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No matter your age, life insurance for seniors is incredibly important especially for everyone who want to provide financial coverage for their families. Financial security can bring joy at any age, including senior years when you may be looking to add an extra financial safety net to your personal finance planning.
Whether you need life insurance to cover your funeral or want to make sure your spouse is supported in retirement, you can typically find the coverage you need at affordable rates.
Life insurance is one of the most trusted ways to provide for loved ones after you’ve passed. But deciding which policy is right for you can be challenging.
What kind of senior life insurance should you have? How much is enough? What’s the best life insurance to have at your age?
What is the Best Life Insurance for Seniors in the US?
When looking for the best life insurance for seniors, it’s important to ask the following questions:
• The right coverage I need?
• What kind of life insurance do I need
• The best policy for my family?
• How much can I afford?
• Will I get approved for the policy I want?
Even if you believe your dependents are adequately cared for, life insurance may still be worth considering because your family may need to pay estate taxes, end-of-life medical bills, and burial costs.
You can start answering these questions by reviewing your financial situation.
For example:
- Do you have a spouse, kids, or anyone else who is dependent on you?
- Do you have large bills like a mortgage or car payment that would need to be paid when you’re gone?
- If anyone in your life depends on you financially, you should consider a policy to protect them from unforeseen costs.
Determining how much coverage you need depends on a variety of personal factors, including your marital status, the size of your family, your debts, assets, and your end-of-life goals.
As a rule of thumb, the Wall Street Journal recommends purchasing coverage equal to 8 t0 10 times your income. If you have life insurance through your employer, the coverage may not be enough and may terminate when you retire.
Don’t forget to factor in other costs as well: funeral expenses, debt repayment (such as your mortgage, car loans, and credit card debt), and any medical bills associated with your passing.
You may also want to leave a financial gift for your spouse, children, or to charity. Your needs will change as time goes by, so periodically review your policy and check that it meets your financial needs.
Buying New Life Insurance for Seniors in the US
If you didn’t purchase life insurance in your 20s, 30s or 40s and are hoping to get a policy now in your 60s or 70s, you might find yourself in a tough position. Life insurance quotes increase as you age, and any health problems you’ve developed will make it more difficult to find an affordable policy.
For example, a $100,000 whole life insurance policy for a 60-year-old in excellent health costs about $257 per month, according to rates from Quotacy, a life insurance brokerage. The same whole life policy for 30-year-olds costs just $72 per month.
At 60, you might be better off just saving the $3,000 or so a year you would have paid to an insurer for a whole life policy. You’d have more control over your money and more direct access to the funds you save while you’re alive.
The downside to this approach is that, if you die sooner rather than later, your heirs won’t get a life insurance death benefit, which might be much larger than the amount you’ve saved up in just a few years.
You also might be able to sign up for a term life insurance policy if you’re generally in good health. While whole life coverage lasts a lifetime and can increase in value, temporary term life coverage is usually much cheaper.
A healthy 60-year-old can qualify for $100,000 of life insurance with a 20-year term for between $38 and $52 per month, according to Quotacy.
If you’re not in good health, you may have to consider guaranteed issue life insurance. This generally offers more expensive coverage but without the possibility of rejection.
A $25,000 guaranteed issue policy would cost an average of $144 per month for a 60-year-old. However, if the policyholder dies within two years of buying the policy, the insurance company generally won’t pay the full benefit and may refund the premiums paid only.
Best Life Insurance Companies for Seniors of 2022 in the US
We evaluated dozens of life insurance companies to help you compare offers. The top-rated companies made it into our Best Life Insurance Companies for seniors in 2022.
Northwestern Mutual
Northwestern Mutual offers long-term, complete and comprehensive life insurance policies, although not all products are available in all states, however most policies can be tailored to the rider.
To register, you must undergo a medical examination. Northwestern Mutual can issue policies to applicants who are 85 years old (70 for life insurance).
Insurance coverage options start at $50,000. It is possible to convert a term life policy into a permanent policy without paying fees or undergoing a medical examination. Northwestern’s lifetime policy can pay you dividends, although it’s not guaranteed.
Mutual of Omaha
Mutual of Omaha ranks second in the highest life insurance category and can be rated 4.0 out of 5.
The company offers a wide range of insurance options, including time, full and global connectivity.
One option is life insurance for people between the ages of 45 and 85 (50-85 in New York) with a maximum coverage of $ 25,000.
There are only a few Mutual of Omaha life insurance products that offer online insurance, but you can pay your bill online and all bonds must be purchased by a real estate agent.
Transamerica
Transamerica was established as a bank in 1904, and Transamerica was established to provide life insurance, annual and other financial services.
The company sells full-time and universal life insurance options. One of the lifetime options is the Final Cost Policy which can cover end-of-life expenses such as funerals.
Transamerica’s Trendsetter Super Series Life option is available to users up to the age of 80, and its Universal Index Life option can be extended to applicants up to the age of 85.
You cannot apply for Transamerica Life Insurance online, but you can find a local agent using their website. The company provides online estimating, document delivery, courier service and automatic payments.
AIG
AIG is ranked No. 4 with a score of 3.9 out of 5. AIG offers term life insurance, universal life, and guaranteed issue whole life insurance policies.
The latter could be of particular interest to seniors. The acceptance is guaranteed between the ages of 50 and 80 and no health questionnaire or medical exam is required.
Available in coverage amounts of $5,000 to $25,000, the guaranteed issue policy is designed to help with final expenses, such as funeral costs or debts.
The company lets you manage your policy online, including bill pay, information updates and e-messaging with customer service representatives.
New York Life
New York Life ties for the No. 5 spot in our Best Life Insurance for Seniors rating with a score of 3.8 out of 5. It offers term, whole, and universal policies.
Its three term policies can be converted to a permanent life insurance policy. However the company website doesn’t specify what type of permanent policy options the policies may convert to.
Its whole life policies can also earn dividends, and while the company touts that it has paid dividends continuously since 1854, this is not guaranteed.
In Conclusion
If you’re below 80 or fairly healthy, you should be able to qualify for term or guaranteed universal life insurance policies that offer low rates for the elderly. However, if you have certain pre-existing medical conditions, guaranteed whole life insurance may be your best option for coverage.
No matter your age, you should still evaluate life insurance policies according to your goals and your family’s financial needs, as these are critical to determining your best coverage.
Depending on your age and health, you may have fewer options for life insurance as a senior. If you’re below 70 and in good health, there aren’t any significant restrictions.
You may just have to broaden your search to a wider set of companies. Bearing in mind that some insurers will restrict the age group that can purchase a particular product.
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