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In your golden years, life insurance can help you plan for the future while making sure you have access to money if you need it during your lifetime, with the help of riders. Just be sure to take the time to compare policies, as seniors are typically charged higher rates — and shopping around can save you hundreds of dollars over the life of your policy.
Nationwide life insurance
See the 5 best life insurance companies for people over 60
Regardless of whether you have dependents anymore, life insurance can help cover necesssary expenses while you’re living and after you’re gone. Some reasons to consider getting a policy are to:
However, if you’re leaving behind other assets to your loved ones, you may not have as much of a need for coverage.
As a young senior, you have access to most types of life insurance. Though, seniors over 70 begin to see more limited options. Which coverage is best for you depends how much coverage you need, your age and how healthy you are.
The cheapest and most straightforward policy, term life insurance offers coverage for a set period of time — like 10 or 15 years. The premiums stay the same for the life of the policy, and your beneficiaries receive a payout if you die within the term. However, you may need to take a medical exam, which could raise your rates if you have a serious health condition and the cutoff age for this type of policy is usually around 70 to 75.
If you want to treat your life insurance policy as an investment, consider a permanent policy like whole life insurance or universal life. These provide lifelong coverage and build cash value over time at either a fixed or variable interest rate. Once you’ve accumulated enough, you can withdraw that money and use it to fund your retirement or leave a larger legacy to your family. These types of policies can be offered to seniors well into their 80s, but coverage limits may be lower as you age.
Open to those over 50, final expense insurance is specifically designed to pay for end-of-life expenses, such as funeral and burial costs as well as medical bills.
Ross Quade, a licensed insurance agent and co-owner of Prime Mutual told Finder, “If a senior is on a fixed-income and their primary concern is covering the cost of their funeral or not passing on debt to loved ones, they can consider final expense insurance.”
It aims to reduce the financial burden on your family immediately after your death, and you don’t need to take a medical exam to qualify. But it can be expensive, and coverage is capped at small amounts — like $2,000 to $10,000.
Guaranteed issue policies are whole life policies that do not require a medical exam or health questionnaire to receive coverage. They usually have low limits, like $10,000 to $25,000, and cost more than policies requiring a medical exam.
Traditional policies typically won’t cover pre-existing conditions like heart disease or diabetes, so you may not qualify for a traditional policy or your insurer may specifically exclude coverage for your pre-existing conditions.
If you aren’t approved for a traditional policy, you can opt for a policy that specializes in pre-existing conditions or no medical exams — just know the premiums are typically higher.
The average cost of life insurance for a $500,000, 20-year term policy is $228.63 for a 60-year-old man, and $162.88 for a 60-year-old woman. This premium increases significantly depending on age, so expect to pay nearly double that average at the age of 65 and nearly triple at the age of 70.
| Age | M/W | $250,000 policy | $500,000 policy | $1,000,000 policy |
|---|---|---|---|---|
| 60 | man | $123.21 | $228.63 | $431.49 |
| 60 | woman | $89.54 | $162.88 | $305.29 |
| 61 | man | $138.66 | $256.52 | $490.46 |
| 61 | woman | $101.22 | $184.11 | $350.24 |
| 62 | man | $156.59 | $291.94 | $557.67 |
| 62 | woman | $114.81 | $208.90 | $395.03 |
| 63 | man | $175.92 | $327.65 | $627.83 |
| 63 | woman | $132.00 | $239.36 | $453.57 |
| 64 | man | $198.56 | $372.03 | $710.38 |
| 64 | woman | $148.09 | $271.48 | $514.23 |
| 65 | man | $223.20 | $423.78 | $805.84 |
| 65 | woman | $165.19 | $307.44 | $584.10 |
| 66 | man | $270.79 | $494.22 | $951.15 |
| 66 | woman | $211.52 | $399.36 | $759.12 |
| 67 | man | $312.78 | $573.85 | $1,116.30 |
| 67 | woman | $248.30 | $461.75 | $876.93 |
| 68 | man | $349.99 | $654.84 | $1,273.46 |
| 68 | woman | $278.53 | $516.58 | $987.72 |
| 69 | man | $377.21 | $723.80 | $1,395.79 |
| 69 | woman | $306.89 | $595.11 | $1,081.69 |
| 70 | man | $421.49 | $816.02 | $1,572.21 |
| 70 | woman | $362.24 | $697.29 | $1,213.17 |
You may see higher life insurance rates, especially with these risk factors, according to our analysis of life insurance rates.
Compare top life insurance companies by medical exam requirements and coverage levels, then get a quote from your top picks to score the best price.
Keep these tips in mind while shopping for a policy to make sure you get the best deal:
Keep an eye out for these add-ons that make your policy more valuable, especially in your senior years.
There are a few ways to reduce the costs of life insurance:
We averaged rates for a 500k, 20-year term policy for healthy people 60 to 69 with five top life insurance companies and found that average rates with Protective are cheapest for both men and women in their 60s.
| Company | Man | Woman |
|---|---|---|
| AIG Life Ins (American General) | $412.67 | $330.15 |
| Banner Life (Legal & General America) | $410.60 | $332.79 |
| Protective | $409.73 | $302.98 |
| Transamerica | $430.25 | $382.09 |
| United of Omaha | $467.86 | $328.16 |
You can use a life insurance policy in several ways to prepare for or fund your retirement with a permanent life policy.
When you take out whole, variable or universal life insurance, part of the premium goes to an investment account that becomes a cash asset over time. Once you’ve built enough cash value, you can use the money, but any loans or withdrawals are deducted from the death benefit.
Whether you don’t qualify for or don’t want traditional life insurance, consider critical illness or disability insurance policies to pay expenses if you suffer from an illness or injury. You could use the cash to pay for:
If you have debt, financial dependents or want to make sure your loved ones aren’t burdened with funeral costs or medical expenses, it’s worth looking into a policy as a senior.
But premiums increase significantly as you age. To get the lowest possible premium, compare life insurance companies.
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Our experts analyze life insurance companies to help you to find the strongest possible policy and premium for your family’s needs. We assess their financial strength, customer satisfaction, policy features and riders. We then give each insurer a score between one and five stars that reflects their offering and reputation in the industry.
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