Nobody likes to think about death, but getting life insurance not only is the responsible thing to do, but it also gives you the peace of mind of knowing that you won’t be a burden to your loved ones after you have passed on. While it is harder for seniors to find a good life insurance policy, it’s not impossible. Here are some suggestions to help you get started.
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Table of Content
- The Different Types Of Life Insurance For Seniors
- Pre-Retirement Seniors Over 60
- Retired Seniors Aged 65 and Upwards
- Seniors Aged 70 and Over
- Seniors Over 75 – Don’t Forget to Leave Behind a Legacy
- Seniors Over 80 – Just Passed the Average Life Expectancy Age
- Seniors Over 85 – You Can Still Manage a Life Coverage
- Seniors Over 90 – Are You Too Old to Grab a Life Policy?
- How Do You Save On Senior Life Insurance?
- Top 10 Life Insurance Companies for Seniors
- How to Choose the Best Life Insurance Company for Seniors?
- Beware & Remember:
The Different Types Of Life Insurance For Seniors
When it comes to securing your future, understanding the different types of life insurance and how they can help you or your loved ones is important. Seniors who are 50 to 90 years old have three different options and each one works well in different situations.
Term life insurance is valid for a certain number of years. If you choose a five-year policy and are still alive at the end of the policy, you need to choose a new policy or you will not have coverage. However, the terms given are usually very generous and this type of life insurance can often pay out at very high levels.
- Easy to get coverage.
- Cheaper than most other forms.
- Pays out at very high rates.
- Premiums never change during the fixed term.
In terms of cost, a man or woman who is 60 years old might be able to find coverage for as low as $15 for $10,000 in coverage or as high as $250 a month for coverage approaching a million dollars. However, someone who is 90 years old can expect to pay a minimum of $40 and a maximum of around $700 for the same levels of coverage.
Permanent or Whole
Permanent life insurance is just what it sounds like, insurance that never has an end term and is always going to be valid as long as you are paying your premiums. It is generally a bit more expensive than other options, but if you are reasonably healthy and feel like you will remain in good health for a number of years it will usually work out to be cheaper than term life insurance.
- You never have to worry about losing coverage.
- Premiums start higher than term insurance but work out cheaper over time.
- Only require one qualifying event.
- Works best when purchased earlier on in life.
In terms of cost, someone who is 60 years old is like to pay $47 to $500 a month depending on the coverage that they want. Someone who is 90 years old will find their rates starting at around $100 a month and going up to $700 a month depending on the coverage selected. You can also choose a policy that is graded over time.
Burial life insurance is meant to cover only the cost of your burial and anything that you may have left behind after you die. This means that policies are much less expensive, but that you won’t be leaving a lot of money to your children or spouse. This type of insurance can be a good choice for people who are on a tight budget.
- It can be extremely cheap.
- It ensures that your funeral will not be a burden.
- Pays out immediately upon your death.
- Tailored to your needs.
- You can pay for extra coverage to leave something to your children.
In terms of cost, someone who is age 60 might pay rates as low as $20 for $10,000 in coverage, or might pay up to $120 for $25,000 in coverage. Someone who is age 90 may have rates starting at $40 and going up to $200 for the same levels of coverage.
Note: The pricing mentioned here is not fixed as life insurance premium is volatile and heavily dependent on certain factors such as age, gender, health condition, lifestyle, coverage amount, location and so on. In order to get a proper quote, click here.
Pre-Retirement Seniors Over 60
Experts say that it’s important for seniors over 60 to have a life insurance policy. Often, those seniors who have not yet reached full retirement age, are still working a steady job. This makes it much easier to find a policy with a lower premium. However, certain health factors could still make it difficult to find affordable life insurance. Term life insurance is usually the best fit for seniors that go into this group, as you’ll pay a lower premium which will remain the same through the end of the policy period.
Retired Seniors Aged 65 and Upwards
While it is a bit more difficult for retired seniors over 65 to find affordable life insurance, it’s still possible. As you age, you begin to think about the financial condition of your estate, and what kind of impact it will have on your loved ones. A good life insurance policy helps to relieve some of that stress. Knowing that you won’t cause your loved ones to experience a financial hardship when you die, will actually help you to live a longer, happier life. Take advantage of the internet to compare pricing when searching for the best premium. Let us help you find a life insurance at sixty five.
There is nothing that adds more joy to your life than watching your grandchildren growing up. You’d love to do something that could give them an advantage in life, such as funding the cost of attending college someday. A term life insurance policy can make it possible for you to leave such a legacy to them. It’ll also help to cover the cost of your funeral expenses and pay for outstanding debts like credit card and mortgage debt. To get the best premium possible, work to eliminate any bad habits, like smoking or drinking, and avoid developing any new ones. Read more about them here.
