Are you in the market for a senior life insurance policy? There are a lot of options and you will find big difference in the cost of policies.
In this article, we look at the average costs of life insurance policies for seniors. We’ll also look at whether you really need a life insurance policy and, if so, what the different types of policies are.
Average Quotes, Rates and Costs for Senior Life Insurance Policies
Rates for life insurance heavily depend on your age and health status. Other factors that insurance companies will look at are your:
- Weight
- Gender
- Family health history
- Life habits (ie. do you smoke, drink, engage in dangerous activies)
- Occupation
Life Insurance Rates for Senior Women, Non-Smokers (Average Monthly Costs From Top 3 Insurance Companies For a $100,000 Policy From Quotacy)
| Age of purchase | 10-Year Term life | Guaranteed Universal Life | Ordinary Whole Life |
| 65 | $66 | $212 | $349 |
| 75 | $192 | $416 | $623 |
| 85 | N/A | $1,022 | $1,345 |
Life Insurance Rates for Senior Men, Non-Smokers (Average Monthly Costs From Top 3 Insurance Companies for a $100,000 Policy From Quotacy)
| Age of purchase | 10-Year Term life | Guaranteed Universal Life | Ordinary Whole Life |
| 65 | $89 | $255 | $414 |
| 75 | $267 | $489 | $712 |
| 85 | N/A | $1,223 | $1,579 |
Different Types of Senior Life Insurance Policies
Shopping for senior life insurance policies can be confusing. To help make things easier, we’ve created a list of the most common types of life insurance policies available for seniors. This should give you a better idea of the type of life insurance that makes the most sense for you.
There are a few factors that determine which life insurance policy is “best” for you. The main 3 factors are:
- Financial goals
- Age
- Overall state of health
The 4 most common types of life insurance that are available for seniors are:
Term life insurance
Term life insurance is a policy that lasts for a specific number of years. Common lengths of these policies are 10 and 30 years. Once the policy term expires, then you are no longer covered under this type of policy.
Whole life insurance
Whole life insurance is a permanent type of life insurance policy. As long as you keep paying your premiums, it won’t expire. These policies also have a cash value component that can grow over time. You will very likely need a medical exam to get a whole life insurance policy which can be difficult to pass for seniors.
Guaranteed Universal Life
Guaranteed Universal Life which is kind of a blend of between term life insurance and whole life insurance. Usually a guaranteed universal live expires at a set age, commonly 90 years old. Like whole life policies, guaranteed universal life have a cash value and will require a medical exam.
Final expense Insurance
Final expense insurance is used to pay off medical fees and burial expenses. You can keep this policy forever and coverage is often in the range of $50,000 to $100,000. Final expense insurance can also have a cash value.
Up next, do seniors really need life insurance?
Do Seniors Really Need Life Insurance?
If you’re a senior, you may be wondering if you even need a life insurance policy. For some of you, there isn’t a good reason to get a policy. It’s just not worth the cost.
However, for others, there are some good reasons why you should consider getting life insurance.
The main reasons for when life insurance might make sense for seniors include:
- You having outstanding debt that you don’t want your family to have to worry about when you’re gone
- If you have a spouse or child with special needs and the insurance will provide supplemental income to ease their financial burden
- To cover funeral costs
- You have a high net-worth and want the life insurance to cover the estate taxes your heirs will have to pay
- You simply want to leave an inheritance for your loved ones
