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Best Life Insurance for Seniors in 2023

  • Life Insurance
  • Sara Sam
  • 5 minutes

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Seniors have unique needs when it comes to life insurance. This is because they may have different financial obligations and dependents to consider. The best life insurance for seniors will depend on various factors such as age, health condition, financial situation, and preferences. Here is a guide to the best life insurance for seniors, types, coverages, and companies.  

Why is senior life insurance important? 

Needs and financial situation are the two major factors that govern your decision to buy an insurance policy. When it comes to seniors, we might think of life insurance as a liability, but there are several reasons why senior life insurance is important.  

  • Life insurance can help cover outstanding debts, medical expenses, and end-of-life expenses, providing financial security for seniors and their families.  
  • Life insurance can provide a source of income for their loved ones in the event of the senior’s death. 
  • As we become senior citizens, estate planning is crucial, and life insurance can provide funds to cover estate taxes or for wealth transfer. 
  • Seniors also have access to better rates when taking their health into account.  

What are the factors to consider when choosing life insurance for seniors? 

Age of the insurer 

 As you get older, higher will be the insurance premiums. Therefore, one must make sure one chooses the plans according to age. For example, specific plans exist for seniors over 60 and over 70.  

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The health of the policyholder 

Any pre-existing medical condition can increase the premium rates. So, choose the policy accordingly.  

Coverage amount 

The coverage needed may vary depending on the financial situation, debts, and final expenses. 

Affordability 

The premium rates can vary with the type of policy, frequency of payments, and duration of coverage. Therefore, one must plan based on their financial situation.  

The reputation of the insurance company 

When choosing a provider, reputation, financial stability, and customer service must be considered.  

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Types of Life Insurance Policies for Seniors 

Based on the general requirements of seniors, these are the types of life insurance policies that can be opted for by seniors.  

Term Life Insurance 

Affordability is what makes term life insurance suitable for all age groups. This type of insurance is available for periods like 10, 20, or 30 years. However, the policy will expire after the term ends. 

Permanent Life Insurance 

Whole life and universal are the two kinds of permanent insurance. These will provide life insurance for the policyholder’s entire lifetime. There is an added cash value component that can grow value over time. Therefore, permanent life insurance is also a mode of investment.  

Is a Universal Life Insurance Policy a Good Investment?

Simplified Issue Life Insurance 

If you are looking for benefits covering funeral expenses and giving a small inheritance, then simplified issue life insurance is a good option. In addition, it doesn’t require a medical exam; a health questionnaire is filled out instead. 

Guaranteed Life Insurance 

It is the best choice for seniors who aren’t in good health. This is because it doesn’t reject claims on health grounds or require any medical examination. However, it has higher premiums and less coverage. 

Life Insurance for Seniors Over 60 and 70 

When we look at insurance specific to age, one can consider final expense or supplemental insurance. In other words, these would be enough to cover the funeral expenses and other end-of-life costs. Similarly, supplemental insurance can equip you financially during severe illness.  

If you are over 70 and looking for life insurance, then it is advised that you opt for either final expense or supplemental insurance. In other words, choose policies that do not need a health examination.  

Therefore, when considering life insurance for seniors over 60 or 70, it is better to avoid whole life or universal insurance, which can be expensive.  

Best Senior Life Insurance Companies 

Based on factors like age, gender, health, and desired coverage, the best life insurance provider will be different for each individual. Here is a cherry-picked list of the best senior life insurance companies.  

Prudential 

If you are over 60, Prudential provides the best policy options and coverages. In addition to flexible income requirements, Prudential offers competitive coverage options for seniors with asthma and depression.  

Protective 

If you are ready to undergo a medical examination, Protective can offer seniors the cheapest life insurance. It provides term lengths of up to 40 years and coverage for those with specific health conditions. However, it is not available in Newyork.  

Mutual of Omaha 

In addition to the no medical exam requirement, it provides the best coverages for guaranteed issue life insurance. Mutual of Omaha might be slightly expensive, but it stands out regarding financial stability and customer satisfaction. Similarly, it can opt if you plan for a final expense policy. 

Pacific Life 

Pacific Life offers affordable coverage to seniors above 60 and 70. It also has flexible coverage and even a minimum coverage of $50,000 for term policies.  

Foresters Financial 

Since living benefits insurance is a common choice among seniors, Foresters Financial is a good option if you are looking for one. In addition, the company also offers an accelerated death benefit rider.  

How much does life insurance cost for seniors? 

Age, gender, policy type, and coverage limits affect senior life insurance costs. A 10-year term policy with $250,000 coverage costs $85 per month for a 60-year-old and $222 for a 70-year-old. The more coverage higher the monthly premiums.  

Final Expense Insurance: Is it the Right Choice for Seniors? 

Also known as burial or funeral insurance, it is frequently used with traditional whole and term life policies to cover funeral expenses. There are several reasons why final expenses insurance is a good choice for seniors. Firstly, a health test is not required; a health questionnaire can be answered instead. Secondly, the rates are less affordable and sometimes run as cheap as $15. For example, the average monthly rate for a final expense life insurance for a 65-year-old male is $35 for a $5000 benefit, while it stands at $45 for a $10 000 benefit.

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