Term Life Insurance for Seniors

Eric Van Haaften Term Life Insurance

Finding the right life insurance for seniors only becomes necessary when their family still depends on them financially.

Term life insurance is an excellent solution for older individuals needing coverage at a reasonable cost.

Our goal is to equip you with valuable insights so that you can make an educated choice about the most appropriate term life insurance policy to safeguard your loved ones.

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Is term life insurance the best choice for seniors?
What are the different types of term insurance for senior citizens?
What kinds of life insurance riders can be added to my policy?
Which companies offer the cheapest life insurance for seniors?
FAQ: Life Insurance for Seniors

The Importance of Senior Life Insurance

Term life insurance policies have fixed premiums that do not change over the specified term. However, if you live longer than your initial term period, your premiums will increase in cost.

Alternatively, some term policies offer the option to convert into a permanent policy that provides lifelong coverage. This is usually important for older individuals blessed with above-average life expectancy.

So, term life insurance suits those requiring extended protection but not necessarily for their entire lifetime.

If you come from a family with good longevity, it might be worth considering purchasing permanent insurance instead of term coverage.

Given that people are retiring later and living longer nowadays, there are various reasons why one may need life insurance, according to Investopedia.

Senior Life Insurance Needs

Mortgage and debt protection

Mortgage protection life insurance is a policy that pays off your outstanding mortgage balance in the event of your death.

It can provide peace of mind for you and your loved ones, knowing that your family can stay in their home if something happens to you.

A level-term policy matching the duration of their home loan is the cheapest life insurance for seniors wanting to protect their mortgage obligations.

You may need a shorter-term plan to protect your spouse or heirs if you still have an outstanding personal loan or credit card debt.

Income Protection for your spouse and children

For many senior couples, income protection is paramount to financial planning. If one spouse dies, the other spouse will need to be able to continue paying the bills.

If you have a spouse who depends on your income, you should calculate how much term life coverage is needed to secure their financial future if something happens to you.

If you had children in your thirties or early forties, you might need a term life insurance policy that extends well into your golden years to protect your family.

Final Expenses

As people age, they often start thinking about their final expenses and how they will leave their loved ones financially secure.

Final expense life insurance can help cover those costs so your loved ones don’t have to worry about them after you’re gone.

A small $25,000 life insurance policy can be a good idea if you want an easy way to pay your final expenses.

life insurance for Charitable Planning

If you want to make a charitable donation that will provide lasting benefits, you could buy or donate an existing life insurance policy.

You can donate a life insurance policy to a charity of your choice, and the proceeds will support the charity’s work.

Seniors in decent health should purchase permanent life insurance to create a charitable legacy.

Life insurance for Estate Protection

Integrating life insurance into your estate planning is key to providing financial security for your heirs upon your passing.

There’s a wide array of life insurance options to choose from, making it vital to select the right type of coverage.

Nevertheless, most seniors prefer permanent life insurance to create an estate for family members.

For affluent individuals, survivorship universal life insurance is popular for facilitating wealth transfer and effectively addressing estate taxes.

Pension Plan Life Insurance

Pension plan life insurance is a popular choice among Americans with pensions who want to ensure their spouse’s financial stability after they’re gone.

Older married couples can increase their retirement income and protect their surviving partners by purchasing either term or permanent insurance coverage.

Life insurance provides peace of mind, knowing that even if the retiree passes away first, the surviving spouse will still have a reliable source of income for the rest of their life.

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Buying Tip:

Buy cheap term life insurance, which can be converted!

If you buy term coverage, ensure it is convertible, which allows you to convert term into permanent coverage.
You can convert your coverage without answering questions about your health or taking a new medical exam.
So, if you have developed any health problems during the policy term, your rate class will not change with your new permanent policy.

Term Life Insurance Rates for Seniors

Term life insurance for seniors is usually available for 10, 15, and 20-year time frames. The length of the term determines your premium and how long you will maintain death benefits from your coverage.

We encourage clients to compare term life insurance plans from different insurers to find the most suitable policy for their needs and budget.

Most people understand that the rates for term life insurance rise with age and if one has health issues.

This means that obtaining coverage could become more expensive over time or if you have medical conditions.

Furthermore, you may need to undergo a medical examination and answer health-related questions to qualify for a term life policy.

At what age can you no longer buy term life insurance?

Affordable life insurance for seniors is typically available for healthy buyers until age 80. However, most insurance companies have age restrictions for seniors, affecting the term length you can buy.

