Life Insurance for Seniors

The desire to provide for your family does not have an age limit. These days seniors are remarkably technologically savvy and are turning to the internet to compare life insurance rates to find affordable coverage to pay final expenses or to supplement income for loved ones in their golden years. The good news for seniors is that all these online options create competition between agencies and drive down prices. These competitive rates are making it easier and easier for seniors to get the coverage they need and prices they’ll love. There’s even low-cost life insurance for seniors without medical exams.

How to Find Affordable Life Insurance for Seniors

There are a few different types of insurance available to seniors. Universally, men will be charged more than females for the same amount of coverage and the same term of coverage. It seems a bit unfair, but women do tend to outlive men on average and this is the rationale behind the differentiation in rates.

There are Five Main Types of Life Insurance:

• Term Life Insurance
• Whole Life Insurance
• Universal Life Insurance
• Burial Life Insurance
• Funeral Life Insurance

Term insurance is not just cleverly named. Term insurance is a product designed to cover a portion or term of your life and is sold in 5-year increments ranging from 5-30 years. Seniors can expect shorter terms than 30 years, most likely. But, seniors up to the age of 80 should be able to secure a term life insurance policy presuming they are in reasonably good health.

Term insurance covers a portion of your life, whereas, whole life insurance covers your whole life span. Whole life insurance typically offers a significantly lower benefit and costs quite a bit more. The reason for this is that insurance companies will have to pay on whole life insurance policies and they may not have to pay out on term. Whole-life policies also build cash value with every payment. As with most insurance policies, if you cancel them you get nothing back. You don’t have to pay the premiums, but you get none of the premiums you have paid back and you have no coverage. Whole-life policies do have a cash benefit if at any time you decide to cancel your policy.

Guaranteed universal life can cover your whole life too but these policies term to your age in years rather than the number of years from when you buy it. For example, universal life policies might end at 90, 95, or all the way up to 121. Universal life does not have a cash balance associated with it, so it is typically more affordable than whole insurance.

Burial insurance and funeral insurance are both designed to cover final expenses, but that is not the same. Burial insurance covers the cost of your burial or cremation after you die. The policy pays directly to the beneficiary and the money can be used in any manner they deem fit. Funeral insurance, on the other hand, is basically prepaying funeral expenses. Funeral insurance pays directly to the funeral home and allows the policyholder the freedom to choose the kind of burial they would like to have.

Guaranteed, burial, and funeral insurance are all great options if you’re looking for low-cost life insurance for seniors without medical exams.

How Much is Life Insurance for Seniors

The price of life insurance at any age is determined by the type of coverage, pre-existing conditions/health, term of the policy, and amount of coverage. These factors are no different for seniors but they may be more limiting in the pursuit of affordable coverage. Some coverages can be as little as $10-$15 a month or north of $1000.

Seniors in reasonably good health should be able to qualify for term life insurance and universal life insurance. Whole life insurance can be cost-prohibitive, but also an option. Term policies generally will cap out at 10-20 years and if you outlive them, renewal costs can be extraordinarily high.

Burial policies and funeral insurance do not carry a medical examination and are ways to guarantee that final expense coverages are in place for those in questionable health.

The best life insurance for seniors really depends on individual health, budget, and coverage needs keeping in mind that the average funeral costs between $8,000 and $10,000.

How to Get Life Insurance After 60

Life insurance for anyone in their 60s can still be worthwhile- especially depending on how much coverage you need.

Term life insurance is going to be the most affordable option for life insurance, but it does have limitations. 60-year-olds can expect their term policies to come in 10 or 20-year increments, though 25-year policies are out there at a limited number of companies too. Term policies are a great and affordable option, however, policyholders need to be careful to have a plan in place in the event they outlive their policy.

Universal life and whole life insurance don’t come with the risk of outliving coverage, but you will certainly pay a premium for that guarantee.

The higher the coverage, the higher the premium. Term policies for a 20-year $250,000 policy would run the average non-smoker 60-year-old male around $115 a month. Females pay less at around $100 because they usually live longer which is good or bad news depending on how you look at it. Seniors can get whole life insurance in much smaller coverage increments. Whole life insurance for a $10,000 policy runs approximately $65.00 for a male and $50.00 for a female. Sure, as compared to the term life policy at $250,000 it seems like you’re not getting much for the money, but, remember, whole-life policies last your whole life. Universal life policies run about $90 for a male to have a benefit of $50,000 to age 100 and $80 for a woman. Burial policy costs are in the same ballpark as whole-life policy costs. Funeral insurance typically costs on average $35 – $50 for $10,000 in coverage but again, is a great option for those looking for low-cost life insurance for seniors without medical exams.

Can You Get No Exam Life Insurance After 70

There is definitely a jump in the price of life insurance for 70-year-olds as compared to the price for 60-year-olds. The closer you approach the end of life, the more expensive insurance becomes because the chances of the life insurance company having to pay out are exponentially higher.

Seniors in their 70s can still expect to be able to get term insurance though they will probably only offer you a 10-year policy. If you were able to swing a 20-year policy let’s take a look at how the price jumps for the same amount of coverage as what a 60-year old can get. The same policy for a senior aged 70 would run a male $500 and a female $415. Whole life insurance for a $10,000 policy costs roughly only $10 more per month than that for a 60-year-old at $75 for men and $50 for women. Universal life costs about $160 for a 70-year-old looking for $50,000 of coverage to 100. Burial policy premiums, again, run similarly to whole-life costs. Funeral insurance costs between $50-$100 to be paid to the funeral home after passing.

What do Suze Orman and Dave Ramsey have to say about life insurance?

Suze Orman and Dave Ramsey both suggest that term life insurance is the way to go. Life insurance is designed to protect people who are dependent on your income and pay final expenses. Suze Orman seems to think that your need for life insurance tapers off around the age of 65 as children are out of the home, pensions, and benefits begin to kick in, and will provide for any surviving spouse.

Which insurance company is best for me?

AARP, Gerber, Colonial Life, and Globe Life are some of the most well-known insurance companies for Seniors, but there are hundreds of options out there. Seniors can take advantage of online comparison tools by using a simple internet search. There are whole websites dedicated to putting quotes from insurance companies side by side to help seniors pick what fits their budget and needs. Seniors who prefer the personal touch of talking with an actual human over an algorithm running the numbers can pick from a myriad of insurance brokers to sit down with to discuss options.

It is important to remember that rates are not concrete and many will fluctuate based on medical examination findings. We can help you find low-cost life insurance for seniors without a medical exam.

Which Senior Life Insurance Plan Should I Pick?

The only person who knows what is right for you is you. The best place to start is determining what you can afford and what your needs are that you’d like your policy to cover. Aside from funeral expenses running about $8,000 to $10,000, are there bills you’d like to make sure are paid for your loved ones like a house, car, student loans, etc? Would you like to provide a steady income stream for your spouse? Figuring out a total amount and going from there will allow you to find what fits in your budget and get you closest to your coverage requirements.

The second but equally important step in the process is recognizing that there is possibly not only one solution to your needs. Seniors may find that a term policy combined with a whole policy or universal policy with a term fits their needs best. There is not one-size-fits-all solution.

Just because you’re no longer in the prime insuring age does not have to mean you can’t get insurance. If you’d like a free, no-obligation quote hit the quote button at the top of the page or call one of our licensed insurance agents at 800-974-0552.