Set your family up for the future and sail into retirement by locking down a life insurance policy now.
While life insurance is highly personalized, there are some constants: Namely, your age and health affect your coverage. In your early 60s, you’re likely edging closer to retirement and considering a policy to protect your family and finances when you’re no longer around.
At 62, you’re still eligible for life insurance, but you may want to apply sooner rather than later to access the type and amount of coverage you want at the best possible rate. Though there may be some limitations, especially if you have a health condition or you’re looking to buy a 30-year term policy, you still have a suite of options. Plus, at this stage of your working life, you’re probably in a good position to pay the higher premiums for seniors.
What is the best life insurance policy for 62-year-olds?
We recommend: Term life insurance
Most 62-year-olds choose a term life policy. It’s the cheapest option, and it offers protection for your family for a set period. For seniors, 10 or 15 years usually suffices. But if you’re looking for a 25-year policy, you have a short window to sign up; the cut-off for most insurers is 63.
To leave a sizeable legacy or use life insurance for estate planning purposes, you can explore a permanent policy. These policies are more expensive, but they offer lifelong protection.
A great pick: Policygenius
Because choosing the right policy at the right price can be tricky, we recommend Policygenius. With Policygenius you can compare top providers side-by-side, all in the same place.Get a quote on Policygenius
Which is the cheapest life insurance provider for 62-year-olds?
Let’s take a $250,000 policy as an example. Our research suggests two of the cheapest life insurance providers for a 62-year-old nonsmoking man are Banner Life and William Penn at $142.82 a month. If you smoke, that rate might climb to $418.95 a month.
For a 62-year-old nonsmoking woman, the most cost-effective option may be Pacific Life at $98.17 a month. Smokers can look to Banner Life and William Penn, which tend to charge $325.42 a month.
Monthly life insurance costs for a 62-year-old in good health
|Provider||$250,000 coverage||$500,000 coverage||$1,000,000 coverage|
|Banner Life (LGA)||$142.82||$267.29||$522.48|
|William Penn (LGA in New York)||$142.82||$267.29||$522.48|
|AIG Life Ins (American General)||$146.75||$273.69||$528.00|
|US Life (AIG in New York)||$146.75||$273.69||$528.00|
|John Hancock USA||$160.54||$279.32||$520.67|
|Principal Life Insurance||$143.52||$280.48||$540.77|
|Lincoln Financial Group||$200.05||$271.86||$531.48|
|Mutual of Omaha||$167.56||$316.53||$603.09|
What is the typical cost of life insurance for 62-year-olds?
Life insurance is tailored to the individual. While age is a major consideration across the board, insurers put more of an emphasis on health conditions, family histories, occupations and hobbies. This causes the rates between men and women of the same age to vary.
For a 62-year-old man in perfect health, our research suggests the typical cost of $500,000 of coverage in a 20-year policy is around $284.26 a month. Over 20 years, this totals $68,221.66, with an expected value of $234,227.16.
Meanwhile, for a woman, the same coverage costs $197.64 a month on average. Over the course of the policy, that comes to $47,434.71, with an expected value of $176,396.68.
With life insurance, you’re spoiled for choice. Every provider has an angle, and every policy has its benefits. Ultimately, the best life insurance policy for you depends on your financial needs and budget. As a senior, there can be huge price hikes between different levels of coverage.
Let’s look at a 62-year-old nonsmoking woman.
If she’s interested in purchasing a policy to pay off debt, cover her funeral expenses and replace her income when she dies, she might opt for a simple 20-year term life policy with $250,000 of coverage. According to our research, Pacific Life, one of the cheapest providers, may offer her a rate of $98.17 a month.
To give her family the funds they need to not only survive but thrive, she might consider increasing her coverage to $500,000. Pacific Life may charge her $183.60 a month. And if she’s set on leaving a lasting legacy and a hefty inheritance to her kids or grandkids, a $1 million policy may cost her $345.84 a month.
How much life insurance do I need around age 62?
At age 62, you’re probably nearing retirement or enjoying the freedom that comes with it already. This puts you in a unique position compared to if you were buying life insurance just five or 10 years earlier.
When you’re calculating your life insurance needs, consider the following factors: outstanding debt, dependents and end-of-life expenses. For a more accurate picture of how much life insurance you need to take out, use our calculator.
What is my risk of passing away at 62 years old?
You’ve made a lot of memories in your time, and you can expect to make many more. According to our life expectancy data, if you’re a typical, healthy 62-year-old man, your risk of dying within the next five years is 7.24%. For women, the number is a little lower at 4.48%.
To put this into context, let’s look at the average life expectancy in the US. A man who turns 65 can expect to live until 84.3, and a woman is likely to live to age 86.6. These are averages; around a quarter of 65-year-olds will hit their 90th birthday.
When underwriting policies, life insurance carriers take your age and health into account. As a healthy 62-year-old, you may still have a good chance of qualifying for coverage with most insurers, though you may want to sign up soon to lock in the best rate.
Odds of passing away for a 62-year-old
|Within the next…||Male||Female|
Life expectancy rates are merely calculations based on averages of mortality among specific population, gender and age groups. They do not predict the specific life expectancy of any one person - including you. If you're concerned about your overall health and risks, talk to your doctor or health professional.
A relatively healthy 62-year-old can qualify for coverage and preferred rates. While life insurance is more expensive at this age, you still have solid options. Many seniors opt for a 10-, 15- or 20-year term policy, which gives their families and businesses a sense of financial security in case something happens to them. Permanent policies are attractive for those interested in estate planning. They build cash value and allow you to access that money while you’re still alive.
Before settling on a policy, check out our comprehensive guide to life insurance and compare providers.