Life Insurance for Senior Citizens
As we become older, typical life insurance packages become less affordable. What's more, costs soon outweigh the benefits to be had. Nevertheless, life insurance for the senior citizen remains important and attainable.
After all, peace of mind can come from the assurance that our loved ones will be financially accounted for on our passing, or that the full cost of burial and cremation will be covered.
Common Life Insurance Amounts For Seniors:
| $10,000 | $15,000 | $20,000 |
| $25,000 | $30,000 | $40,000 |
| $50,000 | $75,000 | $100,000 |
| $250,000 | $500,000 | Other Amount |
Many life insurance companies understand the issues related to older men and women, and are now offering attractive insurance packages for older people.
There's no requirement for a medical examination in order to purchase insurance either, so there is no need to worry about pre-existing medical conditions, which can of course have an impact upon the premiums.
Analysing A Policy Before Buying
Before making any commitment however, it's wise to consider the benefits on offer when purchasing a policy. Reflect upon the advantages and disadvantages to each insurance package.
For obvious reasons, a senior term life insurance policy is somewhat different to a standard life insurance policy. Therefore, when assessing which policy is the best, questions have to be asked that are relative to the policy type - price, duration, convertibility, riders, etc.
As a senior, it may not be in your best interest to buy term life insurance. Your investment should be made in whole life insurance which is permanent, and this way the premiums will never change.
The face value (death benefit) of the policy will never decrease, and there is also a guaranteed cash value.
Final Benefits
The amount of final benefits on offer through a senior life policy will of course be less than the standard policy. This can make it more affordable.
Typically, any children in your immediate family are grown and fully reliant on their own income, which in turn means that the financial benefits of taking out a senior policy can be less. This tends to mean there is more flexibility in the type of package.
For example, insurance can be taken out to cover expenses such as funeral and cremation. In North America, average costs involved with a funeral are around $7,500. Cremation will require a further $3,000.
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Otherwise, insurance may be used to provide an income for a spouse for the duration of their lifetime.
Cash Value of a Whole Life Policy
Perhaps you as the insurance holder would prefer a cash component to your policy? If so, you may be able to take out insurance where there's a “cash value” which builds up over time. It's this cash which may very well provide for a source of retirement income.
In other cases, where there's a large estate involved, a senior term life insurance policy can be utilized to help mitigate some of the tax liabilities which are to be imposed upon the estate.
As we become older, life insurance should not be viewed as another unnecessary expense. In many regards, it is in fact more important now than ever before. Along with senior life insurance comes many attractive benefits for both you as the policy holder, and also for your loved ones.
One thing to remember, the younger you are, the more affordable the life insurance policy will be. So start comparing rates today.
Here are some cost examples for a 10 year policy for females over 65, non-smokers:
| AGE | $25,000 | $50,000 | $100,000 | $200,000 | $300,000 | $500,000 |
|---|---|---|---|---|---|---|
| 65 years old female | $35.86 | $40.71 | $38.16 | $65.92 | $82.16 | $147.75 |
| 66 years old female | $39.39 | $43.48 | $42.62 | $72.51 | $88.55 | $163.31 |
| 67 years old female | $44.14 | $45.46 | $47.72 | $81.16 | $94.32 | $177.65 |
| 68 years old female | $48.27 | $49.10 | $53.11 | $85.53 | $101.47 | $194.35 |
| 69 years old female | $52.42 | $54.34 | $59.10 | $95.53 | $112.40 | $220.45 |
| 70 years old female | $56.55 | $59.19 | $65.30 | $105.34 | $129.35 | $245.16 |
| 71 years old female | $64.46 | $63.91 | $74.32 | $117.57 | $152.30 | $273.10 |
| 72 years old female | $72.39 | $67.73 | $85.55 | $133.31 | $174.16 | $305.90 |
| 73 years old female | $80.30 | $74.79 | $95.67 | $152.36 | $195.32 | $353.75 |
| 74 years old female | $88.24 | $83.10 | $110.16 | $171.59 | $ 223.46 | $398.16 |
| 75 years old female | $96.16 | $91.67 | $118.62 | $192.59 | $257.31 | $457.55 |
Make sure to get your own quote, because these values will most likely change for your specific situation.
Here are some typical premiums for a 10 year term policy for non-smoking males age 65 and over:
| Age | $25,000 | $50,000 | $100,000 | $200,000 | $300,000 | $500,000 |
|---|---|---|---|---|---|---|
| 65 Year Old Man | $43.32 | $55.76 | $65.76 | $123.74 | $143.43 | $235.94 |
| 66 Year Old Man | $48.83 | $61.43 | $72.46 | $139.04 | $156.89 | $257.79 |
| 67 Year Old Man | $54.32 | $67.76 | $81.48 | $157.06 | $172.48 | $283.55 |
| 68 Year Old Man | $59.86 | $74.77 | $91.70 | $177.71 | $191.80 | $315.88 |
| 69 Year Old Man | $65.36 | $82.60 | $103.77 | $201.86 | $216.41 | $356.56 |
| 70 Year Old Man | $70.86 | $92.56 | $117.79 | $229.79 | $245.45 | $405.23 |
| 71 Year Old Man | $80.39 | $103.81 | $133.28 | $260.76 | $278.43 | $460.45 |
| 72 Year Old Man | $89.91 | $116.51 | $150.85 | $296.01 | $317.01 | $525.56 |
| 73 Year Old Man | $99.46 | $130.84 | $170.98 | $336.46 | $365.46 | $603.41 |
| 74 Year Old Man | $108.98 | $147.01 | $195.08 | $382.46 | $422.54 | $700.43 |
| 75 Year Old Man | $118.51 | $177.56 | $220.41 | $435.24 | $493.94 | $819.43 |
If you are aged 76, 77, 78, or 79 years old. Or even in your early eighties - 80, 81, 82, 83, 84, 85 - you'll have to speak to a life insurance specialist for your rates.
