Best Life Insurance for Seniors

You may hear it a lot of times, get the best life insurance rates when you are young and healthy. It is because the rates that you get when you are 30 are way cheaper than the rates that you get when you reach 55. But now with so many life policy options to choose from, getting affordable coverage for young as well as older applicants is possible.

Many people look up to term life insurance even when they are in their fifties. The low premiums and simplicity of the product make it one of the best choices for people of all ages. However, if you are looking to cover your final expenses or estate taxes, then getting a whole life insurance is a good option. Guaranteed acceptance life insurance is for those who have some health issues, though the premiums will be quite higher.

No matter what product you choose, getting the best value for the price is equally important. You will need to get quotes from multiple insurers, compare the premiums and then select the company that provides the best value for the price.

Before we start discussing different types of life insurance options for seniors, lets narrow down the main objective of getting a life insurance in the first place. Choosing the right policy will help meet your needs, but picking the wrong one can bring problems in later life.

Why Is Life Insurance so Important for Seniors?best life insurance for seniors

The need for life insurance is different for every individual. A young couple will have completely different needs than someone aged 60 and older.

Therefore, knowing your financial objectives before getting an insurance coverage will help you in deciding which policy to go for and how much coverage you need. Here are a few reasons why seniors should consider buying a life insurance policy:

  • Pre-paying funeral expenses 
  • Spouse or a family member depends on your income
  • For paying outstanding debts
  • Estate taxes
  • Thinking of giving a large donation
  • Remaining mortgage balance
  • Leaving your legacy behind

If any of the above reasons apply to you, and you are interested in knowing the details, give us a call right now.

How to Find the Best Life Insurance Rates for Older Applicants?

When buying life insurance for seniors, the most important factor to consider is the price. Choosing the policy that has comparatively low premiums for a good amount of death benefit, one that is enough to cover your needs is a wise decision.

Knowing your budget is also important. Make an informed decision by making sure how much you will be paying for your monthly premiums and whether you can afford it or not.

For example:

There are two policy options for a burial policy:

A $20,000 policy that cost you $10/month, or
a $30,000 policy for $30/month, which one is a better value?

The first policy. Even though the coverage is $1000 less for the second policy, you will only be paying a mere $10/month that is quite affordable.

Different Life Insurance Policy Options for Seniors

Now that you know your needs and budget, the next step is to figure out what type of policy meets your needs to the closest. Let’s discuss the different types of senior life insurance policies:

Term Life Insurance:

Term life insurance is the most affordable option for most people including seniors if they are in good health. But there is a risk when purchasing term life at an older age…the risk of outliving the policy. Since term life insurance only provides temporary coverage for say (usually 10 to 30 years with 5-year increments), there is a good chance of outliving your policy term and then qualifying for a new coverage may not be possible due to your age. If you die during your term period, your beneficiaries will receive the death benefit. If you die after the term period ends, they will get nothing.

When Should Seniors Consider Buying Term Life Insurance?

Income replacement: When you are nearing your retirement, you may want to purchase some coverage to protect those last few years of your potential income generation so that your spouse may retire on schedule without worrying about finances in an event if something happens to you.

To pay off the mortgage: If you still have some payments remaining to pay off your house then buying term life insurance for the remaining mortgage period will give confidence to your family that they will have the money to pay off the house in an event of misfortune.

Medical bills and other outstanding debts: If you are concern about your health then getting some form of temporary coverage can ease the pain of your spouse from paying huge medical bills later. Also, any outstanding debts or financial obligations that you fear can put a burden on your family should be protected by using some coverage.

If you need term life insurance, and if you can get it, make sure you’re getting the right policy. We recommend getting short-term policies for seniors. There are many life insurance companies that offer policies for 10-15 year terms that can cover the timespan you are looking for.

Have some questions? Feel free to contact our specialists. They will be glad to answer any of your queries.

Whole Life Insurance

Whole life insurance offers permanent coverage with guaranteed premiums. In addition to providing a death benefit, whole life insurance also accumulates cash value that you can use to borrow against the policy. If you die with an outstanding loan, it will be subtracted from the death benefit given to your beneficiaries. Also, the policy’s cash value remains with the company after your death.

When Should Seniors Consider Buying Whole Life Insurance?

