Do We Really Need Life Insurance
The best way to determine whether life insurance is right for you is to think about your familys quality of life and how much it costs you to maintain. Youll also need to consider any future changes in your situation as well, such as retirement or downsizing. On top of that, it can be a good safety net for any unexpected setbacks that could come your way. For example as we get older, we may have a slightly higher risk of developing certain illnesses, so its always wise to be mindful of our health and wellbeing .
Even if youre not the main provider, its worth thinking about the changes that your family would need to make if you were no longer around. Many of us care for our grandchildren while their parents work, but if that option were no longer available, they may need to take on expensive childcare costs or even quit their job.
If you think any of these changes could potentially disrupt your familys plans or quality of life after your death, then it may be worth looking into life insurance for that extra security and peace of mind.
Over 50 Life Insurance
For some age is just a number, but the fact of the matter is, that as we age, our needs for life insurance also change and health conditions tend to creep up as one gets older. The good news is that for seniors, the life insurance market has evolved over the years and has better plans today that cater to those over 50. It is now easier for you to get coverage that suit your needs, financial situation and even your health condition. Are you afraid that your health condition may mean difficulty getting life insurance and/or have been denied coverage in the past? Dont be. Our range of cost-effective seniors life insurance plans can meet your needs.
As a trusted leader in the No medical and Simplified Issue Life Insurance industry, our goal is to offer you compassionate service and affordable life insurance solutions. We are experts in helping those over the age of 50 get covered. Most of our plans are No Medical which means no needles or medical exams required. We make it simple and straightforward, and you can be covered within days. Apply now for a no-obligation quote for life insurance for seniors over 50, and protect the financial future of your loved ones today.
Is Aarp Term Life Insurance A Good Deal
AARP term life insurance can be an excellent option for many people. After over 150 years in business, they consistently rank among the best life insurance companies available.AARP New York Life provides term life insurance to seniors between the ages of 50 and 74. You can get small policies of $10,000 as well as larger ones up to $100,000. The entire time you have the policy, you dont have to worry about your death benefit changing either.
Unlike many other term life insurance companies, AARP also doesnt make you take a medical exam before they decide to cover you.There area few disadvantages to AARP, though they may not be significant concerns to everyone considering a term life insurance policy with them. For example, if you purchase a term life policy at age 50, your premium will go up every five years from that point.
That means that by the time youre 75, if you still have the same policy, you could be paying significantly more.Additionally, your coverage expires once you reach 80 years old.
That doesnt mean you cant purchase whole life coveragethey do offer that optionbut you may pay a much higher rate for it. They dont guarantee prices on their life insurance either, so you wont know what you pay every five years until they inform you that your premium is increasing.
Overall, they are an amazing company but there are much better options if you are looking for life insurance as a senior.
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Best Final Expense For Seniors: Aig
pros
Does not require a medical exam for all policies
Guaranteed acceptance for some policies
cons
Does not offer online quotes
COMPANY HIGHLIGHTS
J.D. Power : 737.2 AM Best Rating: A NAIC Complaint Index: N/A
MoneyGeek’s Take: Since AIG does not require a medical exam and offers guaranteed acceptance for most policies, its the best choice if youre looking for final expense insurance.
Company Description: If youre looking for an insurance policy to cover your funeral and burial expenses, AIG is MoneyGeeks top choice. The company offers a wide range of flexible policies and multiple rider options, and some of the policies offered do not require a medical exam and have guaranteed acceptance.
With AIGs guaranteed issue life insurance plan, you get lifelong coverage up to $25,000 and dont need to pass a medical exam or answer any health questions. This plan offers you guaranteed acceptance if youre between 50 and 80.
AIG accidental death insurance provides your family with $500,000 worth of coverage in case of your death or serious injury in an accident. If youre between 18 and 80, you dont need a medical exam to qualify.
This provider also offers quality of life insurance, which can provide financial support to your loved ones while youre still alive. Your beneficiaries can access these living benefits if youre diagnosed with a chronic illness, critical illness or terminal illness.
Policy Types Offered:
How Much Does Senior Life Insurance Cost
In general, the cost of any insurance is directly proportional to the risk the insurer is willing to assume by offering you a policy. With life insurance, the higher your risk of dying, the more expensive your premiums.
Many different variables go into calculating premiums, so its hard to offer ballpark figures without knowing the specifics.
What you pay for your life insurance policy will depend on your:
- Type of life insurance policy
- Amount of coverage or its value
- Health status and family health history
- Occupation and hobbies
One of the most important of these factors is age. While there are still life insurance options available up to age 85, the older you get, the more expensive your premiums will be.
