The older you are, the more expensive life insurance will be. It’s as simple as that. As far as life insurance companies are concerned age is like a disease, at least in the sense that the older you are the more likely you are to cash-in your policy.
As a result, it can be tricky to find affordable life insurance if you are a senior. In this guide to the best life insurance for seniors we look at the best options at your disposal to help you find something that is suitable for your needs and your budget.
How Much Does Life Insurance for Seniors Cost?
The sooner you get life insurance the better, because the older you get the more expensive it becomes and if you add lifestyle choices like smoking, as well as medical conditions like diabetes to the mix then those premiums could be far too high for this to be a viable option for you.
To give you an idea, if you were to get a 10 year term life insurance policy at 50 years old then you could expect to pay anywhere from $20 to $80 a month depending on the insurance policy and a number of other factors. If you leave it for just 5 years then that price grows by between 50% and 80%. If you were to leave it until you were 70 years old then you can expect to pay anywhere from $200 to $500 a month, potentially even more if you have several medical conditions, you are a man and you are a smoker.
Life insurance usually stops when you are 80 and many companies may not take on anyone who is over the age of 70. But there are those that will allow you to purchase 10 year term life insurance policies when you are 79 years old and in these cases the premiums can be anywhere from $600 a month to over $2,000.
And that’s without looking at whole life insurance, which is more expensive, and without extending that term to 20, 25 or 30 years. If life insurance is something you are considering then don’t waste time, don’t let those years fly by, because while leaving things until later will save you a few months or years worth of payments, the overall cost of those payments will be much higher when you do eventually signup.
Guaranteed Universal Life for Seniors
If you are a senior then Guaranteed Universal Life is pretty much the best type of life insurance at your disposal. It sits somewhere between term and whole life insurance polices in both value and fees.
Known as GUL, this life insurance is designed to outlive you and ensure that a cash-sum is paid out on your death. It tends to be the preferred life insurance for the majority of seniors and there are a number of great options out there, as discussed below.
Best Guaranteed Universal Life Insurance for Seniors
- New York Life: The policies don’t go very high as the lowest death benefit here is just $25,000, but they have a number of other benefits to make it worth your while. They have no-exam insurance, flexibility with regards to the death benefit they provide, and they are also partnered with the AARP.
- American National: This is a very affordable option, but one that still offers a host of benefits. However, if you are a heavy smoker or drinker don’t expect much sympathy here. There’s a good chance you won’t even be accepted.
- Banner Life: Some great benefits and a very quick and easy underwriting process makes this a sound option for any senior looking for quality life insurance.
- Lincoln Financial Group: Often praised for their customer support and their quick and easy underwriting process, this is a great option for any senior and one that offers a wealth of benefits.
Whole Life Insurance for Seniors
Whole life insurance gives you coverage for the rest of your life, which means it will pay out and your family will get money when you pass. However, this leads to some very expensive premiums and in reality this is not a good option for seniors, even if they are in good health.
Best Whole Life Insurance for Seniors
As we mentioned above, this isn’t the best option for seniors as it can be very expensive. However, if you want to push ahead with this option anyway then we would recommend taking a look at the following companies and the whole life insurance policies for seniors that they offer:
- Northwestern Mutual
- State Farm
Term Life Insurance for Seniors
Term life insurance is a great option for seniors in good health. It works on a set number of years and pays out if you die in that period. If you live beyond it then you will not get anything.
The problem with term life insurance for seniors is that the premiums can be high if you are above the age of 65 (much more than they are at 50 or 55) and if you live beyond that period then your family will never see any of that money.
Best Term Life Insurance for Seniors
- New York Life: They have great options with many life insurance types and along with their GUL option they also have very affordable term life insurance aimed at seniors.
- State Farm: One of the biggest names in the insurance sector, State Farm have decent customer support, some high-paying policies and some affordable options to make them accessible.
- Amica Life: Another great option that provides affordable term life insurance for seniors.
More Life Insurance for Seniors
There are other options as well, with different types of life insurance we haven’t covered and many different policies and companies we haven’t covered either. We listed the best above, and the ones we think will suit the most of our readers, but we would advise discussing this issue with the life insurance company to see if there is anything better suited.
You can also take a look at our guides on the Type of Life Insurance available right now as well as Insurance with no Medical. You may also find some answers to any questions you have in our Life Insurance FAQ.