Senior Life Insurance: Whole Life Or Term?

Senior citizens can opt for whole life insurance, which provides coverage for their entire life cycle. Whole life insurance is a good option for seniors who want to ensure their family receives benefits upon their death. While the coverage amount may decrease with age, whole life insurance policies typically offer a death benefit that is paid out to beneficiaries when the plan ends. Whole life insurance is also a good option for those who want lifelong coverage that builds cash value over time.

Whole life insurance for seniors over 60

Whole life insurance is a good option for seniors because it offers a guaranteed death benefit, ensuring that your loved ones will receive a generally tax-free gift when you pass away. Whole life insurance is also referred to as permanent life insurance because it doesn't expire as long as you make your payments. It is more expensive than term life insurance but is still an option for seniors over 60.

Whole life insurance for seniors can give you the peace of mind that comes with knowing that your family will not be left with bills after you pass away. It can help your family with several common end-of-life costs, such as funeral expenses, mortgage payments, and medical bills. While the coverage offered by whole life insurance policies for seniors may not be as high as those available to younger people, they still offer significant benefits.

The cost of whole life insurance for seniors depends on factors such as age, gender, and health. The older you are, the more expensive the policy will be. Additionally, whole life insurance policies for seniors typically offer coverage ranging from $10,000 to $50,000. To get the best rates, it is recommended to lock in an affordable rate early on and maintain regular payments.

Benefits of Whole Life Insurance for Seniors Over 60

Whole life insurance policies build cash value over time, which can be borrowed against in an emergency. The premiums for whole life insurance also remain the same, providing a sense of security for seniors concerned about managing their finances. Furthermore, whole life insurance can be a good option for seniors who are unable to qualify for term life insurance due to age or health restrictions.

Things to Consider

When considering whole life insurance for seniors over 60, it is important to keep in mind that the application process may require a medical exam and health questions to determine eligibility. Additionally, the coverage amount may be lower compared to policies purchased at a younger age.

Whole life insurance for seniors over 80

Whole life insurance is available for people over 60, and it can ensure that your family is financially secure after you are gone. While the coverage amount is lower than what you could get as a fully underwritten policy when younger, whole life insurance for seniors can help cover several common end-of-life costs.

When you reach 80, the options for senior life insurance become more limited, and the cost of coverage increases. However, the good news is that at this stage in life, you may not need as much coverage. Most adults in their 80s have paid off large debts, their children are usually financially independent, and they may have savings and assets that can cover any remaining debt.

Final expense insurance, also known as burial or funeral insurance, is often the most suitable and affordable option for seniors over 80. This type of insurance can help cover funeral, burial, or cremation costs and other final expenses, such as medical bills. The application process for final expense insurance is typically quick and straightforward, and you may be approved within a few days. The coverage amounts for final expense insurance are generally lower, ranging from $5,000 to $20,000, which helps keep the premiums affordable for seniors in this age group.

For those over 80 who want to leave behind a larger sum of money, traditional whole life insurance policies are also available, but they are more expensive and harder to obtain. The maximum age to purchase a traditional whole life policy is usually 80 or 81, and a medical exam is often required. The death benefit minimums and maximums are higher for these policies, typically starting at $50,000, and the coverage is guaranteed for life as long as the premiums are paid.

Universal life insurance is another option for seniors over 80, but it is even more challenging to qualify for and comes with higher premiums. This type of insurance combines features of term and whole life insurance, offering payment and cash value flexibility. However, if you withdraw too much cash value or pay too little, your premiums may increase significantly or the policy may terminate prematurely.

When considering life insurance options as a senior over 80, it is essential to carefully review the policies offered by different companies, as the availability, requirements, and costs can vary. It is also important to note that guaranteed acceptance policies, which do not require a medical exam or health questions, usually have a two-year waiting period and are more costly. Consulting with a licensed insurance agent or financial professional can help you navigate the available options and choose the most suitable coverage for your needs.

Whole life insurance for seniors over 85

Whole life insurance is available for people over 60, and it can give you the peace of mind that comes with knowing that your family will not be left with bills after you pass away. While whole life insurance for seniors does not grant the same amount of coverage as the fully underwritten policies you can purchase when you are younger, they still offer significant benefits.