Seniors Over 75 – Don’t Forget to Leave Behind a Legacy
As life expectancy grows shorter, it becomes more difficult to find an affordable life insurance policy. Health gradually deteriorates over time, and insurer’s need to take that into account. It’s still highly recommended that you attain a policy if you can afford the premium, in order to leave a legacy for your family. If you’re on a budget, spend some time to determine how large of a policy you have to have to make a realistic plan. Shop around for term life insurance, and try to find a policy that has a 20-year term. You’ll be able to renew it if you do outlive the plan. So, how to do plan a senior life insurance over 75, here’s the guidance.
Seniors Over 80 – Just Passed the Average Life Expectancy Age
Most people expect that it would be impossible for seniors over 80 to obtain life insurance, but this simply isn’t true. You should at least find a policy to cover basic needs such as funeral expenses. The average cost of a funeral in the United States has risen to about $9,000, and it continues to grow. Even if your loved ones are doing well enough financially, it is often difficult to come up with that kind of money on short notice. To avoid placing such a burden on them, you should examine your needs to determine the right amount of coverage that you need.
Seniors Over 85 – You Can Still Manage a Life Coverage
It is still possible for seniors over 85 years old to find affordable coverage. You’re most likely going to have to apply for a guaranteed acceptance life insurance policy, which has a built-in 12 to 24 month waiting period before full benefits would pay out. If you die before the end of the waiting period, your benefits will equal the amount of the payments you’ve made thus far. Full death benefits will kick in if you survive past the waiting period, making it possible for you to leave a legacy still. No exam life insurance is more expensive, but you’ll be able to attain a policy without submitting to a medical examination. Learn more details on life policy over 85 here.
Seniors Over 90 – Are You Too Old to Grab a Life Policy?
More Americans are living into their 90’s and beyond all the time. If you are one of them, and still don’t have a life insurance policy, it’s not too late. Admittedly, it’ll be much harder to find an affordable policy, but if you take the time to shop around, you should be able to find one that works with your budget. Being able to cover your funeral costs and leave a legacy for your loved ones, are the biggest motivating factors to want to get a policy at this age. It can be confusing for seniors over 90 to choose the right type of life coverage.
Nobody wants their death to cause a financial burden for their family members, and you can have the peace of mind of knowing that your death won’t become one. It’s never too late for most seniors to find an affordable life insurance policy that will protect their families from financial hardship.
How Do You Save On Senior Life Insurance?
It might be time to scout the market for a comprehensive senior life insurance plan. To determine a good fit, it’s important to analyze the market and take your time.
Here are three important tips to consider before saving on senior life insurance.
1) Compare Quotes
The best place to start is by comparing various life insurance quotes.
Sit down and set a budget along with your list of requirements for the insurance coverage. This offers a guideline for insurance agents to work with and can ensure a solid deal is found. Take your time with the insurance quotes and weigh them for quality, affordability, and consistency.
Don’t assume anything and be ready to stay patient.
2) Assess Features
What are you looking for in the life insurance plan?
Key features are necessary to make the coverage comprehensive. Without this, it might not yield the level of protection you’re after.
Go ahead and assess the features making sure things are fitting with your needs. If not, the results might be inferior, and you might get a higher quote.
3) Consider “Group” Buys
One of the best ways to save on life insurance is a group buy.
This is when a collective group of seniors invests in the same insurance plan for a reduced rate. This is easier for those who are planning to work for several years and might be able to sign up for their employer’s network. This is a good option to consider while making a decision.
These are the best ways to save on life insurance for seniors between the ages 50-90. Take your time to research various plans, features, and quotes before deciding. The right option is out there for those who consider this as an investment and choose noteworthy features.
Top 10 Life Insurance Companies for Seniors
If you are looking to purchase life insurance for seniors in the U.S, then one thing to consider is finding the company that will best suit your needs. In this review of top ten companies offering senior life cover, we will be looking at them in no specific order considering they all offer varying terms and what works for one person may not work for another.
Transamerica was conceived in 1904 and has been one of the significant providers of life insurance for over 100 years, making it one of the most trusted insurance companies in the U.S. It was among the pioneers of universal life insurance policy. Transamerica is also a part of the AEGON group of companies which is one of the world’s largest insurance organizations.
The Transamerica, an arm of the more extensive Transamerica group of insurance companies, has its headquarters in Cedar Rapids, IA. Both the Transamerica and Transamerica Financial Life Insurance have A.M Best rating of A+ (superior).