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Navigating Age Restrictions for Seniors

Age 80 for purchasing a 10-year level term
Age 75 for buying a 15-year level-term
Age 70 for selecting a 20-year level term
Age 55 for purchasing either a 25 or a 30-year term

Analyzing inexpensive life insurance options is important for Boomers who are still financially supporting their families.

By analyzing term life insurance rates based on age and the evolving needs of seniors, you can find a suitable policy that provides maximum benefits without breaking the bank.

10-Year Term Life Insurance for Seniors

A good life insurance policy for those with needs lasting ten years or less. A ten-year term policy is always the cheapest life insurance for seniors looking to cover a short-term need on a limited budget.

A small $50,000 or $100,000 term insurance policy would cover older adults while paying off outstanding credit card debt.

Wealthy senior citizens often purchase inexpensive term life insurance to protect a large salary or pay off a mortgage if they should die before they retire.

If you require substantial coverage, we encourage you to use our calculator to evaluate quick life insurance quotes.

Meanwhile, we have compiled the best rates for life insurance coverage between $250,000 and $1,000,000.

For example, a $1,000,000 ten-year term life insurance policy at 60 costs only $214 per month, compared to $610 for a 10-year term life insurance policy at 70.

What is the reason for the additional cost?

The probability of a life insurance claim is higher because your policy will run further into your life expectancy!

Ten-Year Term Life quotes for seniors.

	$250k	$500k	$750k	$1mm
Age	10	10	10	10
60	$60	$113	$171	$214
70	$173	$319	$476	$610

* 10-year term life insurance rates for senior men ages 60 and 70

15-Year Term Life Insurance for Seniors

A fifteen-year life insurance policy provides the same payments and death benefits should you pass away during the 15 years your policy is in force.

If you are in your seventies and considering a 15-year life insurance policy, we encourage you to start your plan today!

It is important to act now, as the last year to purchase a 15-year term plan is when you turn 75.

Let’s take a look at a practical example!

A $500,000 term life insurance policy for 15 years at age 60 costs only $152 per month, compared to $463 for term life at 70 years old. Notice how much cheaper life insurance is for younger buyers!

fifteen Year Term Life rates for seniors

	$250k	$500k	$750k	$1mm
Age	15	15	15	15
60	$83	$152	$226	$288
70	$236	$463	$690	$890

* 15-year term life insurance rates for senior men ages 60 and 70

20-Year Term Life Insurance for Seniors

A 20-year term policy provides coverage for a fixed period of twenty years. As people reach their golden years, the need for life insurance also tends to change.

Retirees commonly purchase insurance to cover funeral expenses, provide for college tuition for grandchildren, and cover any unexpected medical expenditures for surviving spouses.

Twenty-year term insurance may work for you, provided you do not live longer than your policy.

Although more expensive than shorter-term plans, a 20-year life insurance policy offers a happy medium between shorter-term plans and more costly permanent coverage.

A $250,000 term life insurance policy for 20 years at 60 will cost only $115 per month, compared to $407 for term life insurance at 70.

As you can see, term life insurance for seniors over 70 is getting more expensive. Dont delay because the magic cutoff age to buy a 20-year policy is 70

Twenty Year Term Insurance rates for seniors

	$250k	$500k	$750k	$1mm
Age	20	20	20	20
60	$115	$211	$322	$406
70	$407	$819	$1,227	$1,578

* 20-year senior term life rates for men aged 60 and 70

Life Insurance Rates for Seniors

It is important to consider the cost of life insurance for seniors at different term lengths and coverage amounts to make well-informed decisions.

Take a moment to find affordable life insurance options for your family from many of America’s top-rated life insurance companies.

Life Insurance Riders for Seniors

Life insurance riders are optional and usually cost extra, but they can enhance coverage and policy flexibility.

Key riders to consider include guaranteed insurability, waiver of premium, accelerated death benefit, and long-term care options.

Guaranteed Insurability: This rider allows you to increase your coverage without needing another medical exam.
Waiver of Premium: This rider covers your premiums if you experience serious illness or disability, ensuring that the policy remains active.
Accelerated Death Benefit: ADB riders grant early access to a portion of the death benefits if diagnosed with a terminal illness.
Long-term Care Rider: LTC riders pay for expenses related to nursing home care, assisted living facilities, and in-home healthcare services.

Cheap Life Insurance for Seniors

We specialize in finding affordable life insurance options for seniors, taking into account their health status and planning needs.

