Term Life Insurance Rates for Seniors, How Much Does It Cost

In this article we will look at how much seniors have to pay for term life insurance. We will look which products are available for you which varies depending on your age.  

The cost for term life insurance will depend on the amount of coverage you need and the length of the term. It should be pretty obvious that the more coverage you want the more it costs. Perhaps not so obvious though is that the longer the term policy covers you for the more it costs as well.

The amount you will have to pay for coverage will also greatly depend on your overall health and lifestyle habits.  For instance if you smoke cigarettes you will pay more than someone who is a nonsmoker. If you have a few more pounds on you than you should you will pay more.  And if you’ve had various health issues such as diabetes for example, you’ll have to pay more than someone would have to pay that doesn’t have diabetes all things being equal. Understand that with life insurance there’s approximately 12 different rate classes that you could be approved for.  The better the rate class you get approved for the less you have to pay. 

Other factors considered include your driving record, any bankruptcy’s you might have had, travel history outside the country, and if you have had any felonies or misdemeanors.  

Know that just because you have high blood pressure or have had a bankruptcy for example, this does not mean you cannot get coverage.  In fact, you could even be approved for the best rates an insurance company offers.  

For instance, let’s say you have a high blood pressure but that it is under control because you are taking medication.  Most insurance companies would approve you with the best rates they offer. However, let’s say you have high blood pressure that is not in control, and you aren’t taking the medication the doctor has prescribed for you to treat it. Well, that would be a problem. Insurance companies want to know that you are doing your best to take care of yourself.  

Same thing with bankruptcy for instance. If you had a bankruptcy 10 years ago this wouldn’t matter to most insurance companies.  However, if you have had multiple bankruptcies or are currently in bankruptcy that would make a difference. It’s very likely your rates would be higher. Also, you may not even be able to get coverage perhaps depending on how many bankruptcies you’ve had and your overall financial situation.

How Rate Classes Determine the Cost You Have to Pay

As mentioned above there are about 12 different rate classes that you could be approved for.  The best rate class an insurance company has is usually called either super preferred or preferred plus.  It’s the same thing, just different companies call it something different.

After that most companies usually have preferred, standard plus, and standard.  These are the top 4 rates classes. If you get approved at a rate class below standard this is called substandard.  These categories are also called table ratings. It starts with table 1 typically, and goes down to a table 8. Most companies use table ratings to a table 8.  Some companies go to table 12 or even 16 but they are the exception not the rule.  

Below are some very general guidelines as to the overall health you have to be in to be approved for the various rate classes. Having said that, as we mentioned above, health is just one factor. our overall lifestyle habits play a role as well.

Super Preferred – Great health and overall medical history

Preferred – Very good health and overall medical history

Standard Plus – Good health and overall medical history

Standard – Average health and overall medical history

Table rating 1 through 8 – substandard ratings

Cost of Term Life Insurance Rates for Seniors

The most common types of term life insurance include 10, 15, 20, and 30 year term. For seniors though at certain ages you are limited as to the length of the term that you can get. Here’s how it works with most companies:

10 year term – You cannot purchase past age 80.

15 year term – You cannot purchase past age 75.

20 year term – You cannot purchase past age 70.

30 year term – You cannot purchase page age 55

If you need coverage for longer know that you can get it. For instance if you are 70 years old and want to get a policy that will last beyond your 90th birthday you can do it. It just isn’t called a term policy. We will discuss that in a little bit. First let’s look at some sample term life insurance rates for seniors.

