Term life insurance is an excellent solution for seniors who want to secure affordable coverage to provide financial protection for their loved ones.
Our comprehensive guide will provide you with insights and tips to help you navigate the selection process.
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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.
Here’s a pro tip we share with our clients: only buy term policies that offer conversion privileges.
This feature allows you to switch to permanent coverage without undergoing another medical exam, which can be beneficial if your health changes unexpectedly.
Speaking of health, if you come from a family with a history of good longevity, we typically recommend permanent coverage that lasts your entire life.
According to Investopedia, given that people are retiring later and living longer nowadays, there are various reasons why seniors may need term life insurance.
Senior Life Insurance Needs
Mortgage and debt protection
Mortgage and debt protectionMortgage 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.
Remember other debts! We always factor in personal loans and credit cards when calculating coverage needs.
Income Protection for your spouse
Income Protection for your spouse For many senior couples, income protection is paramount to financial planning. If one spouse dies, the other spouse must 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.
Final Expenses
Final ExpensesAs 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 modest $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
life insurance for Charitable Planning Here’s a compelling strategy that our charitable clients love: using life insurance to enhance their donations.
Whether you purchase a new policy or donate an existing one, it’s a powerful way to leave a lasting legacy.
We recently helped a client set up a policy to provide a $100,000 death benefit to their favorite charity for a fraction of the cost in premiums.
Seniors in decent health should purchase permanent life insurance to create a charitable legacy.
Life insurance for Estate Protection
Life insurance for Estate Protection For our high-net-worth clients, permanent life insurance is often the cornerstone of their estate planning strategy.
Survivorship universal life insurance, in particular, has been a game-changer for many wealthy families.
We have seen it help preserve family businesses, pay estate taxes, and ensure fair inheritance distribution among children.
Pension Plan Life Insurance
Pension Plan Life Insurance We should discuss pension maximization strategies if you’re among the fortunate few with a pension.
We have helped countless couples optimize their pension elections by using life insurance to protect the surviving spouse’s income.
Purchasing either term or permanent insurance coverage allows married couples to choose a larger pension income.
If the retiree passes away first, the surviving spouse will receive a death benefit that will generate a reliable source of income for the rest of their life.
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 affordable policy.
Many people know that term life insurance rates rise as you age and if you have any health issues. This means getting coverage can become more costly over time or if you have medical conditions.
Additionally, you might be required to undergo a medical exam and answer health-related questions to qualify for a term life policy.
But don’t let that discourage you – we’ve helped countless clients with various health conditions secure appropriate coverage.
At what age can you no longer buy term life insurance?
Time is crucial when considering senior life insurance. Generally, affordable term life coverage is available for healthy individuals up to 80.
However, many insurance companies impose age restrictions on seniors, which impact the length of the term they can purchase.
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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
We have analyzed term life insurance rates based on age and the evolving needs of boomers to help you find a suitable policy without breaking the bank.
10-Year Term Life Insurance for Seniors.
We often recommend a ten-year term policy if you want to cover a mortgage or protect your income for a defined period.
A ten-year term policy is the cheapest option for those with a fixed income who want to cover short-term needs.
For example, a small $50,000 or $100,000 term insurance policy could cover older adults while paying off outstanding credit card debt.
More affluent senior citizens might purchase an inexpensive term policy to protect their income or pay off a mortgage if they die before retirement.
We work with many successful business clients who are still running companies in their 70s! They often need coverage to fund buy-sell agreements and to cover business loans.
We have compiled the best rates for life insurance coverage between $250,000 and $1,000,000.
Notice how 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.
Ten-Year Term Life quotes for Men
| $250k | $500k | $750k | $1mm | |
| 10 | 10 | 10 | 10 | |
| 60 | $60 | $113 | $171 | $214 |
| 70 | $173 | $319 | $476 | $610 |
Ten-Year Term Life quotes for women
| $250k | $500k | $750k | $1mm | |
| 10 | 10 | 10 | 10 | |
| 60 | $40 | $74 | $106 | $140 |
| 70 | $104 | $195 | $294 | $368 |
* 10-year term life insurance rates for seniors ages 60 and 70
15-Year Term Life Insurance for Seniors
A fifteen-year life insurance policy provides consistent premiums and death benefits throughout the term.