Older adults should be upfront about any health conditions when applying for coverage. Our independent agents will guide you to insurance companies known for catering specifically to your unique medical history.

We focus on companies with fair underwriting processes and competitive rates, many of which are recognized by Forbes as the Best Life Insurance Companies for Seniors.

Corebridge Life

Corebridge Financial, previously known as AIG, stands out in the life insurance sector. Its subsidiary, American General, provides market-competitive term insurance and top-notch universal life insurance options.

What sets American General apart is its unique offering of 18 different term lengths for policies, a feature not commonly found with other insurers.

Additionally, with American General term insurance products, you can convert them into permanent coverage until the end of the term or up to age 70.

It’s reassuring to know that Corebridge has a century-long history and an A rating from AM Best.

Lincoln National

Lincoln Financial stands out for its exceptional products and adaptable underwriting policies, catering well to individuals in good health and those with minor health concerns.

It offers attractive rates on term and universal life insurance, positioning it as a leading option for seniors of different ages.

Lincoln provides level-term insurance lengths ranging from 10 to 30 years.

Moreover, Lincoln Financial is a trusted choice with an A rating from AM Best and almost 120 years in the industry.

Pacific Life

Pacific Life is a premier choice for seniors, offering competitive rates across different age brackets.

Pacific’s term life insurance begins at $50,000 and offers term durations lasting between 10 to 30 years.

What sets them apart is their willingness to offer term coverage without a medical exam to seniors under age 70.

Having been in business for over 150 years, Pacific Life holds an A+ rating from AM Best.

Protective Life

Protective offers term life insurance policies ranging from $100,000 to an impressive $50 million in death benefits.

They are known for offering some of the most competitively priced term and universal life insurance policies in the market.

Protective Life has superior financial strength ratings, with an A+ rating from AM Best.

Transamerica Life

Transamerica provides affordable term insurance rates, making it one of the most cost-effective options in the industry.

Transamerica’s term coverage offers many choices, with coverage starting at just $25,000 and term lengths ranging from 10 to 30 years.

Additionally, for policies under $2 million, you may not need to undergo a physical exam during the application process.

We monitor many life insurance companies’ financial strength and claims-paying ability using rating agencies such as A.M Best, BBB, and JD Power.

Best Life Insurance Companies for Seniors

Company	BBB	AM Best	JD Power
AIG	A+	A	718
AXA Equitable	A+	A+	752
Banner Life	A+	A+	N/A
Brighthouse	A+	A+	N/A
Guardian Life	A+	A++	760
John Hancock	A+	A+	739
Lincoln Financial	A+	A+	744
Mass Mutual	A+	A++	780
Metlife	B-	A+	780
Mutual of Omaha	A+	A+	766
Nationwide	A+	A+	806
Pacific Life	A+	A+	N/A
Principal Financial	A+	A+	774
Protective	A+	A+	742
Prudential	A	A+	770
SBLI	A+	A+	N/A

Our team of independent agents specializes in helping seniors find affordable life insurance based on their age, health, and coverage needs.

With our convenient calculator, you can easily compare average life insurance costs from reputable companies in minutes!

We’re here to assist if you have any questions or need help finding the best insurance rates for your money. Your satisfaction is our priority.

Senior Life Insurance Rates

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FAQ: Life Insurance for Seniors

What is the cheapest life insurance for seniors? Term life insurance is typically more affordable than permanent life insurance. However, it has a limited duration and no cash value. For short-term needs, a 10-year term policy is a low-cost option.

Is term life insurance worth it for seniors? Term life insurance is good for seniors looking for a cost-effective way to cover temporary needs that will eventually end.

What kind of life insurance is best for seniors? Term insurance is ideal for short-term needs, but older seniors may find guaranteed universal life insurance more suitable and cost-effective. It offers lifelong coverage at lower premiums than whole-life policies.

Is term or whole life insurance better for seniors? Term life insurance is a more affordable choice as it provides temporary coverage. However, seniors aged 70 or 75 may find it inaccessible or expensive. In such cases, whole life insurance becomes preferable as it offers lifelong coverage.

How much life insurance should a senior get? The coverage needed depends on your financial goals, obligations, and budget. Since seniors often have multiple sources of income and specific financial responsibilities, it is advisable to consult an agent to determine the right level of coverage.

Can older senior citizens buy term life insurance? Seniors over 80 may have difficulty obtaining term life insurance. It is often recommended for them to consider permanent coverage instead.