Senior Life Insurance Guide
Life insurance works as a financial safety net for people with dependents and pressing financial obligations, providing the peace of mind of knowing that your family will be taken care of when you are gone. If no one depends on you financially and youre only looking to cover funeral expenses upon your death, then you may be able to do so with savings. Another alternative to consider is a final expense insurance policy, which we will discuss below.
If, on the other hand, you have grandchildren or adult children with disabilities who depend on you financially, want to leave a donation to your favorite charity, or cover estate taxes for your loved ones, then a life insurance policy may be the way to go.
The types of life insurance available to seniors are the same ones available to everyone else, albeit at higher pricing. This cost difference is because the likelihood youll die in any given year increases as you get older, and insurers set premiums accordingly. This guide walks you through the different types of life insurance to help you decide which, if any, should be part of your retirement plan.
Avoid Graded Death Benefit Life Insurance
Its best to have life insurance that pays the full death benefit from day one. Therefore, youll want to consider a traditional life insurance policy and avoid a senior policy that has graded death benefits.
With a graded death benefit policy, your beneficiaries wont get the full death benefit if you pass away from a non-accident cause within the first two or three years of owning the policy. For example, if you die from pneumonia a year after buying life insurance, a graded death benefit policy will pay your beneficiaries only a refund of the premiums you paid with some interest. If you die in an accident, such as a car crash, these policies will typically pay the full death benefit any time.
Life Insurance For 75 Years Old Male
| Term |
|---|
| $3,513.49 |
As you can see the increase from age 75-79 is about 200%.
In addition, you want to be conscious of the fact that most carriers maximum entry age for life insurance is 75.
So it is important to get affordable life insurance for 75 year old females or males as soon as possible.
Above all, talk to an independent agent like the specialists at PinnacleQuote.
They know which carriers specialize in over 75 life insurance.
So whether you are looking for the best life insurance for 74-year-old man or life insurance for a 78-year-old woman, we will put you in the best position.
The bottom line, the best life insurance for people over 75 is still affordable.
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What Is The Best Life Insurance For Seniors
Want help navigating life insurance?
If you’re an older adult, you might think life insurance is beyond your grasp, simply too expensive, or too difficult to qualify for. It turns out, that’s not always the case. In fact, there are a variety of life insurance policies that accommodate seniors. This article explains some of the key points you need to know when deciding which policy is right for you.
When Does It Make Sense For Seniors To Buy Life Insurance Policies
You should seriously consider purchasing a policy if you want to provide for children or a spouse after you die, need to cover funeral costs, pay off a mortgage, or provide a fixed amount of money for any other purpose.
Of course, the younger you are, the more options you have.
As you approach 80, many of those choices will disappear as carriers are often reluctant to sell insurance at a reasonable cost to people in that age group.
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How Can I Get Money Out Of My Life Insurance Policy
If you have a cash value life insurance policy, you can withdraw money from it, take a loan against the cash value, or surrender the policy for the cash.
You could also sell the policy in a life settlement transaction. Read more about these ways to tap life insurance for cash.
Term life insurance policies, on the other hand, dont have a cash value component, so theres no money inside the policy to access.
Can I Obtain Health Insurance If Im 70+ Years Old
There is a myth that surrounds the life insurance world that says seniors of the age 70 or older cannot obtain new life insurance coverage from any insurance company due to their age and/or decreasing health with pre-existing conditions. This is not the truth whatsoever. Life insurance for any senior over the age of 70 is obtainable and affordable, as long as they know how and what to look for.
Working on your own to find the right life insurance for seniors over 70 can be quite difficult . If youre thinking of looking into life insurance and youre over the age of 70, find an independent agent who can help you find the right policy for you!
MORE ADVICE
While term life insurance is the most common life insurance on the market today, it is not the best option for seniors over the age of 70.
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Best Companies For Affordable Life Insurance
On top of the underwriting factors listed above, one of the biggest keys to finding affordable life insurance is comparing multiple companies. While all companies use the same factors, they dont all weigh them the same way. That means one company might offer a much lower life insurance quote than another.
So which companies offer the most affordable life insurance? Take a look at some average life insurance rates by company below.
Monthly life insurance rates by company for 30-year old male vs. female, 10-year term, $100,000 death benefit
| Company |
|---|
| Thrivent Financial for Lutherans | $14.02 |
As you can see, the cheapest life insurance company for a male at either age is different from the cheapest option for a female. Of course, your rates will vary based on personal factors and will go up with age.
