Universal Life option is a much safer way to go. If you were to buy a 20 year Term policy, get cancer at age 81, and then live to age 85, you most likely will be unable to afford the annually renewable premiums AND be unable to qualify for the amount of life insurance you want.
If you can qualify for Preferred rates at age 62, chances are you are going to live a long time. It is easier to lock your rate in for a long time now, than it will be to get a new, affordable policy when the term runs out. So don't cheat yourself; get a policy that will still be in effect when you die.
President, Lane Independent Agency, Southern California
If you are 62 and in good health, with no chronic diseases and no significant medications, or restrictions, you should be able to get term life insurance. The rate will depend on the amount of coverage you want in dollars and the length of time it want that coverage to remain at a level premium. The longer the period, or the coverage, the higher the premium will be. If you want the longest, you should be able to get coverage to age 80, or perhaps 82 with some companies. You should also be able to get coverage for $250k, or 500K with 1M being not likely. You probably will find a policy you are happy with for around $250 a month if your health is good. Thank you. GARY LANE.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
If you are in California and are in great health your $250,000 policy would cost about $80 a month for 10 year term. 20 yr. term would be almost twice as high. A look at the mortality tables will show you that the number of people that die is increasing rapidly as you age. If you need permanent insurance, you might qualify for a policy for around $500 per month.
That is a great question! I'd be very hesitant to quote you a price, because I know nothing about your health situation, your gender, your desired amount of coverage, or whether you smoke. The price can vary from relatively inexpensive to very expensive based upon your answers. I am very careful about suggesting term policies for folks your age, as it is likely that you will throw that money away, when it might have been better spent. If you are in good health, you will outlive it, and then have no coverage, and possibly be unable to get another policy, either because of new health issues, or your age. If you are in terrible health, you won't qualify, or it will be very expensive either way. I'd sure like to have a better idea of what you are thinking, if you would like to contact me, I'll clear up time to speak with you about it. Thanks for asking!
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Once you answer those questions, how many years will it be before they do not need your income? When is debt paid in full and money set aside for final expense?
For example, you need ten times your income in order for them to invest the money to replace your income. Add to that the total debt number and how the years until payoff. If you need $500,000 to complete that and it will take you 15 years or age 77 when all is paid off, then purchase $500,000 15 year term policy to cover this scenario.
Unless you absolutely know that you will only need your policy for a limited number of years, taking the Universal Life option is a much safer way to go. If you were to buy a 20 year Term policy, get cancer at age 81, and then live to age 85, you most likely will be unable to afford the annually renewable premiums AND be unable to qualify for the amount of life insurance you want.
If you can qualify for Preferred rates at age 62, chances are you are going to live a long time. It is easier to lock your rate in for a long time now, than it will be to get a new, affordable policy when the term runs out. So don't cheat yourself; get a policy that will still be in effect when you die.