Best Affordable Life Insurance for Seniors Over 60

Finding the right life insurance for seniors is all about finding peace of mind. It’s about making sure your loved ones are taken care of and not constituted in financial anguish when you are no longer there to take care of them. This guide will be working you through everything you need to know.

Our dealing with you will be as candid and courteous as possible. Because this is the legacy you’ve got: Love, not debt!

Planning for the future is one of the greatest gifts that you can give your family. It exhibits foresight and great care.

Therefore, let’s face this important decision hand by hand. We will make it simple and clear and stress free.

Why Thinking About Life Insurance for Seniors is a Gift to Your Family

As we enter our golden years, we change our financial priorities. You’ve been working your whole life to make a safe future for yourself.

Now, you want to save your spouse, children or even grandchildren from unexpected expenses. This is the main role and purpose of life insurance for seniors.

At times final expenditures really can be remarkably high. These include funeral expenses, burial expenses, and cremation expenses. The funeral cost averaged can easily exceed $10,000.

Additionally, there may be leftover medical bills, credit card debt or a mortgage. A life insurance policy makes sure these burdens don’t fall on your family’s shoulders at a no-win time in any case.

At the same time, it’s not just about settling debts, either. It can be a matter of making a legacy. Small inherits by a grandchild for an education. Money donated to a favorite charity. Or just having a financial cushion for your spouse.

Ultimately, this is a decision of control. You get to decide what your last chapter is written and you want your family to remember you for the love you shared and not the bills you left behind. This is why it is a proactive step to get life insurance for seniors.

Expert Insight: According to AARP, “Life Insurance Can Be A Critical Tool For Older Adults Looking To Cover Final Expenses, Pay Off Debts Or Leave A Financial Legacy, And Make Sure Their Loved Ones Aren’t Left With A Financial Burden.”

Understanding Your Main Options for Life Insurance for Seniors

When you begin shopping, you’ll run into a number of different types of policies. It is sometimes overwhelming to get started.

However, for the over 60s, the choices typically fall into three major categories. Each of them has a specific purpose and a different price tag.

Understanding these differences are the keys to locating the most affordable and the target plan with respect to your unique needs. Let’s breakdown on a one by one basis.

Option 1: Term Life Insurance for Seniors

Term life for seniors is also often the most affordable option. It offers’ cover for a specific period, or ‘term’, of, say, 10, 15 or 20 years.

If you die during the course of the term your beneficiaries receive a tax free death benefit. If the term is up and you are still alive, then you are no more. You can sometimes renew it but then the premiums will be much higher.

This type of policy is best if you have temporary debts, such as a mortgage that will be paid off in 10 years. It’s also great if you want to make sure your spouse is covered for the first couple of years of being on their own.

Because of the fact that it’s temporary, its premiums are significantly lower than permanent policies. This makes it a choice that can be easily accessible to many. However, it’s important to not forget that it is not a permanent solution. You are essentially renting your coverage.

Many people find that when they start their journey they find comparing term insurance vs whole life insurance to be the first step forward.

Option 2: Whole Life Insurance for Seniors

A form of permanent life insurance is whole life insurance for seniors. As the name implies, it covers you through your entire life, as long as you pay the premiums.

The premiums are higher than term life, but are locked in. They will never go up, no matter your age or whether you feel healthy or not. This allows for predictable budgeting.

A principle aspect of whole life is its “cash value” side. Part of your premium payment is increased in a tax deferred savings account. You can take out loans against this cash value or even take out the policy for the cash.

This makes whole life insurance for seniors a financial asset. It’s intended for those who desire a specified true coverage, on a lifelong basis, and who are willing to pay more up-front. It is one of the most stable life insurance plans available.

Option 3: Senior Final Expense Insurance (Burial Insurance)

Senior final expense insurance, or burial insurance, is a very popular choice among the over 60.

Technically, it’s a small-scale whole life policy. The amounts of the coverage are significantly lower, as they usually range from $5,000 to $25,000.