You can still get affordable life insurance over 50, and term life remains a cheap option. However, as you age, you will eventually find that you dont qualify for standard term life. Affordable life insurance for seniors over 65 is harder to find, although there are companies that cater to the senior market.
How We Came Up With This List
In looking at the best life insurance for seniors, we considered a number of factors, hoping to provide a variety of options that could potentially fit with a variety of situations. We took into account price, medical exam requirements, customer service, ease of application, and other factors likely to be of importance to you. With this list, youre likely to find something that fits your needs for insurance.
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Voluntary Accidental Death And Dismemberment Insurance
If you would like additional AD& D protection, you can buy Voluntary AD& D Insurance for yourself and your dependents. This is in addition to the Basic AD& D coverage. You will pay the full monthly premiums.
- Benefit will be paid for dismemberment if the loss occurs within 180 days of the accident, provided you or your dependent was covered on the date of the accident and meet the established criteria. Accident could occur at work or elsewhere.
- Coverage is available at low group rates, no questions asked.
- The benefit will be based upon your salary with a maximum benefit for employees of $60,000. Premiums will be for the coverage level that you have.
- You must enroll in Edison.
- Additional benefits include:
Life Insurance For Seniors Over 75
If you are over 75 years old, your life insurance policy may not be as expensive as it was when you were younger. There are a few factors that can affect the cost of your policy, including how much time has passed since you reached the age of 75. Additionally, your age and health history may also impact the cost of your policy.
If you are considering getting life insurance for seniors, do your research to find the best policy for you. Make sure to ask about discounts and exclusions that may apply to senior citizens. Also, be sure to schedule a consultation with an insurance agent who can help guide you through the process.
Types of Life Insurance Policies
There are a few different types of life insurance policies that seniors can buy. The three most common types of policies are fixed term, universal life, and variable term.
Fixed-Term Life Insurance Policies: Fixed-term life insurance policies are typically around 10-15 years long. They have a set price, which will not change throughout the policy period. This means that if the policy owner dies before the end of the term, their policy will likely be canceled and they will not receive any money back.
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How Much Does A Senior Whole Life Policy Cost
There are two available coverage levels for DreamSecure Senior Whole Life Insurance that have been designed with affordability in mind $10,000 or $15,000. We can help you choose the option that works best for you.
For example, an eligible 60-year-old non-smoker can buy $10,000 of DreamSecure Senior Whole Life Insurance for under $40 a month thats less than $1.50 a day! Talk to your American Family Insurance agent to find the policy that fits your life and budget.
Consider Life Insurance Riders
Life insurance riders can provide additional financial security to your coverage. Inflation riders, for instance, can help boost your life insurance policys value to keep pace with inflation. And a family income benefit rider allows your family to receive a steady flow of monthly income in the event of your passing. Its important for seniors to review the different types of riders offered by life insurance companies to see if any options are worth pursuing.
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Aarp Whole Life Insurance With No Medical Exam
Permanent life insurance policies, particularly those that have no medical insurance, consistently have higher premiums. Given this, we also would not recommend the AARP and New York Lifes simplified issue whole life insurance unless you have a pre-existing condition that would preclude you from passing a medical exam. However, if youre a senior and have had a medical condition for over 2 years thats well managed, such as diabetes, their whole life insurance policy is a strong option.
The AARPs no medical exam whole life insurance policy is a form of final expense insurance , as the amount of coverage available is usually just sufficient to cover end-of-life expenses. AARPs whole life insurance policy offers $5,000 to $50,000 as a death benefit and is available if youre between the ages of 50 and 80. While this is certainly enough to cover a funeral and minor debts, it is likely not be a large enough death benefit to cover your mortgage. So, if you have large outstanding debts, you would want to consider other insurers.
In addition, AARPs whole life insurance comes with two riders that offer financial assistance in the case you become disabled or ill:
Life Insurance For Children
Take the first step towards a financial head start for your child or grandchild Your childs policy builds cash value for the future.
Benefits never canceled or reduced Once approved, your benefits will never be reduced or canceled regardless of changes in age or occupation.
Rates are guaranteed to stay the same for life The monthly rate is based on your childrens or grandchildrens present age and is guaranteed to stay the same for the rest of their life.
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At What Point Do You Not Need Life Insurance
The only time seniors wont need life insurance is when theyre financially independent. If youve grown your wealth impressively before you aged, you might not need life insurance.
But its still advisable to invest in a good life insurance policy, especially those that pay dividends to policyholders.
