Term Life Insurance for Seniors, is it the Best Choice?

term life insurance for seniors

There are many different types of life insurance to choose from. They each have different benefits and disadvantages. They each work for different people. It is important to understand the different types of life insurance available before making a decision and getting a life insurance policy. 

There are a couple of main reasons that a senior should consider getting life insurance. First, life insurance can be used to pay any outstanding debts. This includes debts like a mortgage. Second, life insurance is important if a senior has any beneficiaries. Outside of these main reasons, a senior may not need life insurance. 

Before choosing what type of life insurance to get, you should look into your different options. This will help you to make an informed decision and will lead to the best decision for both you and your loved ones. 

If you are a senior who is looking for life insurance, one of your options is term life insurance. Here is everything you need to know about getting term life insurance for seniors and what your best options are. 

What is Term Life?

Term life insurance is a type of life insurance that lasts for a set duration, which is known as a term. A term can last for 10, 15, or 20 years. Other term durations are available, but these are the most common terms you will find. 

The term is set for that duration of time and will expire after the duration of time has run out. At that point, the insured has the option to renew the policy. Keep in mind that the premiums can increase at this time. This is because the insured has aged so the policy has to change. Premiums depend on a number of factors, including age. Often, people do not need to renew their term after it runs out. 

Term life insurance only provides a death benefit payout if the insured passes away while the policy is active. The payout then goes to the beneficiaries. When the policy runs out, there is no cash value or another type of payout. 

Most people who get term life insurance policies get them for the duration of time they will have kids to provide for. Once their children are independent, the death benefit is no longer needed to support them. A term life policy can also help to replace the income of a lost spouse. 

Some people use term life insurance policies to cover the cost of a long-term debt. This might include a mortgage on a home. In this case, the policy term should be set to last as long as it takes to pay off the mortgage. 

In order to get term life insurance, you will need to answer medical questions and undergo a medical exam. The purpose of this is to determine your premium. Health issues can make you less likely to qualify for term life insurance. This is simply because there is a greater risk for the company to insure you. If you are not in good health, they know that you are more likely to pass away before your policy runs out. This is risky for the insurance company so they may charge you more or may not insure you at all. 

Should Seniors Get Term Life Insurance? 

Term life insurance is a good type of life insurance for seniors to consider. Seniors should think about getting life insurance like they would consider getting another type of life insurance. 

It is important to remember that life insurance is based on multiple different factors. These factors are personal and health-related. Though term life insurance might be the right choice for one senior, that does not mean it is the best option for all seniors. 

Seniors should do their research about all types of life insurance before making a final decision. Term life insurance can work for seniors, but there are some limitations. There are other types of life insurance available that can also be good options for seniors. The answer truly depends on the senior and what they need from a life insurance policy.

When a senior is considering life insurance, they should consider whether they need it. If they do not need life insurance at all, term life insurance should not be a concern either. 

If a senior has already put away enough money to pay for their final expenses, a life insurance policy is not needed. If a senior does not have dependent children, a life insurance policy is not necessary. If a senior has already paid off their mortgage, a life insurance policy is not essential. You do not want to pay for a life insurance policy if you do not really need it and if you could do without it. 

Situations When Term Life is the Right Choice 

Term life insurance can be the right choice for a senior for a couple of different reasons. It is important to evaluate your current situation to decide if term life insurance is the right choice for you. Your current needs and the needs of your loved ones can help you to make this decision. Be sure to get input from a life insurance agent if you need additional guidance. 

Here are a few situations where term life is the right choice for a senior: 

  • If you still have a long-term debt, such as your mortgage. Your life insurance policy death benefit can help to cover the mortgage at the time of your death if money is still owed. This can help your family to cover all of the final expenses that they may have to handle at the time of your death.
  • If you have children or family members depending on your income. Many seniors are retired or have money saved up. They often have enough money to provide for themselves. Think about whether anyone is depending on you. They may be relying on your retirement or savings to pay for their expenses. In this case, the death benefit of a life insurance policy would cover the loss of income. 
  • If you need to cover the cost of your final expenses. Final expenses include medical bills and your funeral and burial. Getting life insurance to cover these expenses takes the financial burden off of your family. In some cases, it can be more affordable to save this money independently due to possible challenges with getting life insurance as a senior. 

Aside from these reasons, it may not be necessary for a senior to get life insurance. Term life insurance can be a good option in these specific situations. 

Till What Age Do Seniors Qualify for Term Life insurance? 

If a senior wants to get term life insurance, they should do so as soon as possible. As seniors age, their options become more limited. This is because insurance companies want your policy to expire before you pass away. As you age, the chances of death increase. 

If you are over 60, you will be limited to 10-year and 20-year terms. In some cases, you can find companies that offer different term amounts, but 10 and 20-year terms are generally the ones available. 

Few companies will set a policy for a senior who is 85 or older. Different companies set their own limitations for maximum age so you should check with each company to make sure term life insurance is still an option. For example, some may only allow you to get a policy until the age of 75 or 80. It depends on the company. 

Another possible barrier with age is any health complications you may have. As people age, they tend to have more health issues. Some types of health issues can make it difficult for you to be insured. This is another reason it is important to get term life insurance as soon as possible if you are interested in getting it. 

Term Life Insurance Alternatives for Seniors 

There are other types of life insurance available to seniors if they do not want to get term life insurance. Because term life insurance is the simplest and most affordable option, it is a good idea to try to get term life insurance first. If you cannot get insured, you can explore other options. 