The sole use of this insurance is to cover final costs of expenses. This includes the funeral, the cremation, the memorial service and any outstanding small debts. The application process is amazingly easy.

Many policies do not offer no medical exam life insurance. You just have to answer a few questions regarding health. This accessibility makes it a lifeline to those suffering from pre-existing health conditions that would be denied other forms of coverage. Because of its specific use, the burial insurance costs are affordable for most budgets.

How Much Does Life Insurance for Seniors Cost?

This is the most common question and the answer is: it depends. Things such as your age, gender and health, the type of policy, and how much coverage you get all have a role in this.

In general the younger and healthier you are the less your premium will be. Women also tend to make lower payments than men because they tend to live longer.

To give you an idea better clear, let’s consider some estimated months rates. These figures are for non-smokers who are in good health, and is for illustrative purposes. Your actual rates will vary.

Estimated Monthly Rates for Seniors (Non-Smoker)

As you can see, affordable life insurance over 60 is affordable, especially with term life. In this case, the most important thing is to balance the price with the coverage you really need. Finding the solution of these numbers help to understand what is fit for your budget. Your health can also affect costs, just as how pre-existing disease affects health insurance premiums.

Pros & Cons Comparison

This responsive card layout helps users visually compare two popular options.

The Truth About No Medical Exam Life Insurance

The phrase, “no medical exam life insurance” is very appealing. It sounds easy and fast but often times, it is.

However, there are two different types and it’s really important to get to know them. The consequences of choosing the wrong one can be very significant. This is an essential part of being able to find the right life insurance for seniors.

These policies are particularly beneficial for people who have perhaps been declined for traditional health insurance plans in the past.

Let us consider the two major categories.

Simplified Issue vs. Guaranteed Issue

Simplified Issue Life Insurance is the most common kind of no exam policy. You skip the medical exam, but then you have to answer health questions on the application.

These questions are regarding your medical history. For example, they will inquire about heart disease, cancer, diabetes and other serious conditions. Based on your responses, the insurance company determines whether you can be approved.

Approval is quick, as little as an instant or a few days. The rates are higher than a fully underwritten policy but lower than Guaranteed Issue.

Guaranteed Issue Life Insurance is just what it sounds like. There is no guarantee that you will not be accepted. There is no medical examination and there are no health questions.

This is a policy of last resort. It’s for people with serious health issues who cannot qualify for any other type of life insurance.

Because the insurer assumes enormous risk, however, these policies have two major trade-offs. First, the premiums made are the highest Second, they always have a “graded death benefit.” This means were you to pass away due to natural causes during the first 2-3 years, your beneficiaries only receive the premiums you paid back, plus interest. The full death benefit will only be paid after this waiting period.

Medical Exam Checklist

This interactive-type checklist can help users determine whether they need a medical exam or not.

Smart Strategies for Finding Affordable Life Insurance Over 60

Finding affordable life insurance over 60 is very possible by the right approach. It’s not only the “cheapest” plan you want to pick up, but the “smartest” one for your needs.

Here are some strategies that are proven to help you get a good policy without breaking the bank in the process.

1. Buy Sooner Rather Than Later: The single biggest factor in determining your premium is your age. A policy for a person 61 years old would be cheaper than the exact same policy for a person 62 years old. If you are thinking about it do it now. Waiting will only add to the cost.

2. Compare, Compare, Compare: Don’t take the first quote you get Insurers carry health conditions differently. One company may be rigid when it comes to diabetes, but another company may be more lenient. Working with an agent that is independent and can shop the market for you is invaluable. This is the way you find the best life insurance companies for your situation.

3. Choose the Right Coverage Amount: Be realistic when it comes to coverage needs. A $500,000 policy may not be necessary anymore. Calculate your actual debts and final expense estimates when determining the right amount. A smaller, more inexpensive policy that remains in force is preferable to a large, expensive one you eventually have to cancel. A good tool can help you calculate the right life insurance coverage.

