As a senior, your life has changed completely compared to how it was 20 years ago. Just about everything from your life is different, and that includes your life insurance needs. During the application process for a policy, the company is going to look at your age. In fact, your age is going to be one of the most significant determining factors in how much that you pay every month.
If you’re a senior, you might assume that you no longer need life insurance or that your policy is going to be through the roof expensive. In most cases, neither of these are true. It’s important that your loved ones have the protection that they need, without you breaking your bank every month trying to afford the premium.
At Over50LifeInsure.com, we know that finding the perfect plan can be a hassle, but that’s why we are here to help. It’s our goal to make the whole process as streamlined as possible and to find you the lowest premiums for the best plan.
Best Life Insurance Companies for Seniors in 2019
As you probably know, there are hundreds and hundreds of companies on the market, and all of them have different medical underwriting guidelines, which means they are going to view your age differently. Some companies are going to offer you lower insurance premiums while others are going to charge you expensive premiums because you’re over the age of 50. To help you save time and money, we have compiled a list of some of the best companies for seniors.
Lincoln Financial is not the most well-known company on our list, but they continue to be one of the best companies for anyone that is over the age of 50. They have a plan for everyone, offering both term life insurance which can be bought as late as age 80 and permanent life insurance for people that can be purchased up to age 85. Not only that, but they also have a very lenient view of people that are overweight.
We have even seen them offer preferred rates on certain applicants over the age of 70 even with a history of diabetes. Certainly the Hemoglobin A1C would need to be well controlled and you’d have to have no complications from the diabetes. They also have offered preferred rates for people with a history of certain benign skin cancers as well as testicular, thyroid, uterine, cervical and prostate cancers. We recently helped a man that had high blood pressure. It was well under control so we had him apply with Lincoln and we were able to help him get preferred plus rates.
Every person is different, and everyone is going to qualify for different rates, but Lincoln Financial continues to offer some of the cheapest coverage on the market. With our experience, they are typically in the top tier for anyone that has reached an older age and needs term or permanent coverage.
Banner Life is an excellent option for a lot of people that are considered high-risk applicants. They offer both term insurance policies and universal life insurance plans. Their term life policies are priced very competitively.
They have a number of underwriting niches as we call them. Know that everyone company looks at you differently based upon medical history, driving record, and other lifestyle habits.
For instance, with Banner anyone with any family history of a parent or sibling having been diagnosed with or passing away from cancer before age 60 they can be a go to company. When it comes to family history they are concerned about coronary artery disease, but not cancer. This means that you can potentially get the best rates with a family history of cancer with Banner while with a lot of other companies you wouldn’t be able to.
Prudential is one of the more popular companies on our list. More than likely, you recognize the name, but you may not know the types of coverage that they offer. If you’re looking for a company to give you affordable life insurance as a senior, look no further than Prudential.
Not only is Prudential an excellent option for older applicants, but it’s also an excellent choice for anyone that has been diagnosed with diabetes, sleep apnea, anxiety, or depression. The older that you are, the more likely that you are to be diagnosed with various health ailments, and then Prudential could be the best choice for coverage.
They also have offered very competitive rates for people with a DUI or two on their record.
Prudential is also a go to for anyone that uses any dip, snuff, nicotine gum, or e-cigs. As long as you haven’t smoked cigarettes in the last year you could potentially still get non smoker rates. They also offer non smoker rates for people that smoke marijuana recreationaly where a lot of companies would only offer smoker rates. Know that smoker rates usually cost at least twice as much as non smoker rates.
Mutual of Omaha
Mutual of Omaha is known as one of the best senior life insurance companies on the market. They offer both term and whole life insurance for people that are over the age of 70. Unlike most other companies, they have term insurance plans for seniors that can be is offered to applicants up to age 80. This means that a 10 year term could be purchased at age 80 that would cover you until age 90. Most companies won’t offer any term life protection to anyone near the age of 80.
They also have a very competitive final expense whole life product. For seniors looking for life insurance to cover burial costs Mutual of Omaha can be a great option. They have plans that range from $2,000 to $40,000 of coverage and if you are fairly healthy they offer some of the best rates available.
Not only do they continue to offer coverage for older applicants, but they also have excellent rates for seniors that are in less than perfect health. If you have high cholesterol or high blood pressure, they will still give you affordable rates. The key is that the your blood pressure and cholesterol need to be under control.
You’ve probably heard of AIG. They offer excellent life insurance options for people that are older than they were than when they purchased their first life insurance plan. They have a wide variety of products including competitive term, universal life, and whole life.
They have a particular nice guaranteed issue final expenses whole life plan that they offer. This can be great for someone with severe health issues that just needs a small amount of coverage. With this plan, you can get approved for coverage, regardless of your health or any pre-existing health complications that you may have. This means you could be battling a major health illness and still get approved. The plan is offered to anyone between the ages of 50 to 85 for up to $25,000 of coverage.
