Life Insurance After 65: Is Term Coverage Possible?

Life insurance is a valuable tool to protect your family and assets in the event of your death. While it may be more challenging to obtain life insurance as you age, it is still possible to secure coverage after 65. Term life insurance offers coverage for a set period, typically 10 to 30 years, whereas whole life insurance provides permanent coverage for as long as the premiums are paid. Life insurance can help cover final expenses, pay off debts, fund charitable contributions, or leave an inheritance. The need for life insurance after 65 depends on various factors, including financial obligations, business ownership, and the desire to leave a legacy. It is essential to carefully consider your unique circumstances and seek advice from a financial advisor to determine the most suitable option for you and your family.

Term life insurance for over 65s

Life insurance can be useful at any age, and there are several reasons why someone over 65 might want to take out a policy. While term life insurance is generally more affordable than whole life insurance, it may be harder to obtain a new policy as a senior citizen.

There are several reasons why someone over 65 might want to take out a life insurance policy. These include:

• To cover final expenses: The average funeral costs between $7,000 and $12,000, and final medical bills can also be covered by life insurance.
• To pay off debt: If you have any remaining debt, such as a mortgage or student loans, a life insurance policy can help ensure you don't leave this debt for your loved ones to pay.
• To leave an inheritance: If you want to leave a financial gift for your spouse, children, or charity, life insurance can help you do this.
• To protect your business: If you own a business, you may be required to carry a certain level of life insurance to ensure your lender is repaid in the event of your death.
• To protect your retirement assets: A whole or permanent life insurance policy can accrue cash value that isn't tied to the market, providing a stable source of funds that can be accessed while you're alive.

Term Life Insurance Options for Over 65s

It is possible to get term life insurance after 65, but it may be more difficult and expensive. Here are some options to consider:

• Term life insurance: Healthy individuals up to age 70 can typically get a term life insurance policy for up to 20 years. The cost will depend on your age, sex, and health, but a healthy 65-year-old man can expect to pay about $110 for a ten-year $250,000 term policy, while a woman's policy for the same death benefit runs about $934.82 a month.
• Guaranteed issue life insurance: If you're not in good health, you may want to consider guaranteed issue life insurance, which offers more expensive coverage but without the possibility of rejection. A $25,000 guaranteed issue policy would cost an average of $103 per month for a 60-year-old man and $76 per month for a woman of the same age.
• Final expense insurance: This is a type of whole life insurance meant to help your loved ones with funeral costs and other end-of-life expenses. It typically doesn't require a medical exam and has lower payouts and more affordable premiums.
• Convert to whole life insurance: If you already have a term life policy, you may be able to convert it to whole life insurance. This will likely result in higher premiums, but it eliminates the risk of outliving your policy.

Things to Consider

When deciding whether to get term life insurance after 65, it's important to consider your unique circumstances and goals. Here are some things to keep in mind:

• Health and family history: Consider your health and family history when deciding on a policy. If you have a healthy lifestyle and a long family history, you may want to opt for a longer-term policy.
• Cost: Life insurance premiums increase as you age, so consider whether you can afford the ongoing costs of a policy.
• Peace of mind: While cost is important, it's also worth considering the peace of mind that comes with knowing your loved ones will be provided for after your death.
• Existing coverage: If you already have a life insurance policy, consider whether it provides enough coverage for your current needs and goals.

Whole life insurance for over 65s

Whole life insurance is a type of permanent life insurance that offers coverage for the policyholder's entire life, provided they keep paying the premiums. Whole life insurance is often used for estate planning and can be useful for those who want to leave an inheritance for their loved ones. It can also help cover final expenses, such as funeral costs, unpaid medical bills, and estate taxes.

For seniors over 65, whole life insurance can be a good option to ensure their loved ones aren't burdened with end-of-life expenses. Some benefits of whole life insurance for this age group include:

• Lifelong coverage: Whole life insurance provides coverage for as long as the policy is active and premiums are paid. This means that seniors don't have to worry about renewing their policy or taking out a new one as they age.
• Level premiums: Premiums for whole life insurance policies typically remain the same, even as the policyholder ages or experiences health changes. This can provide financial security and peace of mind for seniors.
• Accumulation of cash value: Whole life insurance policies can build cash value over time, which can be accessed by the policyholder during their lifetime. This can be useful for emergency expenses or to fund retirement.
• No medical exam required: Many whole life insurance policies for seniors do not require a medical exam for approval. Instead, they may only require answers to a few health questions on the application form.