Best For Senior Healthcare Workers: Massmutual
- Recommended for ages up to 80
- Costs approximately $4 a day for males and $2.50 a day for females of a perfect health rating for a 20-year term life policy at the age of 65 with $100,000 of coverage
- Offers term, whole life, universal, and guaranteed acceptance life insurance
MassMutual is one of the best insurance company options for seniors who are also healthcare workers. During the coronavirus pandemic, MassMutual is issuing a free life insurance policy through the HealthBridge program. It covers a three-year term policy worth $25,000 for applicants 18 to 50 years old, and $10,000 for those 51 to 60 years old.
To qualify for this form of life insurance for seniors, you need to have a yearly annual income of $250,0000 or less and be a doctor, nurse, or other listed health practitioner. In addition, you must be an American that works or volunteers for a minimum of 10 hours a month at a hospital or clinic that tests or treats patients with COVID-19.
MassMutual offers online applications and you might qualify for instant approval. However, those who have health concerns might need to go through some extra steps in order to finish their registration process for a life policy.
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Senior Life Insurance Sample Rates By Age
If youre not financially stable or have too many financial obligations, getting life insurance is a great idea- especially if youre a senior.
Different factors affect the rates anyone would pay as a premium. However, this section would only examine how your age as a senior affects your premium rates.
How Do Health And Age Affect Seniors Life Insurance
Your health and age can determine your life insurance premiums. If your health isnt considered good or average for your age, you might pay higher premiums for your insurance. Additionally, the older you are, the more likely you are to pay higher premiums. This is because the life insurance company knows that its more likely to pay out on your policy before youve paid enough in premiums for it to be profitable.
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Best For Seniors Over : Aarp
pros
Offers low-cost policies for minors
Online quotes with transparent pricing
cons
J.D. Power : 771.5* AM Best Rating: A++* NAIC Complaint Index: 0.16*
MoneyGeek’s Take: AARP offers different policies with guaranteed acceptance and does not require a medical exam, making it the best option for seniors over 70.
Company Description: If youre over 70 years of age, AARP is MoneyGeeks top pick for your life insurance provider. The company offers life insurance policies with guaranteed acceptance without a medical exam requirement. Policies are underwritten by New York Life, one of the oldest and most reputable providers in the life insurance industry.
AARP offers three types of life insurance plans level benefit term, permanent and guaranteed acceptance. The best feature of AARPs policies is that you do not need to undergo a medical exam to qualify. For the companys guaranteed acceptance life insurance, you also arent required to answer health questions.
With the level benefit term life plan, you can get up to $100,000 coverage. However, you cant choose your term, and the policy expires when you turn 80. The Permanent Life plan offers you up to $50,000 of whole life coverage, so your premiums never increase.
If you opt for the guaranteed acceptance plan, you wont be asked medical questions or required to pass a medical exam, but coverage is limited to $25,000.
*These scores are for New York Life, the company that underwrites all AARP life insurance policies.
How We Chose The Best Term Life Insurance Companies For Seniors
To ensure that we provide you with the best possible options, we researched and considered many different aspects of the providers offerings and the customer experience, including:
- Cost of coverage
- Changes in costs over time
- Diversity and availability of term policies
- Age restrictions
- Ability to convert to whole or permanent life insurance
| Starting premiums* | |
|---|---|
| Strong financial ratings, some refundable policies | |
| USAA | |
| 75 | Easy conversion from term to whole life |
*Premiums for term life insurance plans of 20 years, ranging between $100,000 and $250,000 in coverage . These are the lowest available premiums actual premiums will vary based on age, location, health, and other factors.
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Protecting Families With Burial Or Funeral Insurance
The purchase of burial or funeral life insurance is a practical way to feel more confident knowing you are not going to leave unfinished business when you die.
The purchase of burial or funeral life insurance is a practical way to feel more confident knowing you are not going to leave unfinished business when you die. You dont want to leave bills that can become a burden on your loved ones. Since you know that death is an eventual reality, it is natural to feel as though there is a need to protect your loved ones after you are no longer there to care for them. For example, as a parent you may worry that your children will have to delay their plans to attend college in the event of your unexpected death. Additionally, you may be concerned your family members will need time to decide if they would want to continue to live in their present home. Whatever it takes to assume financial responsibility does not end when your life ends. All of these things and more are common concerns that cause many people great worry.
Your survivors will still have concerns about everyday living expenses as they continue to live without you. You cannot change that however, you can help provide financial support with the purchase of a burial or funeral life insurance policy. While your family members are grieving, they can avoid making quick decisions like where they will live. They can use the proceeds from a burial or funeral life insurance policy to help make mortgage payments.