We should talk soon if you’re in your early 70s and want extended coverage. We can only secure 15-year terms for clients up to age 75, and we’ve seen too many people miss this window.
Let’s examine a practical example! A $500,000 term life insurance policy for h15 years at age 60 costs only $152 monthly.
In contrast, the policy for those aged 70 costs $463 per month. This highlights how much more affordable life insurance is for younger buyers!
fifteen Year Term Life rates for men
| $250k | $500k | $750k | $1mm | |
| 15 | 15 | 15 | 15 | |
| 60 | $83 | $152 | $226 | $288 |
| 70 | $236 | $463 | $690 | $890 |
fifteen Year Term Life rates for women
| $250k | $500k | $750k | $1mm | |
| 15 | 15 | 15 | 15 | |
| 60 | $52 | $92 | $139 | $178 |
| 70 | $156 | $297 | $444 | $544 |
* 15-year term life insurance rates for seniors ages 60 and 70
20-Year Term Life Insurance for Seniors
The 20-year term policy offers excellent value for clients seeking more extended coverage over twenty years.
As people reach their golden years, they need insurance to cover funeral expenses, pay for grandchildren’s college tuition, and cover surviving spouses’ unexpected medical expenses.
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.
We like to point out that twenty-year coverage is suitable for cost-conscious buyers, but there is always the chance you could outlive your policy.
At age 60, you can usually secure a $250,000 term life policy for about $115 monthly. Wait until 70, and that same coverage jumps to $407 monthly.
As you can see, term life insurance for seniors over 70 is getting more expensive. Don’t delay, as the magic cutoff age to buy a 20-year policy is 70.
Twenty Year Term Insurance rates for men
| $250k | $500k | $750k | $1mm | |
| 20 | 20 | 20 | 20 | |
| 60 | $115 | $211 | $322 | $406 |
| 70 | $407 | $819 | $1,227 | $1,578 |
Twenty Year Term Insurance rates for women
| $250k | $500k | $750k | $1mm | |
| 20 | 20 | 20 | 20 | |
| 60 | $74 | $141 | $207 | $265 |
| 70 | $315 | $606 | $906 | $1,099 |
* 20-year senior term life rates for seniors aged 60 and 70
Life Insurance Rates for Seniors
Life Insurance Rates for SeniorsWe’ve spent years developing relationships with America’s top-rated insurance providers, giving us access to the most competitive rates for our clients.
Let us help you compare options and find coverage that protects your family without straining your budget.
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 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
Cheap Life Insurance for SeniorsFinding the right life insurance shouldn’t be complicated. When you work with our independent agents, we’ll connect you with insurers who offer the best term life insurance rates for seniors.
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 Life (formerly AIG) stands out among our trusted partners 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 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 Life rounds out our top recommendations with coverage options starting at a $50,000 death benefit.
They are known for offering some of the market’s most competitively priced term and universal life insurance policies.
Protective Life has superior financial strength ratings, with an A+ rating from AM Best.
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 |
Whether you’re looking for coverage for a specific term or protection for the rest of your life, we’ve got you covered!
With our convenient calculator, you can easily compare average life insurance costs from reputable companies in minutes!
Senior Life Insurance Rates
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FAQ: Life Insurance for Seniors
FAQ: Life Insurance for SeniorsWhat 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 a cost-effective way for seniors 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 seniors buy term life insurance? Seniors over 80 may have difficulty obtaining term life insurance. It is often recommended that they consider permanent coverage instead.
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Affordable Life USA offers comprehensive life insurance solutions to families and business owners throughout the United States.
Our founder, Eric Van Haaften, developed his passion for quantitative analysis while earning his business degree from Ferris State University, which laid a strong foundation for his analytical approach to financial planning.
