When purchasing life insurance, there are many options that can be chosen – from 10 year term life insurance to a lifetime guaranteed permanent policy that will provide death benefit protection throughout the remainder of the policy holder’s life, along with cash value build up.
For many who are in their 60s, 10 year term life insurance is a viable option – and there are several very good reasons for this. One is that this particular coverage could be used as protection for any remaining mortgage balance that an individual has to pay off. Another is that the death benefit protection can offer a nice supplement to any pension income for a spouse or partner that may disappear upon the insured’s death.
How is Underwriting Determined?
Today, there are many life insurance companies that will offer 10 year level term life insurance coverage to applicants through age 90. For those who are in excellent health, the chances of being approved are good. If, however, you have various health issues, it is still quite possible to obtain coverage.
For example, in the past, many insurance companies would either accept or deny an applicant based on certain health factors. Today, though, insurers typically have a wide variety of policy classifications in which policy holders can be placed, based upon their health and other underwriting criteria.
Options to purchase 10 year term life insurance for a 64 year old male, for instance, could include a Standard rate class, a Substandard rate class for those who may have certain health related issues, as well as a Preferred rate class for those who are in excellent health.
How Much Premium Will You Have to Pay?
In most cases, the premium on a 10 year term life insurance policy will be determined based upon five key factors. These include the following:
- Age – The first factor is the applicant’s age. Certainly, the cost to purchase a 10 year term life insurance policy for a 64 year old male will be less than a policy for a 75 year old male.
- Gender – Gender is another big factor in pricing life insurance. This is because life insurance is priced with life expectancy as a determinant – and females typically live longer than males. Therefore, females usually pay less in life insurance premium.
- Amount of the Death Benefit – Certainly, the amount of the death benefit will also play a key role in the price of the coverage. Here, the more you purchase, the more you will pay.
- Length of Coverage – Because term life insurance is purchased for certain periods of time – or terms – the length of your coverage will also be a factor in the premium cost. With this in mind, the longer the coverage stays in force, the more the premium will usually be.
- Rating Class – The rating class is the fifth determinant in premium calculation. This has to do with whether the insured is classed as a Standard, a Substandard, or a Preferred. Those who are Standard will typically pay the amount of premium that other “average” insureds of their same age and health pay. Substandard insureds will pay more due to their higher risk, whereas those who are classed as Preferred will usually pay less.
While all of these criteria will factor into the premium calculation for a term life insurance policy, there is another factor in how the overall price of insurance is determined. This has to do with the type of coverage that you choose.
Overall, there are two primary types of life insurance coverage. These are term and permanent. Term life insurance consists of pure, death benefit coverage. This means that there are no other “bells and whistles” that go along with this type of life insurance. Because of this, term life is usually very affordable – especially for those who are in good health.
Permanent life insurance consists of death benefit protection along with a cash value component that helps the policy holder to build up a substantial amount of savings over time. Because of this, a portion of the premium goes towards the death benefit coverage, while another portion of the premium goes into the savings component. This is why, in most cases, a comparable amount of permanent life insurance will usually cost more than a term life insurance policy.
How to Apply for Term Life Insurance Coverage at 64 Years of Age
When you’re ready to take the next step and apply for term life insurance coverage, it is important to ensure that you compare premiums from several highly rated carriers. That way, you can help to keep the cost of your coverage within your budget.
We can provide you with quotes from many top insurers by filling out the form on this page. And, if you have any additional questions about quotes, coverage, or underwriting, feel free to contact us directly at <XXX-XXX-XXXX> and we will get you the answers that you need.