Affordable Life Insurance for Seniors

If you’ve heard one piece of advice about term life insurance for seniors, it’s probably this one: buy as early as possible. In years past, there was a steep difference in price for shoppers in their 20s and 30s as opposed to shoppers age 55+. But now, with so many new policy options to choose from, getting affordable coverage for older applicants is possible, too.

We’ll dive into more detail below, but as a quick summary, the best seniors life insurance companies will depend on your goals:

• Looking for a simple policy with low premiums? Many of our clients choose term life insurance even when they’re in their fifties.
• Looking to cover a specific expense, like final expenses or estate taxes? Whole life insurance for seniors (which never expires) is your best bet.
• Have health issues but still need coverage? Final expense insurance for seniors is designed to accommodate those who have some health issues, though the premiums will be higher.

Before You Shop: Identify Your Coverage Needs

If you’re between the ages of 50 and 80, your needs are completely different than those of a family with young children. Instead of covering the cost of raising kids, you’re concerned about retirement, medical expenses, outliving your income, and possibly leaving a legacy for your family or favorite charity.

Knowing your financial objectives before you shop will help you decide how much coverage you need. Here’s why our current clients told us they’re looking for best life insurance for seniors:

• Pre-paying funeral expenses 
• Providing for a spouse or family member who depends on your income
• Paying outstanding debts
• Covering or off-setting estate taxes for your heirs
• Making a large donation to a charity or alma mater
• Pay off the remaining mortgage balance
• Leaving a legacy behind

If any of these reasons apply to you, you’re in the right place! We’ll help you find the most affordable life insurance rates for seniors.

Need help? Call 1-800-521-7873 now!

Before You Shop: Set Your Budget

There’s usually a trade-off between the amount of coverage you want versus how much you can afford. We’re here to help you find a policy that hits the sweet spot – enough coverage to achieve your goals at a reasonable price, all from the best life insurance companies for seniors.

We recommend you set a budget before you call us or get a quote. This will help you make an informed decision when two policies seem similar – but the math may tell a different story. For example, let’s say you find two viable options for term life insurance for seniors:

A) $20,000 policy for $10/month

B) $30,000 policy for $30/month

Which should you choose? If you think you’ll need this policy for 10 years, here’s what you’ll pay:

A) $10 per month x 12 months = $120/year x 10 years = $1,200
B) $30 per month x 12 months = $360/year x 10 years = $3,600

For the first policy, you’ll have paid 6% of policy’s face value in 10 years.
For the second policy, you’ll have paid 12% of the policy’s face value in 10 years.

The first policy delivers more value, even though you get a bit more coverage with the second.

Okay, so now you know what to look for to stay on budget. Next, let’s look at our most popular policy type, term life insurance for seniors.

Whole Life Insurance for Seniors

Term life insurance is the most affordable option if you’re in good or moderately good health. When picking a term (usually 10, 20, or 30 years), think about your life expectancy. If you pass away during the term, your beneficiaries will receive the death benefit. If you die after the term, they won’t receive that payout. Yes, it’s possible to buy another policy – but you’d have to requalify. And since age and health are the primary drivers behind qualification, that may be hard if you develop health problems later. When it comes to affordable life insurance for seniors, we recommend buying as long a term as you can afford for this very reason.

What Goals Can Seniors Achieve With Life Insurance?

Income replacement: When you’re nearing retirement, your coverage can protect those last few years of your potential income generation so your spouse can retire on schedule without worrying about finances if something happens to you.

Pay off the mortgage: If you have payments remaining, buying a term that covers what’s left can give your family peace of mind. If you passed away, they’d have the money to pay off and stay in that house.

Pay medical bills and other outstanding debts: If you’re already having minor health issues, a term policy can ease the pain of future medical bills left behind for your family. Your death benefit can also ease the burden of any outstanding debts you have outside of medical bills.

All these situations lend themselves to short-term policies for seniors. There are many insurers that offer 10-15 year terms to cover these transitional periods of your life.

Need help? Call 1-800-521-7873 now!

Whole Life Insurance for Seniors

Whole life offers permanent coverage options with locked-in premiums. Because it’s permanent, you can’t outlive it (unlike a term policy). And in addition to providing a death benefit, whole life also builds cash value. When you make a payment, most of your money goes to pay for the death benefit. A small portion accumulates in your cash value account, which grows with interest over time. Later, once cash value has accumulated, you can borrow against the policy. If you die with an outstanding loan, the amount will be subtracted from the death benefit given to your beneficiaries.

What Can Whole Life Insurance for Seniors Accomplish?

Minimize estate taxes: If you’re wealthy and know your heirs will be hit with an estate tax, you can buy a policy in the expected amount of that tax.

Leave a legacy no matter when you pass: Because whole life doesn’t expire, it provides peace of mind no matter your financial goals. The person or entity you want to leave a legacy for will get it no matter when you pass away. Term policies can’t provide that guarantee.

