These days, seniors are living longer and staying productive longer. This means that many older people find that they have not really outlived their need for a life insurance policy. Many of today’s senior citizens used to have coverage, but it may have lapsed because a term policy expired or was associated with a job that they retired from. The good news is that many top life insurance companies offer life insurance for seniors, and most older people have some good choices. We are here to help you find the best senior life insurance companies in your city or town. Begin comparing quotes online by entering a local ZIP code in the form at the top of this website. We can help you find good options for yourself, and we are also happy to help you find life insurance for your parents or children.
Term Life Insurance For Seniors
Some senior life insurance companies still offer term policies over age 70. While term provides a quick and convenient way to get relatively cheap life insurance for seniors, these are some things to remember:
- It might be possible to find up to $250,00 with no medical exam, but you still need to answer some health questions.
- Answers to medical questions may get independently verified against sources like the MIB (Medical Information Bureau) or your own doctor.
- Many relatively healthy seniors who still live independently should still qualify, but these companies might charge more or even decline applicants with serious and chronic health issues like severe diabetes or a recent history of heart problems. More routine medical issues, like managed high cholesterol and controlled high blood pressure, should not be a problem. Note that some companies will consider applicants with controlled Type 2 diabetes at standard rates.
The only problem with term life insurance for seniors is that the policies do expire after the term ends. At 50, 20 year terms might be available. By 70, 10 year term policies are most common. If the covered person survives the policy, and the insurer is betting they will, they might be impossible to renew. However, you can purchase policies that are convertible into permanent insurance without going through health underwriting again. You might know that you need coverage now, but it is hard to know what you might need in 10 or 20 years. This might be a good way to get cheap life insurance for seniors now and hedge bets for later. Another alternative might be to purchase a larger term policy and a smaller whole life policy.
Whole Life Insurance For Seniors
Yes, whole life costs more than term does for the same amount of coverage. But these policies do not expire and can even grow a cash value that can get used as an asset. Whole life can even get sold for some portion of the face value in a senior life settlement. By purchasing a small whole life policy, you may still find that rates are affordable. Small whole life policies are sometimes called burial policies or funeral insurance. That is because they are mostly intended to make sure that families have money to pay for funeral arrangements. If you have not helped make funeral arrangements lately, you should know that average funeral and burial costs in the US can top $8,000 to $10,000. However, these policies pay a cash benefit like any other kind of life insurance, and the beneficiary can use that cash in any way he or she pleases. Here are some things to know about whole life insurance for seniors:
- Guaranteed acceptance insurance for seniors: These policies require no medical exam or answers to health questions. However, they might have a waiting period of two or three years that the applicant has to survive before they will pay the entire death benefit.
- Simplified issue: These ask a few questions about health as part of the application process, but those questions are mostly intended to only weed out seniors who have terminal diseases or are already confined to long term care. They offer an immediate death benefit, more benefit choices, and cheaper premiums. Some of these are even open to applicants for life insurance over age 80.
- Face values: In either case, face values may range from $5,000 to $35,000.
Before the waiting period expires on guaranteed acceptance insurance policies, the plan may offer to pay some part of the death benefit or return premiums, sometimes with interest. The policy owner will not lose any money. They may provide a good choice for seniors who cannot qualify for insurance that requires health underwriting. However, it is better to qualify for cheaper rates and better benefits by answering a few health questions. That is why it is best to compare burial insurance plans to find the one with the right benefits and price for your own needs and budget. Everybody may get accepted by guaranteed acceptance companies, but that might not be the ideal choice for everybody.
Who Pays for the Life Insurance Premiums
Often, people in middle age to retirement age find these policies affordable. However, some seniors have to live on a very limited income, and their children may step up and offer to pay the premiums. After all, these adult children are the ones who are most likely to benefit from the death benefit after their elderly parent passes away. While it does not really matter who pays the bill, these are some things to understand about buying life insurance:
- Paying for life insurance: Set up automatic payments against a bank account to make sure that the policy does not get terminated because a bill got overlooked.
- Applying for life insurance: Even if other family members are willing to pay, the person who needs coverage must get included in the application. Some companies require phone interviews or signatures on forms.
Compare Life Insurance Quotes for Seniors
By now, you can see that there is not just one good type of life insurance for every senior citizen. While some people may need hundreds of thousands of dollars worth of coverage to protect a home, fund a business, or transfer an estate, most older folks simply want to be sure that they leave a little money behind to help pay for final expenses. Of course, some older people would like to leave a moderate amount of money to make sure that their adult children can have a little extra after funeral expenses get paid. Since burial policies may offer maximum death benefits up to $25,000 or $35,000, they can still provide a good solution.
You can find life insurance solutions for almost everybody. We can help you compare life insurance quotes for senior with our online side-by-side quote tool. We can also help you find coverage for yourself or your children. Begin by providing the quote form on this page with your ZIP code. After reviewing top life insurance companies in your local area, you are also welcome to give us a call. We use high-tech quoting tools and old-fashioned personal service to offer each of our valuable clients the right choices at affordable prices.