Choose The Best Policy Available
This is why its really important that you weigh your options and get a policy that is the best for you. If you simply get a policy that is less expensive or has options that, in the long run, will not be beneficial to you. Bottom line, down the road you will probably regret it. Decide if you should go with Permanent Coverage vs Term Life.
Choosing The Length Of Your Term Life Insurance Policy
A primary consideration for whether or not term life insurance will be a good fit for you is your age.
While each carrier is different and age limits are subject to change, the following is a general guideline for age cutoffs. The right side is the maximum term you can likely get for that age.
| Age | |
| 58 years old | 30 year term |
If you are on the younger end of this spectrum, you should consider how long you need coverage. A 60-year-old person with 2 younger kids and a spouse who does not work, may need a longer term than someone that same age with no dependents.
Note: As we get older, the cost of term life insurance will increase, just as it will for all forms of life insurance.
How We Chose The Best Life Insurance For Seniors
With so many contenders in the life insurance industry, we wanted to pick companies that appealed to seniors and offered great plans and benefits with little-to-no restrictions. To do this, we evaluated each company using three factors: age/benefit limits, plan, and rider availability, and nationwide availability.
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Mutual Of Omaha Life Insurance Company
With Mutual of Omaha, you can add up to $25,000 to provide to your familys financial safety. This can be done with no medical exam and its GUARANTEED!
You can now secure coverage and add $3,000, $5,000, $10,000, even up to $25,000 in life insurance coverage for your familys financial protection.
- There is no medical exam is needed
- Coverage is available for ages 45-85
- Your policy is guaranteed!
Mutual of Omahas coverage offers a few important guarantees that provide you exceptional value:
1. Your life insurance benefits will NEVER decrease due to your age or changes in health status.2. Your life insurance rates will NEVER go up as you get older or if you were to develop health issues.
Lets look into two of Mutual of Omahas most popular plans:
What Could Happen To Benefits Beyond 2023
Future COLAs may not be as large as the much bigger increase anticipated for 2023.
If there is a recession, that could prompt inflation to transition to deflation, where prices go down, Johnson said.
In the midst of the Great Recession, a 5.8% COLA was announced in 2008 that went into effect in 2009. But the following two years had a 0% adjustment to benefits.
It could bring the insolvency date forward a year sooner.Maya MacGuineaspresident of the Committee for a Responsible Federal Budget
“We could possibly be in for something like that if we do go into a recession,” Johnson said.
A higher COLA in 2023 will put additional pressure on Social Security’s trust funds, which already face an estimated 13-year time horizon for the ability to pay full benefits, the Committee for a Responsible Federal Budget said in June.
A much-bigger COLA will add tens of billions of dollars to the program’s liabilities, Maya MacGuineas, president of the Committee for a Responsible Federal Budget, told CNBC.com at the time.
“That will cost the program enough money that it could bring the insolvency date forward a year sooner,” MacGuineas said.
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What Does Aarp Life Insurance Offer For Seniors
If you are considering purchasing AARP life insurance, you can choose between these insurance plans:
- Level Benefit Term Life. Benefits range from $10,000 to $100,000. Applicants must be less than 74 when signing up or renewing, and ends at age 80. You must contact New York Life directly to raise the total benefit.
- Permanent Life. This whole life insurance policy has a death benefit range of $5,000 to $50,000. It ends at age 95.
- Guaranteed Acceptance Life. This whole life insurance policy ends at age 95. Its death benefit ranges from $2,500 to $25,000.
All three are no medical exam life insurance policies and can be converted into permanent life policies. All you need to do is contact New York Life and answer a few questions.
A successful application for the Level Benefit Term Life and AARP Whole Life policies depends on accurate health information you provide New York Life Insurance Company.
If you apply for the Guaranteed Acceptance Life policy, you do not need to answer health questions. However, you will pay an extra mortality risk fee.
Your life insurance quotes are always free.