  • To minimize estate taxes
  • To leave some legacy behind no matter when they die
  • For charity purposes

Guaranteed Universal Life Insurance

Guaranteed universal life insurance has combined features of Term life insurance and Whole life insurance. Mostly these policies are designed to have fixed premiums that are guaranteed to last up to 121 years of age but you can modify it to last until the age of your choosing. There is no cash value component, for this reason, the premiums are not too high like whole life insurance. Guaranteed universal life insurance is a great option for seniors who are looking to leave some legacy behind for their loved ones, or looking to paying their final expenses, estate taxes, any other outstanding debts or simply repaying their children who will take care of them in their older age.

Final Expense Insurance

Final expense insurance 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 ranges from $2000-$25000, enough to cover your funeral expenses. For more details visit our Final expense insurance page.

You are only required to answer a few questions on a health questionnaire form. There is no medical exam or any such requirement. Yes, burial life insurance policies are a bit expensive but if you don’t have enough savings and you fear your death will bring a huge financial burden on your loved ones then taking this policy will make your life easier.

How to Choose a Policy That is Right For You?

Choosing the best life insurance coverage for older applicants depend largely on the purpose of the policy. Why are you purchasing the policy? To pay off the debts, to cover funeral expenses or are you thinking to leave a beautiful legacy behind? The answer to this question can help you and the life insurance agent to decide which policy is best for you. Budget and health conditions are also influencing factors in the decision-making process.

Do You Need Additional Riders?

When you go car shopping, do you buy just the base model or you look for additional upgrades like a navigation system, power locks etc? The same case is with the riders. They offer you additional benefits along with the policy of long-term care and financial aid when struck with a critical illness etc. Adding these riders to your financial basket can really enhance the benefits provided by a life insurance policy alone.

8 Best Life Insurance Companies For Seniors

1. AIG

  • The best product offered by Aig for seniors is guaranteed universal life insurance with a 2 year graded benefit.
  • The maximum coverage amount is $25000

2. Assurity Life:

  • Start getting the coverage the day you sign the agreement
  • Maximum coverage is up to $50000 if you are under 65. After that coverage amount goes down to $25000.

For more information read our post on Assurity life insurance review

3. Banner Life

  • Offers competitive rates for seniors
  • An excellent company proving standard and substandard table rate classes

For more information read our post on Banner life insurance company review

4. Principal

  • One of the best company in providing no exam life insurance policies
  • Maximum coverage amount is $1,000,000 for their no exam life insurance product

5. 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 post on Prudential Life Insurance review

6. Transamerica

  • With some of the best term life insurance products, Transamerica can be named as a Senior term life insurance company.
  • Transamerica also offers some of the lowest life insurance rates for seniors aged 75 and older.

For more information read our review on Transamerica Life Insurance Company

7. Mutual of Omaha

  • A stable company with good ratings and financial standing
  • Offers Term Life Insurance with death benefit ranging from $25,000 to $300,000
  • Guaranteed Universal Life Insurance is available up to age 65 with no medical exam
  • Final Expense insurance plan is also available with death benefit up to $40000

8. 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

Life Insurance Quotes for 55-year-old

**Please note that these monthly 10-year term life insurance quotes for seniors are for Preferred Plus rating class and are subject to change

Face AmountAIGAssurityBanner LifePrincipalPrudentialTransamericaMutual of

What Affects Seniors Life Insurance Policy Rates?

Health and Age are the two most important factors that affect policy rates of elderly people. The older you get, the less term life policies are available to you. The price of premiums increases for every type of policy.

Your health also affects the rate class you are assigned by your insurers which ultimately affects your premiums. For example, if you are overweight, you will not qualify for the preferred class which is actually the best and least expensive rate class. Having a medical condition such as diabetes and high blood pressure, you may get substandard rates.

Having some health issues does not mean that you cannot buy a medically underwritten life insurance. Since every company has their own sets of underwriting tables, getting affordable rates is possible from any one company out of so many. And again, it’s always a good idea to shop around and get quotes from multiple companies. This way you will be sure to get the best policy at the best price.

How Can a Life Insurance Agent Help?

There is no single best type of life insurance for seniors. When you get 55 or older, getting a specific type of life insurance is not important. The thing that really matters is why you need it in the first place. Understanding your need helps you in deciding the best coverage. As far as prices are concerned, we have your back. At LifeQuote, we strive to provide you with the most competitive rates from top life insurance companies. Just give us a call at 1-800-521-7873 and our experienced life insurance specialists will answer all your queries and guide you throughout the whole process.

Pro Tip: If you are an older applicant, consider adding a long-term care rider to your life policy for that extra protection.

Share This