Best Types Of Life Insurance Policies For Seniors
The best type of policy for people over 60 comes down to your health, budget and if you need a policy that lasts your entire life or just to cover you for a specified number of years.
Term life insurance is best for healthy seniors
This type of policy is generally the most affordable and offers coverage for a set period of time like 10 or 15 years. Youll be able to buy higher coverage amounts with a term policy compared to a final expense or guaranteed issue permanent life policy.
But, it requires a medical exam, so if youre not in the best health your rates are higher. Fred Hoffman, CoFounder of Seniors Life Insurance Finder, talked with Finder about term life insurance for people in their 60s.
Simply said, you only have one more chance in your 60s to acquire term life insurance. At this age, rates are still quite low, and you may still select a 10-year, 15-year, or 20-year term life insurance. But, this applies only when you are in a good shape. You may not be eligible for a term policy if you have an incurable illness or are not in excellent health.
Fred Hoffman, Senior Life Insurance Finder
Permanent life is best for seniors who need life-long coverage
A permanent policy lasts your entire life, and builds cash value over time. However, most permanent policies come with a higher monthly rate than term policies.
No-exam policies are best if you dont qualify for traditional insurance
How Do You Take Out Life Insurance On Another Persons Life
In life insurance there are various parties. These are:
- Life assured: The person whose life is insured – when they die the policy will pay the sum assured for a valid claim.
- Policy owner: The person who owns the policy and is responsible for paying the premiums and keeping the details up to date. The policy owner can be the life assured, or someone who has an insurable interest in the life assured.
- Beneficiary: The person who receives the pay-out for valid claims. There can be more than one beneficiary, and the policy owner names the beneficiary.
When you take out a policy on another persons life, they become the life assured and you become the policy owner.
So, if you have an insurable interest in your mothers life, for example, you can take out a life cover policy where you are the policy owner and she is the life assured.
As the life assured, your mother will need to answer all the underwriting questions and have any medical tests such as an HIV test. As the policy owner you need to show why you have an insurable interest. You are also responsible for paying premiums.
Best Life Insurance For Living Benefits: Prudential
Why we chose it
Prudential is also our top pick for people who want more living benefits options in a policy. Living benefits allow you to pay for qualifying medical care using part of your policys death benefit, but many riders only apply to a terminal illness. Prudentials living needs benefit rider is included at no cost and offers access to 70% to 100% of the death benefit depending on the diagnosis to policyholders who are terminally ill, expected to permanently reside in a nursing home, or who need an organ transplant.
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Considerations When Buying Term Life Insurance
Health can be a factor when it comes to securing affordable life insurance. For this reason, many seniors who have health concerns may experience difficulty in getting approved for coverage. And considering that many seniors may not have a need to buy as much life insurance as their younger counterparts, having a smaller term policy can be a good choice if a larger policy is unattainable. Fortunately, there are many different policy types, and the best way to select a policy is to discuss your many options with a qualified life insurance professional.
*As long as required premium payments are timely made.
When Am I Allowed To Buy Life Insurance For My Parents
You can typically buy life insurance for parents when you have “insurable interest.” That’s when you’re the one who will be responsible for the financial consequences of your parent’s death. Eligible financial responsibilities might include but aren’t limited to:
- Funeral services and burial/cremation costs
- End-of-life medical expenses
- Financial obligations for which you’d become responsible, such as inheriting your parents’ house and thus their mortgage
- Debts you co-signed on with your parents
- Expenses related to caring for a surviving parent
Will you be responsible for the financial consequences of their death?
Your life insurance company can help you determine exactly what qualifies you to take out a policy on your parent and how you should provide proof. However, it would likely be easier for your parents to take out a life insurance policy themselves and name you as the life insurance beneficiary, if they’re able. They’ll need to go through a similar application without the added qualification of proving your insurable interest in them.
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Universal Life For Final Expenses
Universal life insurance policies typically start at a $25,000 death benefit and are often significantly cheaper than whole life policies, which do not require a quick exam.
We have provided examples of the best life insurance rates for parents over 70, for both a $25,000 and a $50,000 policy.
