Many people ask what type of life insurance should I get at age 60 as retirement gets closer. The type of policy often depends on how long coverage is needed and what the coverage is meant to pay for. At this age, life insurance is usually used for spouse protection, debt payoff, or final expenses.
If you are new to life insurance and retirement planning, you can read more beginner guides here: https://lifeincomepath.com/blog
Understanding the different types of life insurance can help you understand what people often consider at this age.
TERM LIFE INSURANCE AT AGE 60
Term life insurance provides coverage for a specific number of years. Common term lengths include 10, 15, or 20 years.
Some people look at term life insurance at age 60 if they:
Still have a mortgage
Plan to retire soon
Want coverage for a certain number of years
Want coverage during working years
Term life insurance is designed to cover a specific time period.
PERMANENT LIFE INSURANCE
Permanent life insurance is designed to last longer than term insurance. It does not end after a certain number of years as long as the policy stays active.
Some people look at permanent life insurance if they:
Want coverage for final expenses
Want to leave money to family
Want coverage that lasts longer
Want coverage later in life
Permanent life insurance is often used for long-term coverage needs.
FINAL EXPENSE LIFE INSURANCE
Final expense life insurance is usually smaller coverage designed to cover funeral costs, burial costs, medical bills, and small debts.
Some people at age 60 choose final expense coverage if:
They do not need a large policy
They only want to cover final expenses
They want to make sure family members do not pay funeral costs
This type of policy is often smaller than income replacement life insurance.
HOW PEOPLE CHOOSE BETWEEN TYPES
People often choose the type of life insurance based on the purpose of the policy.
If the goal is income protection for a spouse → some people look at term life.
If the goal is final expenses → some people look at permanent or final expense coverage.
If the goal is to leave money to family → some people look at longer-lasting coverage.
The type of policy usually matches the purpose of the coverage.
SIMPLE EXAMPLE
Here is a simple example.
Person A is 60 and still has a mortgage and plans to retire at 67. They may want coverage for those working years.
Person B is 60, retired, and only wants to cover funeral costs. They may want a smaller policy for final expenses.
The type of life insurance often depends on the financial situation and the reason for the coverage.
TERM VS PERMANENT AT AGE 60
Here is a simple comparison:
Term life insurance:
Coverage for a specific number of years.
Permanent life insurance:
Coverage that can last longer.
The main difference is how long the coverage lasts.
WHEN SOME PEOPLE CHOOSE TERM LIFE AT 60
Some people choose term life insurance at 60 if:
They still have a mortgage
They still have debts
Their spouse depends on income
They want coverage until retirement
WHEN SOME PEOPLE CHOOSE PERMANENT LIFE INSURANCE AT 60
Some people choose permanent life insurance at 60 if:
They want final expenses covered
They want to leave money to family
They want coverage later in life
They do not want coverage to expire after a certain number of years
CHECKLIST TO HELP DECIDE
Here is a simple checklist:
How long do I need coverage
What do I want the policy to pay for
Do I still have a mortgage
Do I want to cover final expenses
Do I want to leave money to family
These questions help people think about which type of life insurance they may need.
FINAL THOUGHTS
The answer to what type of life insurance should I get at age 60 depends on how long coverage is needed and what the policy is meant to pay for. Some people look for coverage for a specific number of years, and others look for coverage that lasts longer.
Understanding the purpose of the life insurance policy can help determine which type of coverage may be appropriate.
If you want to speak with a licensed agent about life insurance options at age 60, you can contact one here: https://lifeincomepath.com/contact
This article is for educational purposes only and is not financial, tax, or legal advice.