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Best Term Life Insurance For Seniors
If youre a senior under 70, you may still qualify for term life insurance coverage. Unfortunately, the most youll qualify for is a 10-year term. This means youll pay for life insurance for 10 years and then the policy runs out. If you dont die in those 10 years, then your policy cancels and youre left older and without life insurance.
Compare and buy
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Determining Factors Behind Rates And Coverage
The rate that a life insurance policyholder pays is based on several factors, the first of which is the risk of mortality taken on by the provider. Insurance providers are taking a chance that their policyholder will die before the total premiums he or she paid cover the death benefit. Each life insurance company uses a different underwriting methodology to arrive at the rate that will adequately cover any individual. This underwriting likely considers all current policyholders, the estimated amount of death benefits that the provider will need to pay during the upcoming year, health status, age, smoking habits, income, and a wealth of other personal and financial details.
Interest on investments is another factor that helps determining coverage rates. Providers offer policies to millions of people, and for many of them, it is their sole investment. One way that providers guarantee they have the financial ability to handle such responsibility is by wisely investing policyholder premiums.
Top 10 Best Life Insurance Companies For Seniors
Here are the Top 10 life insurance companies for senior citizens. (Actually we have 13, but Top 10 sounds better!
Here are, what we believe, are the best life insurance companies for seniors. Lets look a little deeper into these life insurance companies for seniors and why they are in our top 10.
They offer whole life insurance, term life insurance and life insurance riders that will fit your needs. The following life insurance companies are considered the very best of life insurance providers for those who are age 65 plus.
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What Is The Oldest Age You Can Get Life Insurance
There is no widespread rule that all insurance agencies follow when it comes to age limits on life insurance. Senior citizens, or adults over 50 years of age, are generally still eligible for starting new life insurance policies or expanding their coverage. While an individual senior life insurance company may set age limits on certain financial products, a senior who is considering life insurance should determine for themselves whether a policy is a valid investment given their stage in life, financial standing, and intentions for the policy. Seniors should also keep in mind that the premium for a life insurance policy can increase with age.
Life Insurance Living Benefits For Seniors
Depending on the insurer, some life insurance policies either include “living benefits” or give you the option to add these through riders. Living benefits is how policy features are described that can offer financial assistance while youre still alive. Some of the most commonly offered living benefits are:
- Accelerated death benefit
- Accidental death and dismemberment
- Waiver of premium
An accelerated death benefit rider simply gives you the option to receive a portion of the death benefit early if youre diagnosed with a qualifying illness. This option can be incredibly valuable as a senior if youre concerned about your ability to cover medical expenses that are common later in life. Just make sure the insurer will accelerate the death benefit for a variety of illnesses, and not just those that are terminal.
The amount of money youre able to receive as an accelerated death benefit will be capped as a percentage of the death benefit or dollar amount. This figure will be deducted from the death benefit your family receives when you pass away. So, if you had a $500,000 death benefit and your insurer capped the amount you could accelerate at “the lesser of $250,000 or 75% of the policys face value”, you could request up to $250,000 while still living.
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Top 10 Best Life Insurance Companies For Seniors In 2021
Based on your situational need and product selection its time to find the best company for you.
The best life insurance companies for seniors are trustworthy, reputable and established, and have an affordable product which matches your need.
Your focus is likely permanent coverage, so you want this company to be around when your survivors need the benefits you paid for. This could be decades from now.
A companys financial strength ratings are helpful, but theyre only one piece of the puzzle.
There are also more subtle nuances to consider, like whether you want a specific kind of rider, or if you are buying for estate preservation versus strictly minimal death benefit.
However, the carriers we recommend can often serve more than one need. Just because you dont see a carrier listed below doesnt mean we wont offer their product to you, if the shoe fits, so to speak.
Given these parameters, weve done a lot of the legwork for you.
Here are our top 10 best life insurance companies for seniors this year:
What If You Cant Pay Your Premiums
If you have a life insurance policy in place and cant pay your premiums on the billing date, you have a 30-day grace period to make a payment before they cancel your policy. Under special circumstances, they might extend this period.
