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Understanding Life Insurance for 60 Year Olds

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Life insurance is a long-term investment that financially secures your family. With this plan, you can financially protect them in the long run by ensuring the availability of sufficient money when they require it in unfortunate circumstances.

In the UAE, a fast-growing and changing country, you can find all sorts of life insurance plans. Whether you are from another country and residing in the UAE or an Emirati, you will find numerous life insurance plans for coverage related to death, critical illnesses, situations where one is unable to work due to disabilities, and more.

Is It Necessary to Have Life Insurance for 60 Year Olds? 

As mentioned above, having life insurance is crucial for everyone - this holds true for seniors over the age of 60 years as well. After the unfortunate demise of the insured, dependents, such as a partner or elderly parents must be able to keep themselves financially protected. This is where life insurance steps in, as it ensures that the insured individual’s loved ones (parents, children, and spouse) are able to continue their lives without affecting their present lifestyles after the untimely demise of the respective insured.

Primary Benefits of Having Life Insurance for Adults Over 60 Years

When it comes to the advantages of life insurance benefits, here’s what you can get -

1.) Financial Protection

Life insurance is like a safety net for your family if something happens to you. It can help replace the money that the policyholder would have earned, pay off any debts that they have, cover the cost of their funeral, and make sure that their family has enough money to keep up with their everyday expenses.

2.) A Source of Income/ Income Replacement 

For policyholders who are the sole earners of their families, life insurance can bring peace of mind by offering financial security to their families. It can serve as a primary income source after the insured individual’s untimely demise. With this type of insurance, one can ensure that the lifestyle of the dependents remains unaffected even after their demise.

3.) Retirement Savings

Life insurance policies can certainly be considered a part of your long-term savings. It is because this type of insurance, more than simply providing death benefits, can serve to provide retirement savings for the insured and their family members. For instance, permanent life insurance accumulates cash value over time, which further supports you during the retirement period.

4.) Economical Coverage

Life insurance plans are available with different inclusions, exclusions, and riders/ add-ons. While the premiums for these plans can be higher if you are getting a plan at the age of 60 (compared to young adults), it’s worth noting that they are still pretty cost-effective considering the coverage that they provide.

To get the best life insurance at affordable rates, experts recommend comparing the top plans from different providers. With policybazaarinsurance.ae, you can check and compare the top life insurance policies in one place and easily find the best plan within your budget that aligns with your requirements as well.

5.) Repayment of Debt

Most of us have certain financial obligations to fulfil in our lives. However, have you ever wondered what would happen to the existing loans and debts after the unfortunate demise of the policyholder? How would these loans be repaid in the absence of the insured? 

Life insurance certainly comes in handy in such a scenario. With such a policy, dependents of the insured individual can receive periodic payments or a lump sum amount that can help them fulfil all such obligations.

How to Choose Life Insurance for Seniors Over 60? 

Considering its importance, selecting the right life insurance plan for yourself is crucial. You must take several points into account before buying an insurance policy. Mentioned below are the points explaining how to choose the best life insurance for parents over 60 -

1.) Examine Your Financial Requirements

When choosing a life insurance plan, it’s quite important to know what you want to achieve financially. By understanding your goals, you can find the right insurance plan that meets your specific needs.

Whether you want to make sure that your family is financially secure, pay off debts, or save for your children's education, your goals will help determine how much coverage you need and which type of policy is the best for you. By being aware of your financial goals, you can extensively compare different options such as term, whole life, universal life insurance, and more and pick the plan that matches your requirements at affordable rates.

2.) Take Your Dependents into Consideration

Knowing how many people depend on you is important when picking a life insurance plan. The number of dependents that you have plays a key role in determining how much coverage you need to take care of their requirements if something happens to you. For instance, if you have several dependents such as a spouse, kids, or elderly parents, you would need higher coverage to make sure that they're financially covered in the future.

Another factor to consider, besides the number of dependents, is their ages and corresponding requirements. For instance, if your children plan to study abroad, you may want to get a life insurance plan with high coverage (considering the high tuition fees) so that their goal is not left unfulfilled due to a lack of funds under any unfortunate circumstance.

3.) Look for the Best Insurance Providers

When choosing an insurance plan, it's important to look at different companies. This way, you can have more choices and find the best coverage at affordable prices.

Different insurance companies provide different policies, benefits, and more. By checking out different providers, you can compare what they offer, read reviews from customers, and make smart decisions. This also helps you find any discounts, extra options, or changes that you can make to the policy.

4.) Shortlist and Compare the Best Plans

Once you find the top providers offering life insurance, the next step is to shortlist and compare plans to get the desired one. By comparing multiple plans altogether, you can find the best life insurance for parents over 60.

To start comparing the top plans, continue on our website and head to the ‘life insurance’ section.

5.) Opt for a Comprehensive Plan

Always look for life insurance plans that offer maximum coverage, as these plans come with a wide range of benefits beyond just death benefits. Make sure to check the riders and add-ons as well, as you can secure coverage against critical illnesses, disability, and more with these riders.

Another benefit of opting for a comprehensive plan is that you can build a cash value element for dependents during emergencies or retirement income.

Which Factors Affect Life Insurance Premiums for Seniors Over 60?

Discussed below are the key factors that have a considerable impact on the premiums of a life insurance policy for people aged over 60 years:

  • Age - It is always recommended to buy life insurance at a younger age. A thumb rule in this regard is that you should try to get a policy as soon as you start earning money. This is because as you get older, the cost of premiums tends to increase. As you age, there's a higher chance of developing health problems. To compensate for this higher risk, insurance companies generally charge higher premiums.
  • Employment Status - The type of work that you are involved in is an important factor in determining the cost of your life insurance. If your job involves risks such as mining or working in a hazardous industry, you are more likely to have higher premiums.
  • Current Health Condition - Your health condition plays a big role in deciding how much you have to pay for life insurance. Insurance companies charge higher premiums for people who drink and smoke regularly. Additionally, if you have certain diseases like heart problems or diabetes, your premium will also be higher.
  • Policy Tenure - The period for which you have taken a life insurance policy affects how much you pay for it. Usually, if you have the policy for a longer time, the price is higher. That's because the insurance company is providing coverage for a longer time. On the other hand, if you have a policy for a shorter period, the price is usually lower. With that said, you should also consider your financial goals and requirements of dependents while deciding on tenure instead of simply looking at its equation with premiums.
  • Premium Payment Frequency - How you choose to pay for your life insurance may also affect how much you have to pay overall. Insurance companies usually provide different options for how often you can make payments - once a year, twice a year, every three months, or every month. If you decide to pay more often (every month or every three months), your total payment amount will usually be higher. That's because the insurance company has more administrative costs associated with frequent payments. On the other hand, if you choose to pay once a year or twice a year, your total payment amount might be on the lower side.

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