Life Insurance For Seniors
Seniors are often faced with the difficult decision of determining how best to protect their families in case of an unexpected death. Life insurance for seniors is vital to safeguard your family’s financial future and can provide financial stability for those left behind.
Life insurance policies are designed to cover the costs of funeral expenses and other outstanding debts, such as medical bills or mortgages. Unfortunately, as seniors age, life insurance costs increase due to a heightened risk of illness or mortality. However, a range of policy options is still available for seniors that can provide coverage without breaking the bank.
What Types of Life Insurance Are Available For Seniors?
The ideal life insurance for elderly individuals is determined by age, health, and financial objectives. Though there may be a need for a medical examination while purchasing term or permanent life insurance, it is still possible for individuals in their 60s or above. Additionally, older people who suffer from health issues can explore options that do not necessitate a medical examination. You may learn more about your alternatives here.
Term Life Insurance for Seniors
You might compare term life insurance policies to make higher amounts of coverage more affordable. For instance, you may need a six-figure death benefit if you still need to pay off your mortgage, support other people, or have other significant financial obligations.
Disclaimer: These are sample quotes only.
These are sample life insurance rates for a Texas woman who qualifies for preferred plus rates and wants $250,000 in 10-year term coverage:
- Age 50: $37.05
- Age 60: $64.37
- Age 70: $108.26
As you can see, after age 70, the term grows expensive and challenging to obtain. Finding life insurance for seniors over 80 years old in excellent health is possible. It might be worth paying the life insurance premiums to obtain financing for a business or some other financial reason, but it’s not that typical.
Whole Life Insurance for Seniors
Whole-life insurance policies don’t end as term policies do. You can be assured of coverage for your entire life at the same rate as long as the premiums get paid. Another benefit to your whole life is that you can eventually build up a cash value, so you may use your policy while you are still alive in some cases. You may even be able to sell your life insurance policy at some percentage of the face value.
Whole life insurance costs more than term, so most people shop for more modest face values than for term.
These are sample rates for the same female Texan for $50,000 in whole life at different ages:
- 50: $93
- 60: $150.50
- 70: $250
- 80: N/A
Universal Life Insurance for Seniors
Universal life is similar to whole life because they are both permanent life insurance policies that don’t expire after a term. However, universal life is more transparent about how the cash value can grow, so people tend to buy it when they want both coverage on their lives and a savings product.
If you’re interested in universal life, these sample rates for the same woman and $250,000 with a preferred plus rate might be helpful:
- Age 50: $192.11
- Age 60: $330.84
- Age 70: $733
- Age 80: $1,432.31
No Exam Life Insurance for Seniors
Insurers often offer no medical exam life insurance policies that only ask a few questions on the health application. Typically, you’ll get shown the best rates if you’re healthy and have the exam; however, if you’re not likely to qualify for preferred rates, you may prefer to skip the exam and get standard quotes.
These are some examples of what you might expect to find:
- Term: Depending on the insurance company, age, and other factors, you can buy from $50,000 to $400,000 death benefits without having an exam.
- Permanent: In comparison, you can usually only buy whole life insurance without an exam for amounts that range from $5,000 to $25,000. These small policies may be referred to as burial policies.
Insurers will still do some health underwriting even if they don’t require a medical example.
These are sample quotes on life insurance for a senior woman in Texas who wants $100,000 in coverage:
- Age 50: $20
- Age 60: $32.45
- Age 70: $161.55
For some high-net-worth older adults, the rates make sense. However, it’s better for most people to lock in lower rates at a younger age.
Premium Rate Classes
Small burial plans may not even have different rate classes. They rate by age and, in some cases, by tobacco use. For more significant amounts of coverage, you will probably find that life insurance companies will offer cheaper rates to people that they believe are lower risks because of answers to health questions.
This is a list of rating classes that life insurance companies might have. They are listed in order of most affordable to most expensive:
- Preferred plus quotes: Insurers may offer this rating for applicants with excellent health, healthy lifestyle habits, and no red flags on their medical history.
- Preferred quotes: This is generally reserved for people with excellent health and good health habits. Some companies may offer this rate to people with minor medical conditions they manage well.
- Select quotes: The select rating is still for healthy applicants, but insurers may offer a rate like this to people who weigh a bit more than they should or otherwise can’t be rated in a preferred class.
- Standard quotes: It’s offered to people in average health who may weigh too much for a special rate or have a family history of serious illnesses.
- Substandard quotes: Some underwritten life insurance policies may still offer to insurer people who are managing serious health issues, like diabetes or high blood pressure. This rate might also be provided to those who have recovered from a severe illness that could sometimes recur.
You will also almost always find that quotes for smokers will be higher than those who don’t use tobacco. You may see these different rating classes listed when you obtain your life insurance quotes for seniors. You can estimate your class; however, the life insurance company will have the last word on the course you are assigned to.
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