Life insurance plays a different role in every stage of life. Younger adults (seniors) who purchase life insurance typically have dependents in mind who would need continued financial support if something happened to them.
Taking out life insurance would provide money to your chosen beneficiary after you die. Understanding life insurance can help you plan for your family’s long-term financial needs.
In this article, you would learn what the 10 best cheap life insurance for seniors are and how best to utilize them. Keep reading.
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What is Cheap Life Insurance for Seniors?
Life insurance for seniors is the same type of life insurance available at any age, but it’s often priced and marketed differently. This is because seniors have unique needs and financial situations.
This insurance may be limited to seniors based on their age and life expectancy. The premiums for this type of insurance are typically very high.
The more common type of policy in this age group is permanent life insurance, which is usually sold to seniors as a final expense or burial insurance.
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Why is Life Insurance Important for Seniors?
There are a number of reasons why you may consider taking out life insurance as a senior. As a senior, your life deteriorates as each day passes.
The reasons why you should consider taking out one of the best cheap life insurance for seniors include-
- A payout from your policy can help ensure quality care for your partner or spouse as they age or as their medical expenses grow.
- Taking out insurance from the best cheap life insurance companies gives you peace of mind as well as saves you cost.
- A funeral can cost anywhere from $5,000 (with cremation) to over $9,000 (with burial). Life insurance is a good way to ensure that this financial burden doesn’t fall on surviving family members.
- While it’s true that life insurance gets more expensive as you age, life insurance for older people might cost less than you think. Since there are fewer term life insurance options for older adults, most policies for seniors fall into the permanent life insurance category. These policies never expire as long as premiums are paid.
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10 Best Cheap Life Insurance for Seniors
#1. Guardian Life
Guardian life is one of the best cheap life insurance for seniors. It allows you to renew an expiring term policy for five more years if you want to keep the coverage a little longer.
The maximum issue age with Guardian life is- 75 (10-year term), 70 (15-year term), 65 (20-year term). The insurance policy coverage is $100,000+.
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#2. AARP
This is the second-best cheap life insurance for seniors. To apply, you would be required to answer a few health questions to qualify for either term or whole life coverage.
Although AARP products are typically for members only, life insurance coverage is also available to members’ spouses.
The policy type is for a term. The maximum issue age is 74, and the coverage is between coverage: $10,000 to $100,000.
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#3. MassMutual
Ranked #3 on the list, MassMutual has been doing seniors quite a lot of good. Few providers issue whole life products to applicants over age 85, which makes this insurer a good bet for older seniors looking for permanent coverage.
There is also no limit to how much term life coverage you can buy (subject to restrictions), which you may find appealing if you’re looking for a substantial death benefit.
The policy type is for a term, the maximum issue age is 75 (10-year term), 60 (25-year term), and the coverage is 100,000+.
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#4. New York Life
New York life is another cheap life insurance for seniors. With face values for both term and whole life starting as low as $10,000 and reaching into the millions, New York Life’s wide coverage range is notable.
The policy type is for a term, the maximum issue age is 75, and the coverage is $100,000+. If you want a whole policy type, the maximum issue age is 90 and the coverage $10,000+.
#5. State Farm
State Farm gives you the option to add more coverage for you or another person through a term rider.
This can be useful if you need to buy a small amount of coverage for a partner but don’t want to purchase a separate policy.
If you’re looking for a company with a great reputation, State Farm ranked first out of 21 companies for overall customer satisfaction in J.D. Power’s 2021 life insurance study.
#6. Northwestern Mutual
With a 4.5 rating out of 5.0, Northwestern Mutual has been around for quite a while. In its time in existence, it has registered very few complaints than expected for a company of its size.
It has been recorded to be a trustworthy choice. For the whole policy type, the maximum issue age is 85 and the coverage is $50,000+.
#7. USAA
USAA allows you to convert your term policy to permanent coverage before it expires, which can be useful if you think you would want lifelong coverage at a later date.
For anyone looking to skip the medical exam, the company’s simplified whole life may be a good bet; you’re only required to answer a few health questions to qualify for coverage.
USAA life insurance isn’t limited to military families.
#8. Mutual of Omaha
Ranked #8 is mutual of Omaha. It is one of the best cheap life insurance for seniors. It has excellent customer service ratings, competitive pricing, a wide range of policies.
With mutual of Omaha, you can get a policy up to age 85.
However, with this best cheap life insurance for seniors, the medical exam is required for some policies, some policies must be purchased through an agent and limited riders are available. Mutual of Omaha has a solid reputation for customer service and satisfaction.
#9. AIG
This is another insurance that ranks high on the list of best cheap life insurance for seniors. It offers coverage options from $5,000 to $25,000, there is guaranteed acceptance up to age 80, chronic and terminal illness accelerated death benefits are also included at no additional cost.
However, there are only limited benefits for the first two years, and living benefits capped at 50% of the death benefit amount.
Acceptance is guaranteed for anyone up to age 80 with no medical exams required—which puts AIG ahead of the pack, as many other providers have an age cutoff much sooner than age 80.
In addition to providing peace of mind for covering funeral costs, AIG’s policies give an additional sense of security by providing access to the policy benefits in case of a chronic or terminal illness.
Operating under the Legal & General brand name, Banner offers term and universal life insurance.
However, the scope of policies available is more limited than some competitors, and consumers may be frustrated by the lack of clear policy information on the provider’s website.
If you are looking for the best cheap life insurance for seniors Banner is the clear winner. While you must be 75 or younger to sign up, your coverage will continue beyond then for the length of your policy.
Frequently Asked Questions
In taking one of the best cheap life insurance, you should know that suicide is typically not covered within a certain amount of time from the policy start date, and some specific causes of death, like private plane crashes, could also prevent a payout.
Life insurance costs for seniors depend on age, coverage amount, term, and health status.
Most insurance companies require new applicants to choose either “male” or “female” when applying for insurance and don’t always offer an option for those who identify as nonbinary or transgender. While being nonbinary doesn’t disqualify you from getting insurance, you should be aware that most insurance companies haven’t updated their underwriting processes to reflect an awareness of gender issues.
When buying whole life insurance for seniors, healthy men should expect to pay between $1,122 and $2,089 a month for a $250,000 death benefit. And healthy women will pay $934 to $1,801 for their whole life insurance policies.
Term life insurance is the least expensive form of life insurance. It has no cash value and only covers you for a specific number of years. Once a term life insurance policy ends, you will no longer have coverage, and if you pass away after the term ends, your beneficiary won’t receive a payout.
Most term life insurance companies will issue term policies that expire at age 90 or before. That means that if you are exactly 65 you can get a 10,15,20, or 25-year term policy. Once you are older than 71, your options are limited to a 10 and 15-year term.
The average cost of a life insurance policy ranges from $40 to $55 per month. But, the true cost varies by the type of insurance, coverage amount, and personal factors.
Conclusion
Just because you are older does not mean you cannot find a life insurance policy that meets your needs.
The cost of coverage can increase with age, but many insurers will accommodate older adults, even if they’re not in the best of health.
These 10 best cheap life insurance for seniors should get you started in your journey towards life insurance.
References
- https://www.valuepenguin.com/best-life-insurance-over-60
- https://www.policygenius.com/life-insurance/best-life-insurance-for-seniors/
- https://www.lhlic.com/consumer-resources/life-insurance-for-seniors/
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