The cost of life insurance for seniors over 85 depends on several key factors. Final expense insurance, also called burial or funeral insurance, is one of the most affordable plans for seniors over 85. Most seniors in their 80s looking for life insurance only need money to pay their funeral and other final expenses, such as medical bills. They don’t need whole or term policies worth tens or hundreds of thousands of dollars, especially because the premiums for these plans are very high for people in their 80s. In many cases, they’re not even available to adults in this age group.

That’s why final expense insurance is one of the best senior life insurance options at this age. In addition to low rates, there are many other pros to getting burial insurance over other policies when you’re in your 80s. As long as you pay your premiums, your plan doesn’t expire. Your payments are also fixed as long as you continue to pay them. You may also be able to take out a loan against the policy’s cash value. Most of the time, you only have to answer a few health questions on the application rather than take a medical exam. The application process is quick and easy, and you may be approved within just a few days.

Seniors who want to leave behind a large lump sum of cash as well as pay for funeral costs and other final expenses often buy whole or term life coverage along with burial insurance. However, both are more difficult and more expensive to buy when you’re in your 80s. Term life insurance options are very limited and very expensive for seniors over 85. There are only a few companies that offer them, and those that do require a health exam. The longest term you can buy is usually 10 years, and if you outlive the policy, you won’t receive the death benefit.

Burial insurance is the best whole life insurance policy for seniors over 85, but it is even more expensive than term policies because it’s permanent as long as the premiums are paid. Plus, 80 is often the cutoff to buy these plans, so you won’t be eligible if you’re older.

Whole life insurance with a medical exam

Whole life insurance is a type of permanent life insurance that provides coverage for the entire life of the policyholder. It tends to be more expensive than term life insurance, but the death benefit is certain. Whole life insurance policies also accumulate cash value over time, which can be borrowed against or withdrawn. While whole life insurance is available for seniors, the coverage amount is typically lower compared to what can be purchased at a younger age.

When applying for whole life insurance, a medical exam is often required as part of the underwriting process. The exam helps assess the applicant's health and determine their insurability, as well as the premium amount. The exam usually consists of a questionnaire and a basic physical exam. The questionnaire covers topics such as family medical history, current and previous doctors' contact information, and details of current diagnoses. The physical exam includes measurements of height, weight, body mass index (BMI), pulse, and blood pressure. Additional tests, such as an electrocardiogram (EKG) or cognitive ability test, may be required depending on the applicant's age and the insurer's requirements.

To prepare for the medical exam, it is recommended to eat healthily, avoid certain medications and alcohol, increase water intake, and get sufficient sleep in the days leading up to the exam. On the day of the exam, wearing lightweight and short-sleeve clothing can make the process more comfortable.

While some insurers offer no-exam life insurance policies, these options may have higher premiums and limited coverage amounts. Fully underwritten policies that include a medical exam tend to provide more accurate pricing and a wider range of options for the applicant.

Whole life insurance without a medical exam

Whole life insurance is available for people over 60, and it can ensure that your family is financially secure after you are gone. While whole life insurance for seniors may not grant the same amount of coverage as policies purchased when the policyholder is younger, they still offer significant benefits.

Some companies offer whole life insurance without a medical exam. This type of insurance can help expedite the process of getting coverage and may be able to help you find better rates and coverage options. However, you may not get as much coverage as policies that include a medical exam, and no-exam policies may cost more.

• You have a history of good health and would like to save time by avoiding a medical exam.
• You have known health issues and are looking to help provide support for funeral and burial expenses on a rapid timeline.
• You are in a rush and need coverage as soon as possible.
• AARP: Best for senior members. Offers term, permanent, and no-exam policies. No medical exams are required, and anyone age 50 and up can get access through AARP membership.
• Country Financial: Best for customization. Offers simplified term or whole life insurance with no exam for those 50 or younger.
• Nationwide: Best for accessibility. Offers a broad age range for this type of coverage, with an issue age of 80 or younger.

Factors Affecting the Cost of No-Exam Life Insurance

The cost of no-medical exam life insurance is based on factors like age, lifestyle, coverage goals, and medical history. Even if you opt for a no-exam policy, your provider may still ask medical questions or use past medical records to make an assessment. Typically, life insurance costs tend to rise as you age.

Frequently asked questions