Finding the best life insurance for seniors 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
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.
You’re also 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 to help you find the best life insurance for seniors over 60, 65, 70… and even 80 years of age!
Table of Contents:
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.
Today, people in America 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 of you, this will likely be the last life insurance policy you’ll buy. This means that it’s all the more important to make sure that it’s the best policy for your individual needs.
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.
11 Reasons Why Seniors Need Life Insurance
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
- To use cash surrender values as a source of emergency funds while living
- 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
Best Life Insurance Companies for Seniors
We represent virtually dozens of insurers and have reviewed over 50 of the best life insurance companies!
We work for our clients and not the life insurance companies, with the sole purpose is to help seniors find the right policy and at best possible rates.
Here are the top 3 providers of life insurance for seniors:
- Best for Seniors
- Wide Selection of Policies
- Favorable for High Cholesterol
4.8 out of 5
- Best for Seniors
- Affordable Term Coverage
- Easy Approval Process
- Best for Seniors
- Affordable Policies
- Favorable Underwriting
How Much Does Senior Life Insurance Cost?
So let’s take a closer look at how much life insurance costs now that you are a senior.
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.
So step 1 is to get your expectations in line. 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 life insurance rates for 60-69 year olds as well as rates for 70-75 year olds. Or you can get a free personalized quote by clicking the link below.
Now, let’s dig into the best type of life insurance for seniors and learn how to find the lowest premiums!
What Type of Life Insurance Policy is Best for Seniors?
When it comes to finding the best life insurance for seniors, there are a variety of choices available to you. It all depends on your needs, your current health and budget considerations.
To determine what type of life insurance policy is best for your situation, 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: 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: Permanent Life Insurance
If you need coverage for longer coverage needs like:
- Paying income taxes upon your death
- Providing a legacy to my children or grandchildren
- Giving to charity
Then you need a quote for a permanent plan like whole life insurance or universal life insurance.
Term Life Insurance for Seniors
Term life insurance 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.
Age Cut-Offs for Term Life Insurance
Here are the term cut off periods in relation to your age:
- 30 and 40 Year Terms are not available after age 60: You can choose from 10, 15, 20, or 25-year terms
- 25 Year Terms are no longer available once 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
When Is Permanent Life Insurance The Best Choice for Seniors?
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. 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 that offer up to $500,000 in coverage. We also know of one company that 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 Tips for Seniors
Here are 7 tips that will help you save on life insurance as a senior:
1. 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.
2. Make Fewer Premium Payments
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.
3. 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.
4. Buy Only What You Need
The higher the face value of the policy you buy – the more it costs. Don’t over-insure yourself!
5. Consider Purchasing Joint Survivorship Policies
If you want coverage for both you and your life partner, you might consider buying a joint survivorship policy.
6. 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.
7. Use an Independent Life Insurance Agent
We’ve discussed this in detail above but cannot stress this enough when it comes to saving money!
*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.