Life Insurance Can Protect Your Retirement Assets From Down Markets
By purchasing a whole or permanent life insurance policy , your policy will accrue cash value as you pay your premiums. This is a source of funds thatâs typically not tied to markets and is available for you to access while youâre still alive. This can make it a powerful tool to combine with investments in retirement.
Because cash value typically wonât decline during a market correction, you could access it instead of selling investments that have lost value to generate income. This provides some cushion to ride out a downturn and wait for investments to recover before you resume selling them.
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Life Cover When You Are Young
Its important to take out life cover before you reach 65 and, in fact, as young as you can. The older you get, the more expensive your life cover starts out. What we mean by this is, if you take out cover when you are 25 years old, you will most likely pay less per month by the time you reach 40 than if you took out cover for the first time at 40. Because the life insurer must recoup the money paid out over the term of the policy, the later you take out a policy, the less time the insurer has to recover this money, so their premiums are higher the more mature a new client is.
Calculating life insurance risk
When you request a life insurance quote, the insurer will ask you multiple questions to obtain an idea of how high your risk is of passing away in the near future. These will cover various aspects of your life, such as:
Medical history: This includes the medication you take, any surgeries youve had, and diseases and illnesses youve been diagnosed with.
Lifestyle habits: Theyll want to know if you smoke, drink, and exercise.
Demographics: This includes your age and gender.
Physicaldetails: Your weight and height will be factored into any life cover quote.
Occupation and hobbies: Insurers want to know if you engage in any risky behaviour for work or pleasure.
Best Life Insurance For Parents Of 2022
- Best for Customer Satisfaction:State Farm Life Insurance
- Best for Whole Life:Nationwide
- Best for Older Parents:New York Life
Compare life insurance quotes on Policygenius from multiple providers before selecting a policy. If you’re over 55 or in poor health, you’ll be better served by calling the company directly.
- AM Best Rating:AM Best is a credit rating agency that assigns insurance companies a letter grade from A++ to D. A companys grade indicates its ability to pay its claims and honor its financial obligations.A+
- Accepts Credit Cards:Yes
Very affordable term insurance premiums
Term lengths of up to 40 years
Good selection of policy types
Can apply online
Ranked below average for customer satisfaction
Based on our review of 91 life insurance companies, Protective stands out as the best provider for parents overall. In fact, Protective also won best overall in our roundups of the most affordable life insurance companies, best life insurance companies for children, and best term life insurance companies.
Protective offers a wide range of policy types, including term, universal, indexed universal, variable universal, and whole life insurance. The only notable life insurance product missing from its lineup is final expense insurance. Plus, the company has an A+ grade from AM Best for financial strength.
However, the company didn’t fare well in J.D. Power’s 2021 U.S. Individual Life Insurance Study. It ranked 16th out of 21 companies in the study.
How Do I Choose The Best Life Insurance Company
Choosing the right life insurance company is a balancing act between how well a companys products satisfy your needs and how good that company is overall. That said, the latter may be better than the former, since the policy you own is only as good as the company backing it.
But you dont have to compromise. You just need to establish what you need and then apply a set of filters to the life insurance companies youre considering. A step-wise approach can help.First, assess your needs:
Second, get life insurance quotes from solid companies:
How To Save On The Cost Of Life Insurance
There are a few ways to lower the cost of your coverage:
- Buy a policy as soon as you identify a need for it. The sooner you can lock in a rate, the better as theyll continue to go up over time.
- Improve your health and lifestyle. If youre a smoker or have some health conditions, it could cost you. However, there are still a lot policies that have competitive life insurance premiums for those who smoke and have health conditions.
- Compare a handful of insurers. Shop around! Each insurer has different underwriting standards, so it pays to compare companies to get the best possible coverage at the lowest possible rate.
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What Policy Options Are Best For Seniors
Considering seniors’ age and coverage needs, MoneyGeek analyzed several insurance policies suitable for this age group, including term, permanent, simplified issue and guaranteed issue life insurance.
Term Life Insurance
Generally, a term life insurance policy provides coverage for a specified term, usually 1030 years. However, since this type of policy is more affordable than other types, its suitable for people of all ages.
