Life insurance rates for seniors: What you need to know

Why life insurance matters for seniors

Life insurance isn’t just something to think about when you’re younger – it can be just as important, if not more so, as you get older. Even if you no longer have young children or a mortgage, there are still reasons why having a policy in place might be a smart move.

One of the biggest reasons is covering final expenses. Funerals, unpaid medical bills, and other remaining debts can add up quickly, and without life insurance, those costs may fall on your loved ones. A policy can ease that burden, ensuring everything is taken care of without creating financial stress.

If you have a spouse or other dependents, life insurance can provide financial support after you’re gone. Whether it’s replacing lost income, helping with daily expenses, or ensuring a surviving spouse can maintain their standard of living, a policy can make a significant difference.

Even if you’re financially secure, life insurance can help with estate planning. It can cover taxes, legal fees, or any other costs that come with settling an estate, making it easier for your heirs to handle everything.

Best types of life insurance for seniors

Seniors have a few different life insurance options, but not all are easy to get or cost-effective. Here’s what you need to know about each type:

• Term life insurance. This is usually the cheapest option, but it only covers you for a set period (like 10 or 20 years). If you only need coverage for a specific time – say, until your mortgage is paid off – this can be a great choice. 
• Whole life insurance. This type lasts for your entire lifetime and builds cash value over time. It’s more expensive than term life, but it guarantees a payout no matter when you pass away. If you want lifelong coverage and can afford the premiums, it’s a solid option.
• Final expense insurance. Also called burial insurance, final expense insurance pays out a small death benefit to cover funeral costs, medical bills, and other remaining debts. It’s easy to get and fairly affordable compared to more substantial life insurance policies. The downside? It’s more expensive and usually offers lower coverage amounts. It’s best for people who just need enough to cover funeral costs and a few other final expenses.

As you get older, traditional life insurance can become harder to purchase. Some companies have age limits, and health issues might make it difficult to qualify or lead to really high premiums. Final expense insurance is one option if other policies aren’t available because it doesn’t require a medical exam. While the coverage amounts are smaller, it can help ensure your loved ones aren’t left with unexpected expenses.

How much life insurance costs for seniors

Because final expense insurance is the most accessible coverage option for seniors, we pulled rates for simplified issue life insurance, one of the two types of final expense insurance. 

How much life insurance costs for $30,000 in coverage

How much life insurance costs for $40,000 in coverage

How much life insurance costs for $50,000 in coverage

Why did we choose simplified issue life insurance?

While traditional term and whole life insurance are cheaper than final expense insurance, they are sometimes unavailable to seniors. Serious health conditions or age can disqualify some older adults from getting traditional coverage. 

When traditional life insurance isn’t available, seniors can opt for final expense insurance. Simplified issue is a type of final expense insurance that doesn’t require a medical exam and is available to most people who are ineligible for traditional term or whole life insurance, barring a terminal illness. Coverage amounts are lower than traditional life insurance. 

While the premiums are higher, this type of coverage makes it easier for seniors who are otherwise ineligible for life insurance to get the protection they need.

Factors that affect life insurance rates for seniors

Several factors influence the cost of life insurance for seniors, including:

• Age. Insurance premiums rise as you age because older individuals are considered higher risk.
• Health condition. Pre-existing medical conditions, chronic illnesses, and overall health status significantly impact the cost of coverage.
• Lifestyle habits. Smoking, alcohol use, and risky activities can lead to higher premiums.
• Coverage amount. The higher the coverage, the more your premium will be.
• Policy type. Term life insurance is generally more affordable than whole life insurance but may not provide lifetime coverage.

Why does life insurance cost more for seniors?

Life insurance tends to get more expensive as you age, mainly because insurers consider older applicants a higher risk. 

“As a person’s age increases, the risk of health-related problems and fear of death also increases, and insuring them becomes more expensive,” says Nick Schrader, owner of insurance broker Texas General Insurance in Houston.  

Health plays a huge role, too. Many seniors have pre-existing conditions like high blood pressure, diabetes, or heart issues, which can drive up costs or make it harder to qualify for traditional policies. Even if you’re in good health now, insurers factor in the likelihood of medical issues developing over time.

“To cover this risk, almost all insurance companies charge higher premiums,” says Schrader. 

How to find affordable life insurance as a senior

Although life insurance rates are based on health and age, there are still ways to save on premiums. 

“Seniors can still find ways to save,” says Yehuda Tropper, CEO of life insurance settlement company Beca Life Settlements in New Jersey. “For example, they can opt for a lower death benefit or look at a term life policy with a shorter term.”

Here are a few more tips to spend less than you need to on life insurance premiums: 

• Compare quotes. Prices vary between companies, so shop around to find the best deal.
• Improve your health. Before applying, work on lowering your blood pressure, quitting smoking, or maintaining a healthy weight.
• Consider a smaller policy. If cost is a concern, go for a policy with a lower death benefit or shorter term.
• Work with an independent agent. A good insurance broker can help you compare policies and find one that suits your needs and budget.

How to get the best rates on life insurance as a senior

Getting the best rate on life insurance as a senior comes down to choosing the right type of policy and comparing options. If you’re in good health, term or whole life policies might still be available at a reasonable rate. If you have health concerns, simplified issue or final expense insurance can provide reliable coverage without needing a medical exam. It’s important to shop around to see what you’re eligible for. No matter what, securing a policy now ensures your loved ones are protected and your final expenses are covered.

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