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In Today’s Article I’m Going To Be Discussing The Best Term Life Insurance For Seniors While Also Revealing The Best Companies And Rates Available. Best term life rates.
Most likely you are here, because you are interested in some sort of term life insurance and you want to get the best value that you can find. Maybe you’re shopping for somebody you love to get them a quality term life insurance product.
If this describes you best, then make sure you stick around, relax because we’re going to do a very detailed analysis of what term insurance is, and describe how it works.
Then we are going to look at some options and prices based on some of the variables involved and getting qualified for a term life insurance product for senior.
Let’s get started.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation on best term life insurance for seniors. Enjoy!
Here is an overview of our discussion on the best term life insurance for seniors.
Best Term Life Insurance Options Available for Seniors
Insurance Riders, Definitions And Types Available
How Much Term Life Coverage Can A Senior Qualify For
How Does Term Life Insurance Works For Seniors?
Let’s start off by first answering what this term life insurance mean. How does it work for seniors?
The definition of term insurance is a simply term life insurance provides a death benefit payout over a pre-determined period of time, a block of time. What I mean by that, when you buy a term insurance policy, essentially what happens is that the coverage is good for 10 years, 15 years, 20 years or 30 years, whatever the specific length of time is.
If you die within that period of time, whatever the amount of coverage is on the policy, that payout is paid to your beneficiary whoever it is.
Generally with term life insurance for seniors, the best plans to have what’s called level insurance or level of premiums. What that means? Simply is that when you’re quoted a price for a term insurance product, let’s say you decide to do business, because you like this idea.
When you get a quote, that price remains the same throughout that block of time. Is it most commonly does, but for the length of time, the 10, 15, 20, or more years, whatever the length of the time is.
The premiums are level the entire time. I believe, and most people will too, that this is one of the best way to get the most coverage for the least premium spent.
A lot of people buy term insurance for all sorts of obligations they need to cover. But the truth is, if you do have a large obligation and you’ve even compared this to permanent coverage like whole life or universal life, the term insurance gets you more bang for your money.
You are going to get more coverage for every dollar of premium that you pay compare to other life insurance options. A lot of people are attracted to term insurance because it has the capability of covering these large financial obligations at a much lower premium than other options.
Once you’re approved with the term life insurance option, essentially the product works the same as any term life insurance coverage. I mean, you may be thinking, well, I’m a senior. This must be something that is different or maybe is it not really, as long as you go through the approval process and you get a decision that says you’re approved.
Then it acts just the same as any other particular type of life insurance. It’s just if you get a 15 year term it last for 15 years, there’s nothing that’s uniquely different for you.
Being a senior is the point I’m trying to make. The bottom line upon death during the term death benefits are paid directly to the beneficiary. Whatever your reason for purchasing it, which we’ll get into in a moment, whoever that beneficiary is, will receives the money.
Look, regardless of you being a senior or shopping for someone as a senior. Term insurance plays the same role as the same kind of coverage for your age or somebody younger maybe like myself.
Reasons why seniors consider buying term life insurance
Why should seniors consider buying term life insurance? There are several reasons why seniors should consider buying a term life insurance program. Now, I’m not going to say that it’s the appropriate solution for every circumstance, but what you’ll find is that, this is a good option for certain financial obligations must be met if death occurs prior to a certain point in the future.
The very first reason why somebody would buy term insurance is for funeral expenses. This is probably the least likely reasons to buy it. But a lot of people buy a small term insurance plan because they look at what’s necessary and then compare it to whole life and they know they need some kind of coverage.
But they opt for a term life insurance plan instead because it gives them more coverage for a lesser premium. A lot of people who are looking for something that may not be able to pay full price go the term insurance route.
What is individual life insurance
Even for something like a funeral or cremation type of coverage program people buy term life insurance. And for our seniors is an income replacement why they purchase term insurance. Now this is something you may not have considered, but let’s walk you through this scenario.
Let’s say you’re married, you have a spouse and both of you are on social security or maybe one of you is disabled, both of you require your incomes combined together to manage, to live whatever lifestyle you have.
Now imagine one of you walks out the door and has gone passes away. Well, that income may not entirely go away. You may assume the pension plan they’re paying. If you have it set up that way, but most likely what’s going to happen is your income will be altered upon your passing or your spouse’s.