Donate to charity: Some of our wealthy clients use whole life insurance for seniors to leave an amount to their favorite charity. They simply name the charity as the beneficiary of their policy. We can help you set this up if you’re interested.

Affordable Alternative #1: Guaranteed Universal Life Insurance for Seniors

Guaranteed universal life (GUL) combines features of term life and whole life insurance. Instead of selecting a term length, you select the age up to which you want to be covered (up to 121). And while there is a cash value portion, it’s much smaller than traditional whole life policies. Because it’s less expensive than whole life, it’s a good fit if your age has priced you out of the term life market but whole life is too expensive. The good news? You can still buy a GUL policy in your 80s.

Affordable Alternative #2: Final Expense Insurance for Seniors

This is one type of whole life insurance for seniors that we recommend to many clients on a tight budget. Final expense is one of the best life insurance options for seniors. It’s actually a type of whole life insurance, but with a small death benefit that usually ranges from $2,000 – $25,000. It’s intended to cover final medical bills and funeral expenses. To apply, you only have to complete a brief health questionnaire form. You won’t have to take a medical exam.

Need help? Call 1-800-521-7873 now!

Do You Need Additional Riders?

Riders on a policy offer additional benefits. Think of them as upgrades – you can buy them and add them to your policy, but you don’t have to. They provide additional protection against health situations like disability, critical illness, or the need for long-term care.

Riders are a smart way to hedge your best against the need for additional coverage due to an illness or disability. Here are just a few of the things riders can help do:

• Postpone or cancel premium payments if you get hurt and can’t work
• Allow you to access part of the death benefit if you’re diagnosed with a critical illness
• Allow you to access part of the death benefit if you need long-term care

When you get a quote on a website (including ours), the rate you see won’t include any paid riders. If you’re interested, give us a call and we can go over the riders available from the best life insurance companies for seniors.

Pro Tip: We advise our older applicants to strongly consider adding a long-term care rider to your life policy for that extra protection.

7 Best Life Insurance Companies For Seniors

Based on our clients’ needs, these are the best life insurance companies for seniors. Their policies combine affordability and helpful features (including riders).

1. AIG

• AIG’s best product for seniors is guaranteed universal life with a 2-year graded benefit.
• The maximum coverage amount is $25,000.

2. Assurity Life

• With Assurity, you’re covered the day you sign the agreement.
• Maximum coverage is up to $50,000 if you are under 65. After that, your coverage amount goes down to $25,000.
• For more information, read our Assurity life insurance review.

3. Legal and General Life (Banner)

• Legal and General (Banner) offers some of the most competitive life insurance rates for seniors.
• An excellent company providing standard and substandard table rate classes.
• For more information, read our Legal and General life insurance company review.

4. Prudential

• Their underwriting guidelines make them a favorable choice for seniors.
• Affordable premiums for people with health issues and pre-existing conditions.
• For more information, read our Prudential Life Insurance review.

5. Transamerica

• Offers some of the best term life insurance for seniors.
• Products with some of the lowest rates for seniors aged 75 and older.
• For more information, read our review on Transamerica Life Insurance Company.

6. Mutual of Omaha

• A stable company with good ratings and financial standing.
• Offers term life insurance with death benefits ranging from $25,000 to $300,000.
• Guaranteed universal life (GUL) is available up to age 65 with no medical exam.
• Final expense insurance plans are also available with a death benefit up to $40,000.

7. Protective Life

• Offers customized plans for seniors.
• Various permanent policy options available with relatively low face amounts.
• For more information, read our review on Protective Life Insurance Company.

Sample of Life Insurance Rates for Seniors: Age 55

**Monthly premiums for a 10-year term life insurance policy for seniors, Preferred Plus rating class, all rates subject to change

What Affects Life Insurance Rates for Seniors?

Health and age are the two most important factors affecting policy rates for seniors. The older you get, the more premiums increase for every type of policy.

Age: To the insurer, everyone who buys a policy represents a risk – the risk that they’ll have to pay out on the insured’s behalf. A 20-year-old presents a lesser risk; chances are they won’t pay out on that 20-year-old’s death for many years. But if you’re 60, you present a higher risk that they’ll need to pay out soon. That’s why your rates are much higher than someone in their 20s or 30s.

Health: Insurers assign every applicant a rate class. Your health affects which rate class you’re assigned, which ultimately affects your premiums. For example, if you’re overweight, you won’t qualify for the Preferred rate, which is the least expensive rate class. If you have a medical condition such as diabetes or high blood pressure, you may be assigned to a sub-standard rate class. But just because you have some health issues doesn’t mean you’re out of luck – far from it. Since every insurer has their own set of underwriting guidelines, they all look at particular health conditions a little differently. That’s why it pays to shop around and get quotes from multiple companies.

How Can a Life Insurance Agent Help?

We’ve worked with the nation’s top-rated insurance companies for so long that we know which health conditions they rate more favorably than others. If you have a few health challenges and need coverage, call us – let us point you toward the carrier who will offer you the best life insurance rates for seniors!

Give us a call at 1-800-521-7873 today!