When seniors over 65 are shopping for life insurance, there are typically two reasons they need coverage at this point: they have life insurance now. Still, they would like to add additional coverage, or they had life insurance and had to give it up and need to replace it.
Whatever your reason is for needing life insurance at 65 or older, take a breath because you can still purchase affordable life insurance, even if you’ve developed some health issues. And it’s important to note that your choices are not limited to an expensive guaranteed acceptance policy that you’ve likely seen advertised on TV.
We have found over time that seniors who are over 65 have found themselves in one or more of the following situations:
The good news is you still have choices, and you can shop all of the major highly-rated insurance companies online using an experienced and reputable independent agent.
Everybody has different needs according to their circumstances. The amount of life insurance that seniors over 65 need depends on what they need their death benefit to cover. For example, many seniors over 65 still have mortgage payments and other debts that need to be paid after they die.
Today, a lot of seniors are raising their grandchildren or still have children in the home who are financially dependent, even if it’s temporary. In this case, you would want to replace your retirement income so that your dependent loved ones would not be financially devastated in the event of your death. If this sounds like you, we suggest that you and your agent complete a needs analysis so you can determine a sufficient death benefit to replace your income.
We have found over time, however, that many seniors over 65 are most concerned about getting enough life insurance to cover their final expenses when they die (hint: everyone has final expenses). Final expenses typically consist of funeral and burial expenses, unpaid medical bills, and nursing home costs that were not paid by Medicare.
We know from published reports from the National Association of Funeral Directors that an average funeral costs about $9,000 to $12,000, depending on where you live. Certainly, funerals can get more expensive if your loved ones insist on additional services. In most cases, seniors should consider at least $15,000 to $20,000 in coverage for a final expense life insurance policy.
Since life insurance rates are based on your age, your health, and the amount of insurance you need, we’ll list the rates for several types of insurance policies in this article.
First, let’s take a look at term insurance since it is typically the cheapest insurance available:
Here are the rates for a $100,000 20-year Term Life Insurance policy for a healthy male and female non-smoker:
Age of Applicant | Male Non-Smoker | Female Non-Smoker |
66 | $133.28 | $103.11 |
67 | $152.66 | $120.74 |
68 | $176.70 | $140.72 |
69 | $197.32 | $152.26 |
70 | $222.63 | $172.61 |
Remember, these rates are based on a healthy non-smoker, so a lot of carriers may require an insurance medical exam as part of the underwriting process.
The good news about final expense insurance is that it is typically whole life insurance and will come with all the guarantees and benefits that permanent life insurance policies have. These benefits consist of life insurance coverage for a lifetime, level premiums that cannot be changed by the company, and cash value accumulation that can be accessed using policy loans or withdrawals.
Remember, a final expense policy is designed to cover your funeral and burial plus other final expenses, so the death benefit will be much lower than if you were trying to replace your income.
Age of Applicant | Male Non-Smoker | Female Non-Smoker |
66 | $84.90 | $64.96 |
70 | $107.50 | $78.24 |
75 | $147.37 | $107.50 |
80 | $216.58 | $247.57 |
85 | $298.30 | $247.57 |
It’s important to note that men typically pay more for life insurance than women because women generally live longer, which gives the insurance company more opportunities to collect premiums.
If you’re like most seniors, you may have some health issues. Most seniors begin developing health issues like diabetes, high blood pressure, and high cholesterol in their early sixties, so it may be possible that you have multiple health issues and will not qualify for standard insurance rates.
If you find yourself in this situation, do not give up. You can qualify for a guaranteed issue final expense and burial insurance which can be a great option for seniors. With a guaranteed issue policy, the insurance company will not take your health conditions into consideration in order to issue a policy. In fact, most companies that offer guaranteed issue life insurance don’t even have medical questions on the application. This means that virtually anyone who is alive can get some amount of life insurance.
With guaranteed issue life insurance, you will have a two or three-year waiting period during which the insurer will not pay the full death benefit if you die from natural causes. Instead, they will typically pay a benefit equal to the sum of all your insurance premiums paid to the company plus 10% interest.
So then, for all you seniors out there who have passed age 65 and do not have life insurance or need more life insurance, contact an independent agent like LifeInsure.com, which represents the best life insurance companies that can offer a life insurance solution even up to age 85. Most applicants will find that finding affordable life insurance policies for seniors may be easier and less costly than they think.
For more information about Life Insurance for Seniors over 65 and to get a free and confidential quote, call the insurance professionals at LifeInsure.com (866) 868-0099 during normal business hours or contact us through our website.
LifeInsure.com® is a registered
trademark of Intramark Insurance,
Services, Inc. © 2024.
Privacy Policy
Legal Notice & Disclaimer
Here is the legal information we’re required to provide you. LifeInsure.com, a California corporation and subsidiary of Intramark Insurance, is a licensed independent insurance broker. The information provided on this site has been developed by LifeInsure.com for general informational and educational purposes. We try hard to ensure that this information is up-to-date and accurate. Any insurance policy premium quotes or ranges displayed are non-binding. The final insurance policy premium for any policy is determined by the underwriting insurance company following application.