Understand that there is a downside to the guaranteed issue plan. Since everyone can qualify for it that is between the ages of 50 to 85 the death benefit works as a graded death benefit. For this plan if you pass away during the first two years the policy will only pay out the full death benefit if you were to pass away due to an accident.
If you were to pass away during the first two years then the full death benefit would not be paid. Instead your beneficiaries would receive 110% of the premiums paid to date. This means that if you paid $100 for the first month premium and then passed away your beneficiaries would receive $110.
After two years the full death benefit would be paid regardless if you pass away from an accident or natural causes.
Also, the premium stays the same and the death benefit stays the same for the life of the policy.
Protective Life offers several different options for seniors. This gives you some flexibility because you can choose which policy works best for you. Some of your best options with Protective Life include guaranteed universal life and term life insurance. These are good choices for seniors who want some protection as they age.
With Protective Life, you can access part of the policy’s death benefit if you are diagnosed with a terminal illness. This is helpful in paying for some of those medical bills and other final expenses. This may also be referred to as an accelerated death benefit. Keep in mind that you cannot be insured without a medical exam with Protective Life.
One of the benefits of choosing Protective Life is their competitive insurance policies. They also offer a variety of riders that can be added onto an existing policy. Some of these riders might be the right fit for you and your needs as a senior.
One such rider is their Income Protection Rider (IPO). This is comes in handy if you don’t want your beneficiaries to receive the proceeds from your life insurance policy all up front. We helped a woman recently who wanted to buy a $500,000 policy. She wanted this money to go to her two sons when she passed away, but was concerned about them receiving all of this money right up front. With the IPO rider she could designate some money upfront, and some money paid over a number of years. In her case she opted for $100,000 up front and then $50,000 to be paid to them over the course of the following 8 years. This also reduced the premium she would have to pay for coverage since the death benefit proceeds would be paid out over a number of years.
One of your options for life insurance as a senior is John Hancock. John Hancock is the only company we are aware of that will offer life insurance coverage past age 85. In fact they will insure up to age 90.
John Hancock is a good choice because the company offers a universal life insurance policy that can protect you for life. This gives you peace of mind about what will happen when you pass away. It also gives your family peace of mind about how they will live their lives at the time of your death.
With John Hancock’s universal life insurance policy, the cash value accumulates. You can also borrow against your cash value which is a nice option to have in case of an emergency. You do not need to repay the loan. When you pass away the outstanding loan will be taken out of the death benefit at the time of your death.
The current assumption universal life policy gives you a lot frequency of flexibility when it comes to how often you pay your premiums and how much you pay with each payment. There’s a lot of flexibility built into the product. For some seniors, flexible premiums can be very helpful. You can make it work the way you need it to work for your financial situation.
American National is a good life insurance company to look into due to its range of coverage. There are a lot of options, which makes it easy for anyone to find exactly what they need from a life insurance company. You can find something that works for your needs and that gives you peace of mind about your loved ones at the time of your death.
American National offers guaranteed universal life policies that begin at $25,000. If you have few needs, a smaller policy can be a great choice and a good way to save money. This is a good idea if you do not have a large income to spend on life insurance.
As you shop for a life insurance policy as a senior, you might consider Principal. Principal is another great option for seniors. They offer a variety of policies, making it easy for you to find the one that fits your needs. Keep in mind that many seniors only need term life insurance. This is easy to find with Principal.
Principal has a program that features accelerated underwriting which is a great program as long as you are 60 or under. This program allows you to be insured in as little as 48 hours if you qualify. This type of life insurance allows you to be insured quickly and without the inconvenience of a medical exam. Understand though you do need to be considered a “preferred” risk or better which means your health needs to be very good.
If you have a pre-existing health issue, they may be a good option for you as well. You wouldn’t qualify for their accelerated underwriting program, but you may be able to secure coverage at very affordable rates even if you have certain health conditions. The best way to find out is to check with an independent life insurance agent insurance directly. They can help you determine whether you can be insured by them or not.
North American is recognized for being one of the best life insurance companies for seniors to use. North American will insure seniors up to the age of 85. This is hard to find because the risk increases as people age. Still, North American offers this option and makes it easy for seniors to be insured. As with all types of life insurance, the rates increase as you age. This is still a good option if you cannot be insured by other companies at your age.
With North American, you will get some of the lowest rates available. This is especially helpful if you are a senior due to the price increase as you age. Using a life insurance company with low rates can help to balance out the high costs that you have to pay for life insurance as you age.
They have also have an indexed universal life (IUL) policy that is one of the most competitive products in the marketplace. These policies can be a good fit for those with discretionary income/assets in their 50’s looking for a supplemental way to save money for the future on a tax advantaged basis. A properly designed and well funded IUL policy to be an attractive asset to own for the right individual.
There are a variety of different products available through North American. Because North American offers a variety of different products, you will be sure to find the right policy for your current needs.
