How do I find the best life insurance for senior citizens?
It really comes down to solving three key problems:
- Choosing the Right Type of Coverage
- Finding the most Affordable Rates
- Getting Approved, even with Health Issues
Do Seniors Need Life Insurance?
I know many of you didn’t think you’d need life insurance after age 60, but let’s face it… we’re all living longer.
According to an article from Everyday Health, People in America today can expect to live longer than ever before. Once you make it to 65, the data suggest that you can live another 19.3 years, on average, according to the Centers for Disease Control and Prevention (CDC). For many, senior living includes carefully managing chronic conditions in order to stay healthy.
Whether you’ve just realized your term policy is about to expire, or you need life insurance for estate planning or to pay for final expenses, this article will answer all your questions so you can find the right plan at a premium you can afford.
Should I Buy Life Insurance as a Senior?
You’re likely wondering how to approach this thorny issue without having to spend a small fortune to get coverage.
But have faith! We’re going to provide you with buying tips so you can find the best life insurance for seniors over 60, 65, 70…and even 80 years of age!
For many of you, this will likely be the last life insurance policy you’ll buy. Which means that it’s all the more important to make sure that it’s the best policy for your individual needs.
So let’s take a closer look at how much life insurance costs now that you are a senior. I am also going to dig into the best type of life insurance for seniors and how to find the lowest premiums!
Top 3 Life Insurance Companies for Seniors
Here’s our list of the top 3 best providers for senior life insurance.
We represent virtually dozens of insurers and have access to over 40 of the top rated life insurance companies! Our sole purpose is to help seniors find the right policy and at best possible rate.
We work for our clients and not the life insurance companies, so we will help you find the best company for your needs.
How to Shop for Senior Life Insurance
Look, the honest truth is as we get older, life insurance becomes more expensive.
The radio advertisements that tell you: “Johnny got a policy for $17 per month…” are talking about 30 or 40 year olds usually.
We can find just about anyone a policy they can afford, but it may or may not be for the amount of coverage you expected.
Get a 10 Year Term Quote
So step 1 is to get your expectations in line, and I believe showing you some “best scenario” rates will help you do that.
Get sample quotes for a 10 year term policy, which is the lowest cost type of life insurance policy. If you would like more ballpark quotes, we’ve published some great sample term life insurance rates for 60-69 year olds. Or you can get a free quote by clicking the link below.
Why Do Seniors Need Life Insurance Coverage?
“Determine WHY I need coverage? Isn’t it obvious? I want to leave money when I die.”
But NO, it’s not obvious… your answer matters!
Determining WHY you need coverage will help answer how much coverage you need and the type of plan. And while there are many reasons a senior would purchase a policy, the important thing to remember, is that there is an affordable policy for almost any situation.
Fully understanding your specific needs is the first most important step.
Here are some of the most important reasons seniors might need life insurance:
- Offsetting loss of retirement income upon spouse’s death (Pension max)
- To pay off all personal debts such as credit cards and personal loans after death
- Provide income in respect of a decedent taxes on IRAs, 401(k)s etc
- Allow you to provide income for the care of a disabled child or spouse
- Enables you to use cash surrender values (For permanent life insurance policies only) as a source of emergency funds during life
- Use the cash surrender value as a whole or partial annuity to provide additional guaranteed lifetime income
- Provide a financial legacy as a gift to grandchildren
- Offer a gift to charity at death or prior if desired
- Provide the opportunity to spend all of your money and still provide a legacy to your children and/or grandchildren
- Provide creditor protection as life insurance is creditor proof in most states
- Use the policy to collateralize loans such as personal debt or the amortization on a mortgage
Ok, do you have the answer WHY you need coverage? Now ask yourself:
Will I need this coverage for a short period of time, such as 10 to 20 years, and then the insurance need will disappear? Or will I need this coverage for the rest of my life?
Short Term Needs: You Need Term Insurance
If you answered that you need life insurance for short term needs like:
- Income protection
- To pay off bills like credit cards or a mortgage
- For a short term business deal or loan
Then you probably only need coverage for 10 to 20 years, so I suggest you look at “term life insurance.”
Long Term Needs: You Need Permanent Life Insurance
If you need coverage for longer coverage needs like:
- To help pay income taxes upon your death
- To provide a legacy to my children or grandchildren
- To give to charity
Then you need a quote for a permanent plan like whole life insurance or universal life insurance.