4. Think About Your Health: If you’re a non-smoker, and you’re in good health, use it to your advantage. Take the medical exam in order to prove it and get the lowest rates. If you have some health issues, be honourable on your application for a simplified issue policy.

This is a much better proactive approach rather than settling for a high cost guaranteed issue plan unless absolutely necessary. Thinking towards your life insurance for seniors is like thinking in the retirement healthcare, when you might pass from group health insurance towards an individual plan.

Common Hurdles and How to Overcome Them

Applying for life insurance for seniors can sometimes be problematic, but almost all of them can be overcome.

Hurdle 1: Pre-Existing Conditions. Many seniors have concerns that they think they are ineligible because of disease such as diabetes, high blood pressure, or because they had a heart attack years ago.

Solution: This is very rarely the case. There are many insurers who specialize in “impaired risk.” They have a tendency to work with seniors who have common health issues. Be confrontational about your condition. An independent agent will be able to match you with the right carrier.

Hurdle 2: The Cost. As we’ve seen, the premiums become higher as your age increases. A limited budget can make it seem like an impossible idea.

Solution: Concentrate on more modest amounts of coverage. A $15,000 final expense policy, on the other hand, is much more affordable than a $100,000 whole life policy. It can still give immense relief to your family covering in most immediate costs.

Hurdle 3: The Waiting Period. The 2-3 year graded benefit on the Guaranteed Issue policies can be a concern.

Solution: Understand that this is only specific to non-accidental death. If death is caused by an accident, the full benefit is usually paid from the first day. Also, this policy is better than no policy whatsoever. If you survive to continue to the time limit, you are fully covered. This is a small price to pay for a guaranteed acceptance. Many get this to be comparable to a waiting period for a no-claim bonus, in other kinds of insurance.

Expert Insight: According to a report by Forbes Advisors “Even with health conditions, most seniors can find some form of life insurance.” The key is to work with an independent broker who has access to multiple insurance companies and who will be able to find a company that sees your health profile most favorably.

Choosing the Right Policy: A Final Checklist

You’ve learned about the various forms of life insurance for seniors and how to get a cheap rate. Now it is time to make a decision.

Use this last checklist to guide you in your choice.

• What is my primary goal? Is it to pay a mortgage (Term Life)? Or to pay for the funeral costs (Final Expense)?. Or to leave an inheritance permanently (Whole Life)?
• What is my realistic monthly budget? Be honest with yourself. Choose a premium you can comfortably pay for the long term.
• What is my health status? This will lead you towards a full underwritten, simplified or guaranteed issue policy.
• Do I want coverage to expire or do I want coverage for life? This is the fundamental difference between term and permanent life insurance.
• Have I compared quotes? Get at least 3-5 quotes in order to insure you get a competitive price on your individual profile.
• Do I understand the claims process? Make sure your beneficiary knows where the policy is and how to file a claim. The process should be straightforward, not complicated like a disputed car insurance claim.

Answering these questions will make you much nearer the perfect policy. This final check is one way of making sure your choice of life insurance for seniors is a well-informed one.

For more information about planning for aging, the resources of the National Council on Aging can be very helpful. Similarly Investopedia has some great tips on avoiding common mistakes. Lastly, the official site of the U.S. government gives information on the rules of funerals and costs.

Conclusion: Securing Your Legacy with Life Insurance for Seniors

Choosing the right life insurance for seniors is a very big act of love. It’s a last and good thought for the people who are the most important for you.

We’ve discussed the major choices that are available and they include affordable term life for seniors, permanent whole life insurance for seniors, and affordable senior final expense insurance. We’ve also touched on how burial insurance costs are determined as well as how no medical exam life insurance works.

Remember to shop sooner, get quotes and be realistic about your needs to find affordable life insurance over 60 which your budget can afford. Your health status does not need to be a problem; there are options for just about anyone.

By taking this step, you are taking a heavy financial weight off your family’s shoulders. You are giving them their space in grief to not be stressed. You are putting into permanent form your legacy of care and protection. This is the ultimate worth of life insurance for seniors.

Frequently Asked Questions (FAQ)