Health insurance costs for a 60 year old
Health insurance premiums for a 60-year-old are significantly higher than for younger individuals, largely due to the increased risk of health issues with age. A 2025 analysis by Forbes found an average monthly premium of around $994 for a 60-year-old on an ACA marketplace plan, though this number can be substantially higher without subsidies. The type of plan you choose on the ACA marketplace, referred to as the metal tier, also plays a huge role in your monthly costs. Bronze plans, with their lower premiums, may seem attractive but typically come with higher deductibles and out-of-pocket costs. On the other hand, Gold or Platinum plans have higher premiums but lower out-of-pocket expenses.
For those still working, employer-sponsored plans are often the most affordable option, with average employee contributions averaging around $114 per month. If you've retired early or left a job and are not yet eligible for Medicare, COBRA continuation coverage is another option, but it can be very expensive as you must pay the full premium plus an administrative fee. Some retirees opt for temporary short-term health insurance to bridge the gap until they turn 65 and become eligible for Medicare, though these plans have limitations and do not cover pre-existing conditions.
Auto insurance costs for a 60 year old
Drivers in their 60s often benefit from some of the most competitive auto insurance rates available, as insurers view them as experienced and reliable. Bankrate's 2025 data shows the average annual full coverage rate for a 60-year-old is about $2,415, which is lower than the national average. However, prices vary widely by state, provider, and personal driving record. Rates typically begin to increase again around age 65, making the early 60s a prime time to lock in good rates.
- Factors affecting car insurance rates:
- Location (higher crime/accident rates increase premiums)
- Driving record (accidents and tickets raise costs)
- Vehicle type (safer, less expensive-to-repair cars cost less to insure)
- Annual mileage (driving less often lowers your rate)
- Credit history (used in most states to determine rates)
- Gender (in states where it's permitted, men often pay slightly more)
Life insurance costs for a 60 year old
Life insurance costs rise with age, with a 60-year-old paying significantly more than a 40-year-old for the same amount of coverage. The premium for life insurance depends on the type of policy and your overall health at the time of application.
- Term life insurance: This provides coverage for a specific period (e.g., 10 or 20 years). Premiums are lower than whole life but increase if you need to renew at an older age. A healthy 60-year-old can still find reasonable rates, especially for shorter terms.
- Whole life insurance: This is a permanent policy that doesn't expire and includes a cash value component. It is more expensive than term life but offers a guaranteed death benefit and can be used for estate planning or leaving a legacy. Some seniors find it cost-prohibitive.
- Final expense insurance: This is a smaller whole life policy designed to cover funeral and burial costs. It has lower premiums and is often easier to qualify for, sometimes without a medical exam. It's a popular and affordable option for those primarily concerned with covering end-of-life costs.
Long-term care insurance costs at age 60
Long-term care insurance (LTCi) covers services like nursing home care and at-home assistance, which Medicare doesn't fully cover. Premiums for LTCi increase with age, making age 60 a common time for people to consider purchasing a policy before rates become prohibitive. Costs can vary widely depending on the coverage amount, waiting period, and your health. For a healthy 60-year-old, the annual premium can range from around $1,200 for a male to $1,900 for a female for a policy with $165,000 in benefits.
Comparison of insurance types for a 60 year old
| Feature | Health Insurance (ACA) | Auto Insurance | Life Insurance | Long-Term Care Insurance |
|---|---|---|---|---|
| Average Monthly Cost | ~$994 (without subsidies) | ~$201 (full coverage) | Varies greatly by policy, amount, and health | ~$100-$158 (single policy, varies by gender) |
| Primary Purpose | Cover medical costs | Cover vehicle-related liabilities and damage | Provide financial support to beneficiaries | Cover long-term care services |
| Key Cost Factors | Age, location, plan tier, smoking | Driving record, location, vehicle, mileage | Age, health, policy type, coverage amount | Age, health, gender, location, coverage terms |
| Cost Trend | Rises with age until Medicare eligibility | Generally low, but rises after age 65 | Significantly higher than younger ages | Increases with age; best to buy younger |
| Best for | Access to comprehensive medical care | Legal driving coverage and asset protection | Supporting dependents, legacy planning | Covering potentially high long-term care expenses |
Tips for lowering your insurance costs
- Bundle your policies: Most insurers offer a discount for bundling multiple policies, such as auto and home insurance, with the same company.
- Shop around and compare quotes: Get quotes from several different companies to find the best rates for your specific situation. This is especially important for seniors, as rates vary significantly.
- Increase your deductible: A higher deductible on your auto or health insurance means you pay more out-of-pocket before coverage kicks in, but it lowers your premium.
- Take a defensive driving course: For auto insurance, many states mandate discounts for seniors who complete an approved defensive driving course.
- Maintain a good driving record: A clean driving history with no recent accidents or tickets is one of the best ways to keep auto premiums low.
- Look for low-mileage discounts: If you're retired and no longer commuting, inform your auto insurer. Lower annual mileage can lead to a reduced premium.
- Explore senior-specific plans: Some insurers offer special packages or discounts tailored to senior drivers and retirees.
- Consider alternatives like fixed-indemnity plans: If ACA plans are too expensive and you don't qualify for subsidies, fixed-indemnity plans can provide coverage for specific events, though they don't cover all essential benefits.
Conclusion
Understanding how much insurance costs for a 60-year-old involves looking at multiple factors for each type of coverage. While health and long-term care insurance premiums increase with age, auto insurance for those in their early 60s can be quite affordable. The best strategy is to carefully assess your specific needs and budget for each type of coverage. By shopping around, leveraging discounts, and maintaining a healthy lifestyle, you can find the most cost-effective insurance solutions for your golden years.
For more information on health insurance options, you can visit the official Medicare website at www.medicare.gov to explore plans and compare options as you approach age 65.