$100,000 – 60 year old non smoking man in great health

10 year term – $29 monthly

15 year term – $37 monthly

20 year term – $52 monthly

$100,000 – 60 year old non smoking man in average health

10 year term – $51 monthly

15 year term – $69 monthly

20 year term – $91 monthly

$100,000 – 60 year old woman in great health 

10 year term – $24 monthly

15 year term – $28 monthly

20 year term – $36 monthly

$100,000 – 60 year old woman in average health

10 year term – $38 monthly

15 year term – $49 monthly

20 year term – $66 monthly

$100,000 – 65 year old non smoking man in great health

10 year term – $52 monthly

15 year term – $67 monthly

20 year term – $97 monthly

$100,000 – 65 year old non smoking man in average health

10 year term – $87 monthly

15 year term – $116 monthly

20 year term – $161 monthly

$100,000 – 65 year old woman in great health 

10 year term – $35 monthly

15 year term – $44 monthly

20 year term – $63 monthly

$100,000 – 65 year old woman in average health

10 year term – $59 monthly

15 year term – $80 monthly

20 year term – $112 monthly

$100,000 – 70 year old man in great health

10 year term – $86 monthly

15 year term – $120 monthly

20 year term – $204 monthly

$100,000 – 70 year old man in average health

10 year term – $151monthly

15 year term – $209 monthly

20 year term – $309 monthly

$100,000 – 70 year old woman in great health

10 year term – $58 monthly

15 year term – $76 monthly

20 year term – $160 monthly

$100,000 – 70 year old woman in average health

10 year term – $93 monthly

15 year term – $131 monthly

20 year term – $237 monthly

$100,000 – 75 year old man in great health

10 year term – $151 monthly

15 year term – $276 monthly

$100,000 – 75 year old man in average health

10 year term – $263 monthly

15 year term – $401 monthly

$100,000 – 75 year old woman in great health

10 year term – $111 monthly

15 year term – $188 monthly

$100,000 – 75 year old woman in average health

10 year term – $180 monthly

15 year term – $314 monthly

$100,000 – 80 year old man in great health

10 year term – $393 monthly

$100,000 – 80 year old man in average health

10 year term – $636 monthly

$100,000 – 75 year old woman in great health

10 year term – $291 monthly

$100,000 – 80 year old woman in average health

10 year term – $412 monthly

Term Life That You Are Guaranteed To Not Outlive

Term life insurance is the most popular type of life insurance for seniors, because it is the most affordable.  And if your need for coverage is temporary, then you should definitely buy a term life policy. There is no point in paying any more money for coverage than you absolutely have to. However, if you don’t foresee your need for coverage going away at some point for whatever reason, then a term life policy may not be the best option for you.  

For instance let’s say you are 70 years old.  You could buy a 20 year term policy, but you may be concerned you will live past age 90 and therefore outlive the coverage.  Another solution is a product called a guaranteed universal life (GUL) policy. It is not a term policy. Having said that it acts a lot like a term.  With a term life policy, as long as you pay the premium your policy will stay in force. If you die the insurance company will pay the benefit to your beneficiary.  It’s pretty simple.

A guaranteed universal life policy can be designed to do the same thing.  As long as you pay the premium the policy is guaranteed to stay in force. It can stay in force until the age that you select.  Many companies now allow you to pick an age between 90 and 120. So if you want, you can have a policy that is guaranteed until you are age 95 for instance. Or pick an odd number like age 97 for instance. Having said this, not all insurance companies let you pick an exact age like this. This is just one reason to work with an independent agent that represents dozens of highly rated insurance companies, and can work with you to customize a life insurance policy that works for you and stays in force for as long as you it to.  

The bottom line is this.  You can have your policy guaranteed to stay in force to pretty much any age you like. Just remember like we said before, the longer the policy will stay in force for the more it will cost.  With that said, keep in mind there is actually very little difference in cost between age 110 and 120 for instance. The simple reason is that very few people live past age 110.  

What Should You Do Next

Hopefully at this point you have a good general idea of how much seniors should expect to pay for life insurance.  Next step is figuring out which company will look at your application most favorably and offer you the best rates. That’s where we come in.  We specialize in helping seniors secure the coverage they need, with a quality insurance company, at the best possible price.  

Give us a call.  We are happy to help.  Also, if you like you can run a life insurance quote yourself.