- Level Term Life Insurance Programs: This product is available to you from the ages of 18 up to 70 years, besides providing benefits ranging from $50,000 to $150,000.
- Senior Term Plans: This plan covers you (the principal member) and your spouse aged between 45 years to 75 years old, with its termination age being 100 years. It has a minimum benefit of $2000 and a maximum of $25,000.
Mutual of Omaha
Mutual of Omaha started its operations as a mutual firm in 1909. It’s one of the wealthiest companies today with over $4 billion a year in returns. With its headquarters in Omaha, Mutual of Omaha has various subsidiaries specialized in different niches. Its policies can be bought online from its website or through independent agencies all over the U.S. Mutual of Omaha is very stable financially packing an A.M. Best rating of A+.
Policies offered for senior citizens
Mutual of Omaha provides a whole life insurance cover for seniors aged between 45-85 years, with benefits amounting to between $3,000 and $ 25,000. Here are the unique features of this plan:
- They do not require medical examinations when purchasing the policy.
- It has a low minimum age limit of acquiring the policy (45 years old)
- It guarantees the cover.
- It offers fixed rates and benefits up to the end of your cover.
New York Life
Founded in April 1845, New York Life is probably the oldest life insurance company in the U.S April 1845. It also ranks as third-largest life insurer in the U.S. Being a mutual company means that its shareholders are the policyholders. New York Life has a very high A.M Best rating of A++, which shows that the company has stable financial backing.
Policies on offer for senior civilians
- Simplified Term Life: This is a short-term plan which can be accessed from age 30 to 74 and has up to $50,000 of coverage.
- Simplified Whole Life offers benefits that range from $5,000 to $50,000, and has a product whose uptake age limit is between 40 and 70 years.
Assurity Life Insurance
Assurity Life Insurance is a mutual life insurance company based in Lincoln, Nebraska. The company started its operations in 1890. Assurity sells its life cover products through agents in 49 states of the U.S. It has an incredibly high A.M Best rating of A++ (superior).
Policies offered for senior members
- The company provides four life policies to seniors, namely permanent, term, universal life coverage, and Accidental Death and Dismemberment cover (AD&D).
- Term life policy – The policy is available provided you pay the premiums. It seeks to provide benefits of death for a certain number of years, ranging from 10 to 30 years. As long as the premiums remain unchanged so will be the benefits.
- Universal and whole life coverage are what makes up the permanent life insurance. These two policies help in giving benefits of death and the buildup of cash value to beneficiaries unless the policyholder cancels their policy or stops remitting their premiums.
- For these types of policy, there’s taxation defer to the time of their withdrawal.
- In their Simplified Whole Life policy, their coverage benefit amount ranges from $25,000 to $50,000 depending on the age of the policyholder.
- It’s always a requirement to be subjected to medical exams before taking a life policy. However, with Assurity there’s also an option to choose a “no medical exam life insurance policy.”
- The company also offers guaranteed term which gets higher depending on your age.
The Foresters Company is pretty old, dating as far back as 1834. Today, the company operates as a mutual company in the U.S, Canada and U.K. While Foresters may not be a typical pick for many, it does offer some good life covers for the senior members of the American society. It has an A.M Best rating of A.
Policies on offer
- Your benefits range from $50,000 to $250,000 for Term.
- If you’re a senior citizen aged between 56 to 65 years, then you are eligible for a cover of up to $150,000 for Term.
- If your age is between 50 and 85, you can apply for a permanent life policy whose benefits range from $2000 to $35,000.
Protective Life Insurance Company is a subsidiary of Protective Life Corporation founded in 1907. It has its headquarters in Birmingham, Alabama and a reach to all 50 states. The company is financially stable with an A.M Best rating of A+.
Policies offered for senior citizens
- Term offer is at periods of 10 to 30 years
- Coverage amount is at $50,000 to $10 million
- Whole life insurance plan with lifetime death benefit coverage and a fixed interest rate regardless of circumstances.
- Universal plan with permanent coverage and premium flexibility.
Lincoln Financial Life Insurance
Established in 1905, Lincoln Financial Life is one of the oldest and renowned life insurers in the history of the U.S. It’s an arm of the broader Lincoln Group. It has an A+ rating from A.M Best, an indication that the company is financially stable. This is one of the most accommodating life insurers for elder citizens.
Policies offered for senior citizens
- Lincoln Life Elements Level is a Term product directed towards seniors of the age 45 and above, and coverage of $500,000 and higher.