Underwriting Process
The underwriting process is meant to assess your life and risks as an applicant. Since life insurance companies price risk differently based on their underwriting guidelines, results and resulting premiums always vary.
Because underwriting can be so varied, its recommended you get at least three life insurance quotes from different companies before settling on an insurance policy. Another alternative is hiring a broker to shop around, though this will mean paying for their services.
Riders
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Should You Still Get Life Insurance As A Senior
For seniors, even the most affordable life insurance policies can have high premiums. Seniors are closer to reaching their life expectancy and may have health issues that shorten their lifespan. The sooner a company thinks it will pay out the policy, the riskier you are to insure, which increases how much you pay for life insurance. If youre a senior and can finance your final expenses, you may not need to take out a life insurance policy at all.
Get life insurance if you:
- Still have debts, like a mortgage, auto loan or student loans.
- Are retired with debt.
Since insurance rates vary by company, its best to shop around and compare rates.
Dont get unnecessary coverage.
If youre looking for cheap senior life insurance, do not add non-essential riders to your policy.
Before getting a life insurance policy, consider your needs and financial obligations to understand how much coverage you will need and avoid adding non-essential riders to your policy. Its also a good idea to talk to a financial advisor who can help you find a policy that fits your needs.
MoneyGeek analyzed different life insurance companies to help you find the cheapest companies offering term and permanent life insurance policies. While a life insurance policy can be an excellent investment, it may make sense to forgo coverage depending on your circumstances. If youre looking for cheap life insurance for seniors, its best to shop around and compare quotes from different providers.
Best Final Expense Insurance For Seniors
Founding Year: 1909BrochureSample PolicySample Application
Mutual of Omaha Living Promise is a simplified issue whole life insurance policy meant to cover your final expenses.
Eligibility is based on answering some basic health questions. The application process does not require a medical exam.
A final expense life insurance policy typically pays out a tax-free cash benefit within 24-48 hours.
That gives your loved ones the funds necessary to pay for the cost of a cremation or burial.
Your beneficiaries can spend the money on anything- not just the funeral costs.
Mutual of Omaha offers a high amount of coverage and low monthly premiums.
Most applicants qualify for the immediate coverage plan. Plus, every policy includes an accelerated death benefit rider at no extra charge.
To qualify for their burial insurance for seniors, you must work with an insurance agent. You cannot buy this policy online.
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AAA guaranteed issue life insurance is a whole life policy with no health questionnaire.
They will not decline you due to any pre-existing medical conditions.
Guaranteed acceptance is the best type of life insurance for seniors who have uninsurable medical conditions such as Alzheimers, renal failure, or congestive heart failure, to name a few.
In other words, you should buy a guaranteed issue policy only when you cannot qualify for products that ask questions about your health.
AAA is usually the least expensive provider of guaranteed acceptance coverage.
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Companies With The Cheapest Term Life Insurance For Seniors Who Smoke
Since smokers have an increased likelihood of developing lung disease and other health conditions during their lifetimes, life insurance providers consider them high-risk individuals and offer them higher premiums. For example, a life insurance policy for someone who smokes can cost as much as 283% more than one for someone who does not.
Transamerica offers the most affordable life insurance policy for senior smokers at an average cost of $667 per month. Mass Mutual offers the second-cheapest option at $753 per month, and Mutual of Omaha is the third-cheapest company for smokers, with average rates of $756 monthly.
Companies With the Cheapest Term Life Insurance for Seniors Who Smoke
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Expected Costs Over 50
When you reach age 50, you can expect to pay for life insurance. Youre more likely to pass on, and your health is also more likely to begin declining. As a result, you might end up paying more for life insurance. In many cases, you can expect to pay anywhere between $40 and $75 per month for a $500,000 policy with a 10-year term. Longer terms or higher coverage amounts come with higher premiums.
Your age, health, and other factors will determine how much you pay in premiums. But, in general, you can expect to pay more than your younger counterparts.
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Dont Be Sold On Policy Projections That Arent Guaranteed
Life insurance policies that can build cash value will have policy illustrations that show projections for costs and cash value over time. For some types of cash value policies, not all amounts shown in an illustration are actually guaranteed.
Beware of advisors offering policy reviews comparing non-guaranteed premiums, cash values and/or death benefits for some limited number of products, says Barry Flagg, founder of Veralytic. These sales practices are now considered misleading, fundamentally inappropriate and unreliable by the financial, insurance and banking industry authorities.