When considering whole life insurance for over 65s, it's important to keep in mind that premiums can be expensive, especially for older applicants. Additionally, the number of policies available decreases as age increases, and some companies may not offer coverage to applicants over a certain age. It's also worth noting that whole life insurance policies tend to be more costly than term life insurance policies, which only offer coverage for a set period.

When deciding on whole life insurance, seniors should consider their budget, health, and specific needs. Consulting with a financial advisor or insurance agent can help determine if whole life insurance is the best option for their circumstances.

Life insurance for over 65s with health conditions

If you're over 65 and have health conditions, you may be wondering if you can still get life insurance. The good news is that you do have options, although your choices may be more limited and the cost of coverage may be higher. Here are some things to keep in mind when considering life insurance for over 65s with health conditions:

Types of Life Insurance for Over 65s

• Term life insurance: This type of policy covers you for a specific period, usually 10 to 30 years. It tends to be cheaper than whole life insurance, especially for older applicants, but it won't cover you for your entire life.
• Whole life insurance: This type of policy covers you for your entire life as long as you keep paying the premiums. It's more expensive than term life insurance, but it guarantees a payout no matter when you pass away.
• Guaranteed issue life insurance: This type of policy is designed for people with health issues and doesn't require a medical exam or health questions. However, the coverage amounts tend to be small, and the premiums are high.
• Final expense or burial insurance: This is a type of whole life insurance specifically designed to cover funeral and burial costs, which can be a significant expense. These policies usually offer coverage between $5,000 and $35,000, and you're guaranteed to be accepted without a medical exam or health questions.

Factors Affecting the Cost of Life Insurance for Over 65s with Health Conditions

When determining the cost of life insurance for over 65s with health conditions, insurance companies will consider various factors, including:

• Age: The older you are, the higher the risk of passing away, so premiums tend to increase with age.
• Health: Pre-existing health conditions can significantly impact the cost of life insurance. The more severe your health issues, the higher the premiums are likely to be.
• Lifestyle: Factors such as smoking, weight, and overall fitness can also affect the cost of coverage. Improving your health and lifestyle habits can help reduce premiums.

Tips for Getting Life Insurance for Over 65s with Health Conditions

When considering life insurance for over 65s with health conditions, keep the following tips in mind:

• Be honest about your health: It's crucial to disclose any pre-existing medical conditions when applying for life insurance. Failing to do so could invalidate your policy, and your family may not receive a payout.
• Shop around: Criteria and exclusions vary among insurance providers, so it's worth comparing options from multiple companies to find the best coverage for your specific situation.
• Consider a guaranteed issue policy: If you have serious health issues, a guaranteed issue policy may be your best option. While it will be more expensive and have lower coverage amounts, it ensures that you can get coverage despite your health conditions.
• Work with a financial advisor: Navigating the world of life insurance can be complex, especially when health conditions are involved. Consider consulting a fee-based financial advisor or insurance consultant to help you make the best decision for your needs.

Life insurance for over 65s with debt

Life insurance is a valuable tool for people of all ages, including those over 65. It can protect your loved ones financially in the event of your death, disability, or loss of income. Here are some key considerations and options for life insurance for over 65s with debt:

Understanding Life Insurance for Over 65s

Life insurance for over 65s works similarly to life insurance at any age. It provides a financial safety net for your loved ones if you pass away, become disabled, or lose income. The payout from the insurance company can be used to cover funeral expenses, pay off debts, or support any other financial needs your dependents may have.