Life insurance premiums are one of the core elements of a life insurance policy, so its important to understand how theyre determined and how they fit into your budget. Get some free life insurance quotes to see which coverage options fit your familys financial needs.
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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
Cheap Life Insurance For Seniors
We monitor many life insurance companies to locate the cheapest life insurance for seniors based on their health and unique planning needs.
When applying for life insurance, older adults with pre-existing medical conditions should always fully disclose their diagnosis to their agent.
We represent many niche insurers and can use our insider knowledge to direct you to the company specializing in your pre-existing medical condition.
We have chosen highly-rated life insurance companies that offer the best financial ratings, underwriting fairness, and inexpensive rates.
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How Much Are Life Insurance Rates For Seniors
Those buying life insurance in their 80s can pay over $1,000 a year for a $10,000 or $20,000 final expense or guaranteed issue policy. So youll skip the medical exam in exchange for high rates on low coverage.
Most insurers stop offering term life insurance at 75 or 80 years old, and permanent policies stop around age 75. However, each insurer has its own approval guidelines, so you may get approved with one insurer and not another.
Choosing The Right Coverage Amount
Below well show you a few of the reasons seniors typically purchase term life insurance to help you understand what type of coverage you might need.
Some seniors only need $5,000 in coverage to help with final expenses, while others may want up to a $1 million policy to leave a legacy for their family.
Life Insurance to Cover Final Expenses
Once major debts have been taken care of by your death benefit, you want to also consider the expenses for funeral and burial. Funeral and burial costs in the United States range between $7,000 to $12,000.
Thats why having a plan to pay for burial expenses and purchasing burial insurance for seniors becomes even more important.
Consider the Living Expenses of Your Spouse or Dependents
Next, you want to take into mind how much money your spouse or dependents will require to be able to live comfortably in the absence of your income.
If you are both already retired and receiving income from pension or retirement plans, this shouldnt be a problem. If you are still working, however, you should consider how much of your income they need in order to maintain their current lifestyle comfortably when choosing a policy.
Term Life Insurance Helps Other Family Members
Lastly, how much do you want to leave for your children, grandchildren, and other family members?
Account for Your Other Financial Assets
Also, your current financial condition greatly impacts your decision.
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Advantage Plus Whole Life Insurance
- Traditional Whole Life Insurance
- Fully underwritten policy which requires an exam
- Death benefits range from $25,000 to over $1 million.
- Level death benefit coverage
- Final Expense Whole Life Insurance
- You can apply between the ages of 50-85
- No medical exam required up to age 85
- Coverages from $2,000 to $35,000
- 3 benefits available: Level coverage , Graded benefit and Modified
- To qualify for level death benefit you will need to answer no to all qualifying questions
- A graded death benefit is determined by any yes answers to the application
For more, see our Foresters life insurance company review
Do I Need Life Insurance After I Retire
If you have enough savings to cover funeral and burial expenses and dont have any dependents, you may not need life insurance. Depending on what you want to do with the policy and how much it would cost you to get insured based on your age and health, you may be better off self-insuring or purchasing a different kind of policy than a life insurance one.
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How To Choose The Right Life Insurance Company
The best life insurance companies offer the type of policy you need at a price you can afford and meet the following criteria: An A or above rating from AM Best, few customer complaints, the policy features you want, and a manageable application process.
Rates For Seniors Over 50
Depending on your exact age, life insurance for seniors over 50 options sometimes include 10, 20, and 30-year term life insurance plans.
Below are sample monthly term life insurance rates for a 50-year-old in great health. These rates are for $500,000 of coverage.
| Term |
|---|
| N/A | N/A |
As you can see, traditional term life insurance quickly becomes very expensive very quickly as you get older. Thats why there are other types of life insurance available.
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How To Shop For Senior Life Insurance
Shopping for senior life insurance doesnt have to be hard! Its easy to get overwhelmed with the amount of life insurance companies offering coverage, the types of policies available, and the ways you can customize your coverage. Before you start to get overwhelmed about shopping for life insurance, review these steps so you know what to expect. This is the best way to shop for senior life insurance.