A term life policy is temporary, expiring after the specified term is over. Thats why it’s best to opt for a term life policy if you have temporary financial obligations like a loan or a mortgage. If youre looking for a policy to cover your final expenses, better options are available.
Permanent Life Insurance
Permanent life insurance includes both whole life and universal life insurance. With a permanent life insurance policy, youll have lifelong coverage. After you pass away, your beneficiaries will receive a death benefit, which they can use to cover your financial responsibilities. This type of policy also offers a cash value component.
You can use your policy’s cash value by either borrowing it or taking a loan against it. However, if you buy a permanent life policy late in life, you should know that building the cash value will take some time. Some companies offer permanent life policies that do not require a medical exam.
Simplified Issue Life Insurance
Guaranteed Issue Life Insurance
Life Insurance For Seniors Over 80
Elderly seniors over 80 typically wont qualify for term life insurance policies over 10 years in length, however, you can still qualify for permanent coverage. A permanent policy is also likely a better choice, as it can be incredibly difficult to purchase coverage after age 90 if you still have financial obligations. Depending on your health, the most affordable option for permanent life insurance would be:
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Life Insurance Living Benefits For Seniors
Depending on the insurer, some life insurance policies either include “living benefits” or give you the option to add these through riders. Living benefits is how policy features are described that can offer financial assistance while youre still alive. Some of the most commonly offered living benefits are:
- Accelerated death benefit
- Accidental death and dismemberment
- Waiver of premium
An accelerated death benefit rider simply gives you the option to receive a portion of the death benefit early if youre diagnosed with a qualifying illness. This option can be incredibly valuable as a senior if youre concerned about your ability to cover medical expenses that are common later in life. Just make sure the insurer will accelerate the death benefit for a variety of illnesses, and not just those that are terminal.
The amount of money youre able to receive as an accelerated death benefit will be capped as a percentage of the death benefit or dollar amount. This figure will be deducted from the death benefit your family receives when you pass away. So, if you had a $500,000 death benefit and your insurer capped the amount you could accelerate at “the lesser of $250,000 or 75% of the policys face value”, you could request up to $250,000 while still living.
Everything You Need To Know About Life Insurance
With the plethora of information about life insurance that you can get access to, it can definitely become quite confusing to understand exactly what this is all about. The good news is that you donât have to study for extended periods and know every little detail about it in order to figure out whether you need one or not.
For example, there are millions of people out there who agree that they do need life insurance yet they do not yet have one. While there are a lot of reasons for that, most people tend to have the wrong idea about it which usually has to do with life insurance being expensive and not worth it. The perceived cost is a lot higher than the actual cost of life insurance and this is due to the misinformation that has been spread around for quite some time.
This is why, while you may not need to know every small detail about life insurance, you need to know the correct details. In this article, we will be diving deep into everything related to life insurance so that the next time someone asks you about it, you are certain of your answer. Here we go!
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Can You Take Life Cover For Your Parents
Can you take out life cover on your parents lives? Yes, because they are direct family members and you share a bond of love and trust. We find out what you need to know about taking out life insurance on your parents lives.
- You can take out life insurance on your parents lives if they are direct family members and you share a bond of love and trust
- You will be the policy owner, responsible for paying the premiums
- There is one life assured on a policy – so either your mother or father will be the life assured
Pros And Cons Of Buying Life Insurance As A Senior
The pros to buying life insurance as a senior are similar to buying life insurance at other stages of life youll have peace of mind knowing your financial obligations are covered and your loved ones wont struggle financially in your absence. Seniors likely need less coverage than younger adults who are just starting their families. On the other hand, life insurance premiums increase every year we age at the time of application, so its increasingly more expensive to buy life insurance the older you get.
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Find Affordable Life Insurance For Seniors
As a 65-year-old life insurance applicant, youre going to pay more for life insurance coverage versus what a younger person is going to pay, but there are several ways that you can get more affordable insurance premiums.
Making some changes could drastically increase your chances of getting approved for an affordable life insurance policy.
Are you a senior interested in getting a great term life insurance policy? When youre ready, feel free to contact us at for a quote or use our quote form on this page to get instant life insurance quotes.