The main types of life insurance a senior might consider include the following:

  • Guaranteed Issue Life Insurance. Guaranteed issue life insurance is a common type of life insurance that seniors consider. This is a permanent type of life insurance, which lasts for the rest of the insured’s life. It does not require a medical exam or a medical questionnaire. Some life insurance companies may ask about terminal illness, but an extensive questionnaire is not required. You are guaranteed to be insured with a guaranteed issue life insurance policy. This is a good choice for someone who has been denied another type of life insurance. 

In most cases, a guaranteed issue policy will have a graded death benefit. This means that if you pass away within the first two years after your policy is set, your beneficiaries will not receive the entire death benefit. They will get the amount you have put toward your premiums so far. They may get an additional percentage as well. Once those first two years are up, the full death benefit is available at the time of your death.  

  • Simplified Issue Life Insurance. Simplified issue life insurance is a low coverage type of life insurance. The main purpose of simplified issue life insurance for seniors is to cover final expenses. Final expenses include costs such as a funeral. In order to get simplified issue life insurance, you will not have to undergo a medical exam, but you will need to answer a medical questionnaire. It is somewhat easy for seniors to qualify for simplified issue life insurance. In some cases, it can be easier to qualify for simplified issue than term life insurance. Coverage is not guaranteed, but often people are able to qualify. Coverage costs can be pricier than term life insurance options and other comparable life insurance policies. It is a good choice if you cannot be insured otherwise or want to skip the medical exam. 
  • Final Expense Life Insurance. The purpose of final expense life insurance is to cover the cost of any final expenses that a senior may have. Most commonly, final expense insurance is used to cover medical bills and funeral and burial costs. Often, these expenses are the main reasons that seniors choose to get life insurance. This makes final expense life insurance a great option for seniors. This helps to avoid putting that financial burden on your family as they grieve the loss of their loved one. This gives you peace of mind that your family will be able to grieve without worrying about how they will be paying for your final expenses. 

As always, it is important for people of all ages to understand their life insurance options so they can make the best decision for themselves and their loved ones. Without an understanding of life insurance and the different policy options, a senior may end up with the wrong type of life insurance. They may be unhappy with what their policy has to offer. 

How to Get Term Life Insurance 

When you are ready to get term life insurance, you should focus on shopping with an independent agency or agent who specializes in senior coverage. They can shop with a variety of different life insurance companies to help you find the best option. 

Working with an agent who has experience in senior coverage is very beneficial and will help to ensure that you choose the right insurance for your needs. They will better understand what you need from your life insurance policy and can guide you in the right direction. 

One of the benefits of working with a single agent or agency is that they do not work directly with a specific company. This means that they will not be biased toward a certain company. They will not push you to choose one company over another based on their commission. 

An independent agent or agency can help you to make the best choice based on all of your options from a variety of different insurance companies. 

Sample Term Life Insurance Quotes for Seniors 

Before you choose a life insurance policy, it can be useful to look at sample quotes. This helps you to compare your options and understand how much you might be paying each month. 

It is important to also get personalized quotes for term life insurance for seniors. These will be more accurate, based on your age, amount of coverage needed, and other important factors. Life insurance is very personal and varies by a number of different factors. Still, it can be useful to look at sample quotes in the meantime. 

Here are sample term life insurance quotes for seniors: 

Sample term life insurance rates for 60-year-old males:

  • 10-year term with $25,000 worth of coverage: $27.67 monthly
  • 10-year term with $40,000 worth of coverage: $41.18 monthly
  • 20-year term with $25,000 worth of coverage: $36.27 monthly
  • 20-year term with $40,000 worth of coverage: $54.94 monthly

Sample term life insurance rates for 60-year-old females:

  • 10-year term with $25,000 worth of coverage: $23.26 monthly
  • 10-year term with $40,000 worth of coverage: $34.12 monthly
  • 20-year term with $25,000 worth of coverage: $30.68 monthly
  • 20-year term with $40,000 worth of coverage: $45.99 monthly

Sample term life insurance rates for 70-year-old males:

  • 10-year term with $25,000 worth of coverage: $70.86 monthly
  • 10-year term with $40,000 worth of coverage: $110.29 monthly

Sample term life insurance rates for 70-year-old females:

  • 10-year term with $25,000 worth of coverage: $56.54 monthly
  • 10-year term with $40,000 worth of coverage: $87.38 monthly

Sample term life insurance rates for 80-year-old males:

  • 10-year term with $25,000 worth of coverage: $210.87 monthly
  • 10-year term with $40,000 worth of coverage: $334.30 monthly

Sample term life insurance rates for 80-year-old females:

  • 10-year term with $25,000 worth of coverage: $179.07 monthly
  • 10-year term with $40,000 worth of coverage: $283.42 monthly

In general, term life insurance is the most affordable type of life insurance available to seniors. In most cases, coverage amounts begin at $25,000. Sometimes, they can go as high as $10 million, but smaller coverage amounts are more common and easier to find. 

Note that many insurance companies will not offer term life insurance beyond 10 years to seniors. This is why the sample rates only last for 10-year terms after the age of 70 years old. 

Summary 

Term life insurance is a good option to keep in mind if you are looking for life insurance. It only lasts for a set term, such as 10, 15, or 20 years. It is simple and easy to understand. It is also an easy type of life insurance to get. For seniors, this can become a little bit more difficult, especially after the age of 70. 

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If you’re a senior looking for coverage then you’re at the right place. We are an independent agency that specializes in getting coverage for seniors. We shop around with all of the best life insurance companies for seniors and get you the best rate without there being a cost to you. Contact us today and let us help you find the perfect policy.