What Type of Life Insurance is Best for Seniors?
When it comes to finding the best life insurance for seniors over 60, there are a variety of choices available to you. It all depends on your needs, your current health and budget considerations.
Some policies will not be suitable for your needs, so you need to consider all your options carefully.
We will give you a quick preview of all your life insurance choices available for seniors to help you decide which ones might address your particular needs.
Let’s look at the types of life insurance available in more detail to help you decide which works best for you as a senior!
Knowing which policy is right for you is crucial in finding the best life insurance for seniors over age 60.
Looking for the Best Life Insurance for Seniors? – Term is AFFORDABLE!
Term is the best choice for most seniors who want larger policies at affordable rates. It’s also the best policy for seniors with good health, average health or those with moderate medical conditions.
Term life insurance is the least expensive of all the different types of life insurance available. Term addresses most life insurance needs.
Please note that a medical exam is required as part of the application process.
However, the one drawback is that some term periods aren’t available after certain birthdays.
Here are the term cut off periods in relation to your age:
- 30 and 40 Year Terms are no longer available after age 60: You can choose from 10, 15, 20 25 year terms
- 25 Year Terms are no longer available when you turn age 66: You can choose from 10, 15 or 20 year terms
- 20 Year Terms are no longer available after age 70: You can choose from either a 10 or 15 year term
- After age 75: You can only obtain a 10 year term or less
Should Seniors Consider Permanent Life Insurance?
A permanent life insurance policy is the best choice for most seniors who want larger policies and need coverage for their entire lifespan. We generally only recommend permanent policies for those who have:
- A large income
- Require an additional tax shelter because they’ve maxed out their IRA or 401(k) contributions
- Have a large estate and require liquidity
Permanent life insurance policies include both Whole Life and Universal Life. These policies vary considerably from company to company as there are many hybrid forms of these policies. Whole life is restrictive, offering few choices over the life of the policy. Universal life policies are more flexible and allow you to choose your payment methods, reduce or increase death benefits and to make other various investment decisions.
Can Seniors Qualify for No Exam Policies?
We recommend this policy for seniors with:
- Moderate or more serious health issues
- Those squeamish about needles
- Those who don’t want the hassle of taking a medical exam
- Clients who need insurance quickly
There many different types of no medical exam life insurance. Typically companies will ask 5 or 6 health questions and then your policy will be approved in 48 hours or less.
Insurance policies are available both as term and permanent, but for the most part, most are issued as term.
Typically no medical exam policies only offer face value up to $250,000. However, there are a handful of companies which offer up to $500,000 in coverage. We also know of one company which offers coverage up to $1,000,000 – AWESOME!
Do no exam policies cost more?
On average the answer would be yes… quite a bit more.
The good news is that with so many companies now offering no medical exam life insurance, rates have dropped dramatically over the years. You can even find premiums that are competitive with similar term policies.
7 Life Insurance Savings Tips for Seniors
Use an Independent Life Insurance Agent
We’ve discussed this in detail above but cannot stress this enough when it comes to saving money!
Consider Term Life Insurance
Term life insurance is the most affordable form of life insurance for seniors in their 60’s, 70’s and 80’s. For the most part, a term policy will cover the majority of your needs.
How you pay your premiums can also save you a lot of money. Most insurers allow you to opt for monthly, quarterly, semi-annual, annual or a lump sum payment. The fewer premiums you pay, the more you save because otherwise, you will also have to pay more for administration costs. A lump sum payment offers the most savings. Monthly payments are the most expensive.
Improve your Health
Anything you can do to improve your health before you take a medical exam has the potential of giving you a better rating which means you can save more money. Shed a few pounds, quit smoking, exercise & change your diet to improve cholesterol and blood pressure levels.
Buy Only What You Need
The higher the face value of the policy you buy – the more it costs. Don’t over-insure yourself!
Consider Purchasing Joint Survivorship Policies
If you want coverage for both you and your life partner, you might consider buying a joint survivorship policy.
Bundle Life Insurance Policies
This tactic is also known as layering life insurance. This simply means you buy 2 or more policies to cover different financial needs for different lengths of time. This eliminates the need for 1 massive policy. Multiple policies combined are cheaper and you can also cancel them when you no longer need the coverage.
*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.