Do you need life insurance after 65?


A life cover is designed to help deal with the loss of income when one of the breadwinners of the family passes away. This is because the sum assured of the life insurance policy helps the family meet their financial obligations in the short-term and continue with their goals in the long-term. Traditionally, people had a fairly standard timeline based on which they would reach major life milestones at a given age range including starting their first job, buying a car, getting married, buying a house, having children, and retiring.

By the time they were 60, they were through all these milestones and didn’t have dependents and didn’t require a lot of funds. Now, however, times have changed. Everybody has different life goals they chase and no two people’s timeline of these milestones is identical. In such a case, having a life cover is essential even after the age of 65. Here’s why.

Retirement may not mean loss of income

Earlier, insurance companies had an age cap at 65 for life insurance policies. This is because the purpose of life insurance, to make up for loss of income, didn’t seem to apply for those who had already retired. However, today, people don’t stop working or earning after 60.

Many people start their own business at that age to fulfil their life-long dreams, whether that’s running a café up in the hills or serving as an advisor for a startup. Additionally, there are other sources of income such as investment income and the process of wealth creation doesn’t come to a stop. Hence, getting a life insurance policy even at 60+ is important. Some insurers today have the age of entry as high as 75 years so you should be able to find a plan suitable for your needs. You can use an online life insurance calculator to figure out how much sum assured you need and what the premium for it will be.

Having a partial dependent

It’s possible that your spouse is financially dependent on you and your income. During the golden years, nobody likes to let go of their standard of living or be dependent on their children or relatives to support them financially. Hence, getting a life insurance cover is crucial in such a case.

It may also be possible that while your children have completed their education and now have jobs, they may not be completely independent financially. They may still rely on you partially for funds. So, even if you have one person who is wholly or partially relying on you for financial support, it’s prudent to have a life insurance policy in place.

Debt that hasn’t been fully serviced

Certain types of loans have a long tenure such as a home loan. For instance, if someone has taken a home loan later on in their life, say at the age of 40, and the tenure is 30 years, they will have to keep paying the Equated Monthly Installments (EMIs) until the age of 70.

It’s also possible that you may have taken certain loans to finance your business or for medical emergencies and are still paying them off. This is why it is important to have a life cover in place so that the burden of debt doesn’t fall on your spouse or children once you’re gone.

While these are some of the most common reasons why having life insurance even after the age of 65 makes financial sense, there can be numerous other reasons that are more personal. For instance, if someone was not able to build wealth in their middle age and is trying to do so in their golden years to leave behind a legacy for their children, then, they may find having life insurance useful. Having a life insurance policy will do your financial health no harm and may just help out in ways you can’t anticipate right now.

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