Term Life Insurance for Seniors: the Options

Many people who are seniors may not be aware that there are numerous insurers competing for their business. It may be the time to start planning for the financial well being of the the people you love. A term life insurance for seniors policy may be the solution for you. Coverage includes:

–  Payment of estate taxes

–  Paying off outstanding loans

–  Transferring a business

–  Money to pay for final expenses (funeral, etc)

Health and Eligibility

The majority of insurance companies ask for a thorough medical examination before they enroll you in term life insurance for seniors. Weight, age, blood pressure, sex, cholesterol, family history, and your medications are considered during the initial underwriting. Medical examinations performed would be more thorough than those that would be performed on a younger applicant.

People who have do not feel comfortable in doing a medical exam have another option in the form of life insurance application without a medical examination. These policies which are available for ages up to age 80 range in price from $2,000 to $14,000 per year.

What is the Age Limit to Purchase Term Life Insurance for Seniors?

An insurance company will rarely accept a applicant over 75 years old for permanent or whole life insurance. A person up to the age of 65 can still be accepted to senior term life insurance for a period of 20 years. There have been numerous cases where applicants purchase coverage above the age of 70. In certain states, people can enroll in term coverages even after the age of 75.

How Much Does Senior Term Life Cost?

Seniors should make a thorough analysis of the benefits contained in a term life policy. The monthly premium of term life insurance for seniors can fluctuate. A 60 year old individual in good shape with no family history of illness will usually pay $120 per month for $100,000 of coverage for a 20 year term. However, a person aged 65 with a good medical prognosis will be paying, on average, $158 every month for $100,000 of coverage for ten years. The key is to stay healthy for those critical years between 60 and 65.

What is Important?

The senior term life applicant should know the financial needs of their loved ones. You should put a dollar amount that will sufficiently satisfy those needs. Every senior term life application has its own unique considerations. There is no one size fits all answer to these questions.

Insurance companies that specialize in seniors, on the other hand, find it difficult to figure out what your actual needs are. Licensed agents that specialize in this field would be your best bet. A licensed agent that knows the senior market ( including knowing the various companies that sell to this market) would be your most valuable resource.

For information as to which senior insurance coverage is best for you, contact one of our licensed insurance advisers. Unfortunately, you may find yourself lost in this ocean of insurance options. Don’t worry because you are not alone. Insurance is a complex topic and we are here to help.