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? The days of thinking life insurance is unaffordable for seniors are long over. Today, there are more options than ever to help accommodate healthy seniors and find a plan that covers your needs while remaining affordable.
Life insurance policies for seniors vary from company to company. Getting coverage can involve taking a medical exam (also called a life insurance exam) or just answering health questions. Life insurance costs anywhere from $15 a month to several hundred dollars a month, and the benefit can be used for everything from paying off large debts like a mortgage or covering small bills like funeral costs.
How Life Insurance Companies Determine Pricing
There are reasons that senior life insurance quotes can rise as a person’s age does. Life insurance companies base their coverage rates on the customer’s health, including age.
As humans age, their health begins to decline, which means a greater risk for life insurance companies taking on older clients. To help offset this greater risk, life insurance companies charge higher premiums, meaning less risk for them.
While other insurance types might take a person’s location into factor, life insurance won’t. However, life insurance does take other unique factors into account, such as a person’s occupation and, yes – their health, for better or worse.
What is the Best Life Insurance for Seniors?
When looking for the best life insurance for seniors, it’s important to ask the following questions:
- How much coverage do I need?
- What kind of life insurance should I get?
- What kind of policy is best for my family?
- How much can I afford?
- Can I get approved for the policy I want?
How to Decide Which Policy Is Right When 65 and Over?
Deciding on the right policy will take some time. It’s important to ask questions and research thoroughly to find which policy is best depending on unique needs. For example, an affordable final expense plan may be the answer for someone without many assets or dependents to support. On the other hand, someone with a family and debt may need to choose a whole or term policy to fund all needs in the event of their death.
Term Life Insurance Cost for 65-Year-Old
Term life insurance is an alternative to a whole policy. It only covers a set amount of time, known as a “term.” Once the end of the term has been met, a person will lose their coverage.
At that point, they will need to renew or shop for a new policy. Because there is no guaranteed payout as the term may expire before death, this option is less expensive.
Example: A healthy 65-year-old male can expect to pay just under $54 for their monthly premium on a 10-year term policy. This rate is compared to $16 a month for a 25-year-old. The shorter the term, the less expensive the policy can be.
Permanent Life Insurance for 65-Year-Old
If life insurance seems too expensive when reaching that 65-year mark, it may be worthwhile to shop for alternatives. One option for those over 65 is a whole life insurance policy, also referred to as permanent life insurance. It’s more expensive than term life, but the benefit of permanent life insurance is that it offers a guaranteed payout.
That’s important for seniors who want to make sure life insurance is there to pay for their funeral expenses, make sure a partner or a child with disabilities has money to live on after they die, or have other permanent financial responsibilities.
Example: A person who is 65 can expect to pay roughly $90 per month for whole life coverage. Keep in mind that this estimate is for a healthy individual and does not take into account any health ailments or other factors.
Life Insurance Quotes for Seniors
Fidelity Life can help those 65 and over find a senior life insurance policy that fits their needs, including their budget. First, applicants can provide information online to help match them with a life insurance policy that meets their needs. Then, applicants can select the policy and get a quote online, or a licensed agent can help with the application and purchasing process.