- Face amount of $250,000 up to $1,000,000.
- Policy cover lasts for between 10 to 30 years
Also known as American General or American International Group is one of the largest American life insurance companies. The company operates in multiple nations around the world. It has what it calls a Guaranteed Universal Life cover which offers one of the most competitive benefits and flexibility in the industry.
Policies offered for senior citizens
- The face amount is $250,000 up to $1,000,000
- It admits applications from seniors aged 50 years and above
- The policy has a cover period of between 10 to 30 years for Term.
Conceived in 1868, the Metropolitan Life Insurance or commonly known as MetLife is one of the largest insurance providers in the world. The company ceased to operate as a stock insurance entity to a mutual company in 1915. It has an A.M Best rating of A+. Quotes and non-exam Term plans can be purchased online through their website. It offers only one life plan called MetLife Rapid Term to individuals.
Features of the rapid term
- Coverage of up to $500,000
- No medical exam
- Terms ranging from 10,15,20,25,30
- Can be purchased online or by phone.
American National Insurance
Formed in 1905 and headquartered in Galveston, Texas, American National Insurance Company or ANICO has countrywide reach through its 50-state agent network. ANICO is one of the most successful insurers in the U.S and has an A.M Best rating of A.
Policies offered for senior citizens
- ANICO has a Term Express product with benefits of $50,000 to $250,000.
- Admits individuals Aged between 18 and 65 years old
- It has a 10 and 15 years Term period.
- Its Universal Life covers up to 121 years with benefits ranging from $25,000 to $250,000.
- Its Whole Life cover offers benefits ranging from $10,000 to $250,000, with eligible members required to be between the ages of 18 to 65 years. It also comes with the living benefit.
How to Choose the Best Life Insurance Company for Seniors?
Life insurance has over time helped many people, especially the seniors to plan their estates. However, you may be wondering whether it is necessary to take a life policy. The answer to that is simple; yes it is essential if you have people who depend on you.
As a senior with dependents, a life insurance policy can help in taking care of the people you are providing for, in case you die. Therefore, before you settle on a company to give you life coverage, it is essential to analyze the available options carefully.
As such, you may need to consider a few factors, most of which are specific to your individual needs. Here are some of these factors to take into consideration before settling on a suitable company to offer you the life insurance policy.
Your current age and the length of the cover
Most insurance companies that offer life insurance covers to seniors have age caps. Some provide this service for people aged between 50 and 65 years old, others start at 45 and close at 85. Some other companies do insure people up to the age of 121 years. Therefore, choose a company that accommodates your age, and whose policy goes for a long time before expiry. Remember, some companies offer their life policy for a fixed period, say ten years. There are others whose cover can go for 30+ years.
The claim settling reputation of the company
There are many life insurers out there that keep frustrating the policy’s beneficiaries. I am sure nobody, including you, would like their dependents to go through anguish in accessing their benefits when the right time comes. It is therefore advisable to choose a life insurer with a good record in settling claims without unnecessary delay or much drama.
Amount of benefits on offer
You may be seeking to cover your family’s living expenses or your children’s school fees when taking life insurance. However, using the same premium, company X may offer slightly more benefits than company Y for the same term. Let us assume that you’ve already done a background check on these two companies and you’ve found out that they have the desired reputation. In this case, I will recommend you should get insured by company X because it offers you more or better benefits.
The financial stability of the insurer
As a senior, your dependents may not have an opportunity to recover after you pass on in case your insurer becomes bankrupt. If your insurer goes out of business after paying them the premiums for quite some time, your children will probably get into problems.
For example, if your policy was to cover for your children’s education and you’re already dead, there’s a risk of them not getting the quality of education you envisioned, or even dropping out of school altogether. On the other hand, if you had covered their living expenses and the company goes down, your minors will swing to poverty. Therefore, take a policy with an insurer that’s A-rated, at worst.
Beware & Remember:
A simple mistake while choosing a company to give you life insurance can be the difference between your children living a near normal life after you’re gone or otherwise. It’s therefore, crucial to carefully consider several factors when making this life-changing decision.
These factors include the insurer’s capability to settle your dependent’s claim, their financial worthiness, the number of benefits attached to the life policy they offer, the amount of monthly premiums you can afford to pay, the age brackets the company covers, and so on.
By looking at these factors, you’ll conclude the best possible company to insure you for life. Unlike with other insurance policies, with life insurance, you have not much time left to gamble with the future of those you leave behind when your curtains come to a close.
You have the key to choosing how your dependents continue with life after your death; do not squander the opportunity to things right.