Once you are past the age of 60, do you still need life insurance? Or at this stage of life, has it become just another expense that you're better off cutting from the monthly budget? Obviously, everyone's situation is different, and you should talk to your financial planner before making any decisions, but, here are a few things to consider.
If People Depend On Your Income...
Life insurance is usually meant to replace income to support a family in the event of a breadwinner or caregiver's death. Some women over 60 are still helping to support dependent children, whether that means biological children, stepchildren, or grandchildren living in the same house with you.
If you still have young ones (or adult children with disabilities who cannot live independently) who are depending on your income to pay the bills and provide food and shelter each month, you may want to keep a life insurance policy on yourself (and on your spouse, if you have one). Of course, talk to your financial planner to see if this makes sense for your personal situation.
If You Have Big Financial Goals...
Another reason to keep life insurance after the age of 60 is if you want to help provide money for big financial goals like paying for college for grandchildren. Although depending on your overall financial situation, you might have accumulated enough assets that you can better achieve this goal by leaving money to your children or grandchildren in your will. Talk to a financial planner or estate planning attorney to see which options are best to meet your goals.
If You Are In Ill Health...
One of the less happy reasons for getting life insurance is if your health is suffering and if you fear that you are at risk of dying during the next few years. Women over 60 who are in less than optimal health may struggle to get approved for life insurance. But if you already have a term life insurance policy (a policy that is in effect for a specific period of time - for example, 10 years, 20 years, or 30 years) that is about to expire, you can often convert this term life policy to a whole life policy with no medical exam required. That means that your policy will last as long as you live - but the monthly premiums will likely be much more expensive.
If you're trying to decide between term life and whole life insurance, or trying to decide whether to cash in a whole life policy (which accumulate cash value as long as you own the policy), it might be a good idea to consult with a fee-only insurance adviser.
Disclaimer: Nothing in this article is intended to be financial advice. Please consult your financial advisor before making any decisions about your need for life insurance.
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