Insist that quotes include year-by-year disclosure of costs, often referred to as detailed expense pages or policy accounting pages, says Flagg. Work with an advisor who will explain whats guaranteed and whats not.
Insurance agents and advisors should be able benchmark a policys internal policy costs and historical performance against the insurers peers, just like you do for other assets in your portfolio, says Flagg.
Need Help Getting Life Insurance Coverage
If you have a pre-existing medical condition and want to buy life insurance, you will need help from an expert. This person can help ensure you get coverage, so you dont get declined.
Warning: Applying for life insurance without a medical exam can be risky. If you get declined coverage, it could be at least two years before buying life insurance in the future.
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How We Chose The Best Cheap Life Insurance For Seniors
While its easy to find the cheapest insurance policy, we looked for more than just premium price. When choosing the best affordable life insurance providers for seniors, we considered the following:
- Low premiums: We looked into life insurance providers that offered flexible premiums without annual increases.
- Policy types: Insurance providers vary in terms of short- and long-term insurance coverage, additional riders, and other death and critical illness benefits. We examined the financial strength of insurance providers and researched whether they provided a variety of universal life, whole life, and term life policies. Typically, term life policies tend to be more affordable than permanent policies.
- Age ranges: Although its always a good idea to look into life insurance policies earlier on in life, its not impossible to find a life insurance policy if youre older. When researching policies, we looked into providers that offered flexible issue age limits beyond age 70.
- Financial stability: We researched each providers ratings from AM Best, a credit rating agency that evaluates the financial strength of insurance providers.
- Customer service: When youre searching for a life insurance provider, customer service is an important factor to consider. We ranked and looked into life insurance providers that educate their customers and provide honest information regarding quote-related financial resources.
Reasons You Need Life Insurance As A Senior
Term life insurance is most often geared towards younger consumers who are in the thick of paying off debt, buying a home, establishing a career, and raising a family. But that doesnt mean you dont need life insurance once youre in your fifties, sixties, and beyond.
Here are a few reasons you might:
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Do Seniors Need Life Insurance
This question comes up a lot, and, in most cases, the answer is yes. Having a life insurance policy is one of the safest ways to ensure your loved ones will be financially secure when youre gone. Certain types of life insurance can accrue cash value that you can withdraw if and when the need arises. These withdrawals can even help pay for medical bills that Medicare does not cover or similar living expenses. That doesnt mean, however, that every older adult should rush out and buy life insurance right now.
Did You Know: As of 2020, 54 percent of all individuals in the U.S. were covered by some form of life insurance1.
Many seniors live on a fixed income through Social Security and do not have the resources to add a life insurance plan. You will need to consider your budget and the cost of available plans when making a decision. Moreover, if you do not plan to leave death benefits to a beneficiary, you probably dont need a life insurance policy.
How Does Term Life Insurance Work
Term life insurance is pretty straightforward. You choose the length of time you would like coverage and pay a monthly premium. If you outlive your coverage, you often have the option to renew your plan or convert to a whole life policy. However, some carriers do not grant either of these benefits. So, if you outlive your coverage, you will not get any payout.
Unlike many whole life insurance policies, term policies do not have the ability to accrue cash value. Instead, they simply provide the possibility of a death benefit payout if you do not outlive the term of your policy. Like a whole life policy, you can choose the amount of your death benefit. Death benefits vary widely, with some as low as $5,000 and others as high as $10 million.
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Seniors Insurance: Expert Summary
Seniors are looking more into life insurance now more than ever before. An increasing number of seniors have more debt than they had before. Seniors are carrying mortgages where they may have not before. So, these are all factoring into things that have them look into life insurance.Now, with life insurance for seniors, you gonna wanna make sure that you work with a broker who can find the right solution because some companies may offer different solutions for a 60-year-old or 70-year-old that other companies may not. And there are different types of policies for seniors. There are Traditional plans where they are fully underwritten where you have to do the whole series of medical tests and have to answer a lot of questions and then there are No Medical type policies where there are no medical tests and can be a short series of questions.
If you are looking into a No Medical type policy, you gonna wanna make sure you find a plan where you can answer No to as many questions as possible cause its gonna result in you paying the better price.
How Much Cover Should We Get
Your cover amount, payment frequency and beneficiaries can be personalised based on your, and your familys, specific needs, so its important you consider your own financial situation to establish how much cover you might need. You should discuss your options with your family to find out what type of costs they would have, such as a mortgage, household bills and loan payments.
Here are some key things to consider when setting a cover amount:
- whether you are currently working
- how long until you retire
- any personal savings, investments, or other forms of income you have
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