Types of Life Insurance for Over 65s

There are several types of life insurance available for over 65s:

• Term life insurance: This is temporary insurance that offers coverage for a set period, typically 10 to 30 years. It tends to be more affordable than whole life insurance but may not be available to those over a certain age.
• Whole life insurance: This is a type of permanent life insurance with no expiration date as long as premiums are paid. It is often used for estate planning and can include cash value that can be accessed during your lifetime.
• Universal life insurance: Another form of permanent life insurance, allowing for adjustable premium payments.
• Burial insurance: Also known as final expense or funeral insurance, this is a small whole life insurance policy designed to cover funeral costs, typically offering coverage between $5,000 and $35,000. Some burial insurance policies do not require a medical exam.
• Guaranteed issue life insurance: This type of insurance offers coverage without a medical exam, ensuring acceptance regardless of health conditions. It is often more expensive but can be a good option for those with health issues.

Factors Affecting Cost of Life Insurance for Over 65s

The cost of life insurance for over 65s can vary depending on several factors:

• Age: Older individuals generally pay higher premiums than younger ones.
• Health: Poor health or multiple health conditions can result in higher premiums.
• Gender: Females typically have lower insurance premiums than males.
• Policy type: Policies that generate cash value, such as whole or universal life, tend to be more expensive.
• Tobacco use: Smokers will generally pay higher premiums.

Choosing the Right Life Insurance for Over 65s with Debt

When choosing life insurance for over 65s with debt, consider the following:

• Purpose: Identify the primary purpose of the insurance policy. For example, if it's to pay off a mortgage, a term policy may be suitable.
• Cost: Understand that insurance for seniors can be more expensive. Consider the trade-off between the cost of premiums and the potential death benefit.
• Health: Your health status can impact your eligibility and premiums. No-exam policies may be an option if you have health issues.
• Riders: Consider adding riders to customize your policy, such as long-term care, waiver of premium, or accidental death benefit.
• Company reputation: Research the insurance company's financial strength, customer satisfaction ratings, and any complaints filed against them.
• Comparison shopping: Get quotes from multiple companies and compare coverage and premium options to find the best value.

Life insurance for over 65s with a business

Life insurance is a valuable tool for people of all ages, but it can be especially important for those over 65 who are looking to protect their assets, cover their beneficiaries, and pay for end-of-life expenses. While it can be challenging to obtain life insurance as a senior, some companies offer excellent options for this age group. Here are four to six paragraphs on life insurance for over 65s with a business.

When it comes to life insurance for over 65s with a business, there are a few key considerations to keep in mind. First and foremost, life insurance can provide financial protection for your business in the event of your death. This can include covering any outstanding debts or liabilities, as well as providing a source of income for your family or business partners. Additionally, life insurance can also help facilitate a smooth transition of ownership or management of the business.

Types of Life Insurance for Over 65s

There are two main types of life insurance available to those over 65: term life insurance and permanent life insurance. Term life insurance provides coverage for a set period, typically 10 to 30 years, and is generally more affordable. On the other hand, permanent life insurance offers lifelong coverage as long as premiums are paid and often includes a savings component. Whole life, universal life, and variable universal life are common types of permanent life insurance.

Choosing the Right Policy

When selecting a life insurance policy, it's important to consider your specific needs and circumstances. Key factors to consider include the financial stability of the insurance company, customer satisfaction ratings, the availability of accelerated death benefit riders, and the maximum issue age. Additionally, look for companies with few customer complaints and a transparent application process. Getting quotes from multiple companies and consulting with a financial advisor can help you make an informed decision.

Customizing Your Policy

Life insurance policies can often be customized with various riders to meet your specific needs. For business owners, this may include adding a long-term care rider, which can provide coverage for medical and personal care expenses as you age. Other useful riders to consider include a disability waiver of premium, a spouse's paid-up insurance purchase option, and living benefits. By tailoring your policy with these additional benefits, you can ensure that your business and loved ones are protected in the event of your death.

Case Study: Pacific Life Insurance

Pacific Life Insurance is a highly-rated company that offers term life insurance for applicants up to 75 years of age and universal life policies that guarantee coverage until age 90, extendable to 121. They have an excellent track record when it comes to consumer complaints and customer satisfaction, as evidenced by their low complaint rate relative to their size. Pacific Life also includes a terminal illness rider at no additional cost, which can be especially valuable for seniors. However, one drawback is that Pacific Life, like many other insurance companies, does not offer an online quote or application system, requiring customers to call or go through an agent or broker.

Frequently asked questions