As you age your needs change. Someone who is in their twenties might only require limited burial insurance coverage to make sure their parents don’t have to pay for outstanding school debt and a funeral if they pass away unexpectedly.
Someone in their forties with a dependent spouse and three kids still living at home might need a comprehensive life insurance policy to make sure that the spouse would be able to pay off any remaining debt and have access to regular income in their absence.
Banner Life Insurance for Seniors
If you are a high-risk individual this company is best. They are a leader among life insurance companies with great customer service and they have a net worth of 415 billion dollars.
They have been working since 1949 and they provide term and permanent life insurance policies. In fact, their term policies allow users to apply for coverage up to 95 years of age.
Most companies, by comparison, have a cut off twenty or thirty years lower. They also have some of the highest Financial ratings from Standard & Poor’s, A.M. Best, and Fitch Ratings. They also have some of the best life insurance rates for seniors on the market.
Lincoln Financial Group Life Insurance for Seniors
Lincoln Financial Group has been around since 1907 and is currently a Fortun 250 Company. They manage over $14 Billion in assets and serve millions of Americans with their life insurance coverage.
Lincoln Financial also has very high financial ratings and offers some of the cheapest life insurance rates for seniors on the market.
They do not offer life insurance without a medical exam, so seniors in less than optimal health may want to shop around for other options. However, for those that are healthy, Lincoln Financial term life insurance that is convertible to whole life until age 70 at a very affordable rate.
One additional upside to Lincoln Financial’s life insurance coverage is that they offer great riders such as:
Each one of these offers additional coverage, and are commonly available for many other insurance companies, though not all are always offered.
Mutual of Omaha Life Insurance for Seniors
Mutual of Omaha has been one of the best life insurance companies for over 150 years. During this time, they have come to manage over $42 Billion in assets, are a Fortune 500 Company, and provide life insurance to over 3.5 million Americans.
Protective Life Insurance for Seniors
Protective Life was founded in 1907, and today has grown to manage over $75 Billion in assets, offering life insurance to all 50 United States.
AIG Life Insurance for Seniors
AIG is the best option for its company size. People who might be pushed into a lower-class rate because of size will find that this is a better option.
AIG provides a life insurance policy to over 90 million people worldwide and they have been operating since 1919 providing term and permanent policies.
Best Life Insurance Rates for Seniors
Now that we have learned a bit about the best life insurance companies for seniors, let’s take a look at some of the best life insurance rates for seniors for a few different scenarios.
Note that for the tables below, applicants were in good health and non-smokers looking for policies with $500,000 of coverage. Rates will change based on health and smoking habits, and certain coverage may not be available to people with specific health complications.
Best Life Insurance rates for males over 50:
|50||10 Year Term||$41/mo.||$33/mo.|
|20 Year Term||$74/mo.||$55/mo.|
|30 Year Term||$125/mo.||$97/mo.|
|55||10 Year Term||$70/mo.||$51/mo.|
|20 Year Term||$119/mo.||$89/mo.|
|30 Year Term||$239/mo.||$173/mo.|
|60||10 Year Term||$112/mo.||$75/mo.|
|20 Year Term||$205/mo.||$139/mo.|
|65||10 Year Term||$198/mo.||$124/mo.|
|20 Year Term||$394/mo.||$254/mo.|
|70||10 Year Term||$322/mo.||$200/mo.|
|15 Year Term||$495/mo.||$284/mo.|
|75||10 Year Term||$647/mo.||$424/mo.|
|15 Year Term||$1,177/mo.||$723/mo.|
|80||10 Year Term||$1,514/mo.||$1,159/mo.|
|85||10 Year Term||N/A||N/A|
As you can see, life insurance only becomes more and more expensive as you get older. Due to this, it is recommended that you get life insurance as early as you can.
When life insurance is needed for seniors who cannot afford this coverage or people who do not have as many financial dependents, there is another option: burial insurance. We will elaborate more on the types of life insurance available for seniors next.
Best Policy Types for People Over 50
Once you turn 50 your needs might change. You can accomplish different goals with different types of policies.
Permanent Life Insurance
Permanent life insurance policies have some unique qualities, including the ability to be invested and make gains based on portfolios and index performance in the stock market.
Policies accumulate cash value and are able to be borrowed against on a no interest basis. Additional cash values are paid out to beneficiaries and can sometimes be used to pay premiums.
Whole life insurance is a type of permanent life insurance. These policies can be useful, but become very expensive later in life. These are not recommended for those looking for small coverage amounts, or who are on a limited budget.
Term Life Insurance
With term life insurance, it is best to secure rates as young as possible to keep them low.
For seniors with health complications, or who are 75+ term life insurance is probably not the best bet, but for those who are between the ages of 50 and 70, it may be best for you if you are not looking for coverage that lasts the rest of your life, or if you do not expect to outlive the term of your policy.
For those in poor health, term can be expensive, guaranteed issue whole life, or what is often called burial insurance may be best for you.
Burial Life Insurance
While burial insurance only covers $10,000 to $100,000, policies are relatively cheap when compared to term life insurance and larger whole life insurance policies.
These policies are perfect for seniors looking for small coverage amounts at affordable rates.
Best Life Insurance Companies for Over 50
Figuring out which company provides the best life insurance is not nearly as simple as you might think. Just because you receive quotes from top rated providers doesn’t mean that you have chosen the best policy for your age.
|Company||Policies Offered||A.M.Best||Customer Reviews|
||A+||4.5 / 5|
||A+||4.2 / 5|
|Mutual of Omaha||
||A+||4.1 / 5|
||A+||4.3 / 5|
||A+||4.2 / 5|
Other Requirements As You Age
As you age the underwriting requirements for each life insurance company changes. The tests which are required medically get more expansive.
The older you are the more likely it is that you will have to undergo medical tests and the more likely it is that you will have to undergo more medical tests.
If you are applying for $500,000 worth of coverage at age 44, you might have to take a blood test and a urine test. By comparison, if you reach a certain cut off and you now are 45, you might have to take that same blood and urine test along with an EKG to verify the health of your heart.
This is simple business again because as you age you are more likely to have serious health complications.