Sagicor is another life insurance company to consider as you continue your search. With Sagicor, they have a a really strong Accelewriting underwriting program for applicants up to age 65. People between 46 and 55 years old can get up to $750,000 of 10,15, or 20 year term in as little as a day or 2 day. There’s no medial exams to do and no medical records required for those that qualify. They offer up to $500,000 of coverage to those up to age 65 through this Accelerating program for those that qualify. The two major downsides for this program is you have to be fairly healthy and the cost for the policy will be a little higher since no medical exam, or medical records are looked at. You can think of this as sort of a convenience fee. For those wanting to coverage quickly and pretty hassle free they can be a very good choice.
They also have an attractively priced guaranteed universal life policy for those needing lifetime coverage.
Is term or whole life insurance better for seniors?
Life insurance is a very personal matter and varies greatly from person to person. In most cases, term life insurance is the best option for all people, including seniors. This is because it is easy to understand and the premiums are lower than whole life insurance.
Term life insurance is life insurance that lasts for a set duration or term. This may be 10, 20, or 30 years. Once the term runs out, you may choose to renew it at a higher premium due to your age. There is no cash value so you do not keep any of the premiums if you survive the policy. This is okay if you only wanted that protection while you are providing for your children or grandchildren or perhaps for another temporary need. If you were hoping to have your final expenses covered or to be sure that life insurance proceeds pass on to your kids or grand kids through legacy planning, this is not ideal.
When you are shopping for a life insurance policy as a senior, it is important to find what works best for you personally. Weigh your options and consider your needs. It can also help to talk to an independent life insurance agent. You can even look for an agent who specializes in life insurance for seniors. They can help you to make the best decision for your needs based on their expertise.
Why you should get life insurance as a senior
Not every senior thinks that they need to get life insurance. There are many reasons that life insurance as a senior might be right for you. Before deciding whether you need life insurance, take a look at these possible reasons you might need life insurance as a senior.
You are paying off debts
If you are still working to pay off debt, life insurance is a good way to help. Large debts, such as a mortgage, take longer to pay off. If you pass away while you still owe those debts, your loved ones will be responsible for paying off that debt. When you have life insurance, the death benefit can help your beneficiary to pay off the mortgage. If you get life insurance for this purpose, you should get it for the number of years that you still have remaining on the debt. For example, if you have 10 years left on your mortgage, a 10-year term policy is a good idea.
Your loved ones rely on your income
If you are still working, your loved ones may still be depending on you to provide for them financially. If you get term life insurance and pass away after your policy expires, your loved ones will be left without the money they need to survive. Without a policy in place, they cannot replace your income with the death benefit. In this case, you should choose a guaranteed universal life insurance, which will be more useful.
You need to cover your final expenses
Final expenses can add up quickly. Between the medical costs and funeral costs, your family may have a lot to pay for. You do not want your family to have to deal with this financial struggle as they grieve the loss of their loved one. You want them to know that everything is taken care of so that they can grieve. In this situation, burial or final expense insurance is a good idea. This coverage only covers those final expenses, which are a big concern for many seniors. If you want to alleviate that financial burden so your family does not have to worry too much, you can get final expense insurance.
How late is too late for seniors to get life insurance?
Different life insurance companies and their policies have different restrictions. Rates are going to increase as you age so it is a good idea to get life insurance as soon as possible. This is because it becomes riskier for insurance companies to insure you when you are older. As you age, you are more likely to develop serious health issues and are also closer to the age of death. And of course they have to pay out the death benefit if you pass away while the policy is active.
Most types of life insurance require you to get a health exam. This, along with any health conditions you may have, can increase the cost of your premiums. Typically, seniors are not in perfect health and can expect to pay more for life insurance no matter what. There are many health issues that seniors deal with, including high blood pressure, diabetes, and more. Smoking and other lifestyle behaviors can affect the cost of your premium.
Your health is definitely not going to stop you from being insured, but you should be aware that it can be challenging to be insured as you age and have more health issues.
Are no-exam policies a good idea?
They can can. Having an examiner come out to your house to complete a paramed exam can be an inconvenience. And some people really don’t like like getting poked in the arm and having someone take their blood. We get it.
No-exam policies can be a good choice, but only some companies offer them and typically only up to certain coverage amounts and also only for certain ages. If you are applying for too much coverage or are over a certain age you will have to do a medical exam.
No-exam policies cost more than other types of life insurance. This is because a health exam gives insurance companies insight into your current health status. It is riskier for companies to insure people who are in poor health because it increases the chance of them passing away while their policy is active. Then, the company would have to pay out the death benefit.
But if the difference in cost is worth it to you to skip the exam or if you need to get a life insurance policy in place as soon as a possible then a no-exam policy can be a great choice.
Life Insurance for Seniors
Getting life insurance is one of the most important things that you’ll ever do for your loved ones. It’s one of the few ways that you can ensure that they have the money that they need, even if something tragic were to happen to you.
If you have any questions about life insurance or you want to look at the various options available to you, please contact one of our agents today. We are a group of independent insurance agents, which means that we work with dozens and dozens of highly rated companies across the nation. We know that shopping for coverage is never going to be a fun task. Nobody wants to think about his or her death, but not planning for the inevitable is one of the worst things that you can do for your family and loved ones.