The question you have to ask yourself as, how does that effect your lifestyle? Can you pay your bills? Can you pay your mortgage? Can you live in the same type of context that you do today with your spouse alive?
If you’re not a hundred percent certain that everything will be the same, then you need to consider buying a term insurance plans to cover for income replacement. It can be small amounts, it can be large amounts, but income replacement plans are excellent ideas to cover because we just don’t know when we’re going to die.
If you know your lifestyle is going to be effected. May cause you to move out of your home or move back in with your kids and you don’t want that to happen, then this is a good reason to buy one just in case something happens.
Another reason people buy term insurance to seniors, it’s a gift of love. Maybe they want to leave money behind some of the love they care about and the best way they know how to do it is to buy an affordable term life insurance plan.
I’ll give you a perfect example. My grandfather died not too long ago and left behind to my mother a $7,000 army plan he’s had since the 1950s. Well, mom didn’t know about this. She didn’t expect it, but once you received it was the perfect timing because she had a rotting roofs.
She needed it repaired and those roofs, they are not cheap. Grandpa’s money went right to the roof. Mom got it taken care of and she was super excited and happy that she didn’t have to go into debt or take out our own savings to take care of it. It was a huge help.
Another reason why senior need to buy term insurance plan it will as his mortgage payment protection plan. This kind of coincides with this income replacement approach. If you think about your mortgage payments that you’re paying, imagine if one of you passes away, how would that affect your income?
Well, it may affect you being able to pay your mortgage. You can purchase a term life insurance plan that pays a lump sum death benefit, which will either a, pay off the mortgage entirely. Or you can stick into your savings account and then deduct every month the mortgage costs so that the surviving spouse doesn’t have to immediately get out of the house and a fire sale situation.
It gives breathing room to the surviving spouse so they can pay off these debts, get situated, put the house on the market, maybe clean up the house and then sell it at top dollar price. It allows for space and time that maybe you otherwise wouldn’t have had.
Also term insurance is great for loan pay downs, maybe own land, maybe you own maybe have credit card debt. You just want enough to take care of these final expenses. These are all great reasons to own a term life insurance as a senior.
Best Term Life Insurance Options Available for Seniors
Let’s talk about the best term life insurance available for senior. Generally speaking here or the term life insurance options available senior. Like I said, kind of talked about earlier, you’ve got different lengths of time that you can have a term insurance plan, maybe 10, 15, 20 or 30 year term length.
Again, you can custom tailor this to some extent if these links are available at your age. The older you are, you don’t necessarily get the longer periods of time available. But the point is. you can costume design to some extent the length of time you want your term will last.
You’ll also have access to what’s called universal life insurance. The universal life insurance essentially without going in too broad of a definition, is a hybrid plan that has some characteristics of term insurance as well as some characteristics of permanent insurance.
It’s a solution we use if we don’t have the longer term period of term insurance available because of your age. Let’s say you’re 75 years old, probably I can get a 30 year term, but you could get a universal life plan that will last to 95 or a hundred and five or whatever it is in that length of period of time.
What I’m going to do now is take you over to my quote and quickly show you some prices at different levels for 100,000 dollars in term insurance. Now I will just tell you minimums and maximums. We’ll get into those later, but we can go less than 100,000 but we can definitely go more than 100,000.
I’m just going to show you a term insurance plans for a 65 year old female and male. But if you’re older than that, there’s definitely pricing available carriers that will write you, ages above 65 years old. Let show you some options and just give you an idea of what’s available as a senior.
For a 10 year level term insurance product for a 65 year old non-smoking male. And again, the idea here is just to show you some sample rates for what will you consider someone to be who is in excellent health. This is not a quote that I necessarily can qualify you for.
Please understand that this is just for educational purposes only. We can see here 100,000 dollars for 10 year terms will go between low 50 to upper 70 depending on the company that you’re ultimately qualified for.
For a 10 year term insurance product for females, 65, non-smoker, mid- thirties to lower fifties is what you’d be looking at price wise. Now we’ve cranked it up to a female 65 year old, 15 year term is the mid- fifties to the lower seventies.
A 20 year term for a female who’s 65 who doesn’t smoke is going to be between this low seventies to mid-nineties.
And here’s a 25 year term for 100,000 dollars for a 65 year old female nonsmoker. You can see different pricings available depending on your eligibility and a health status.
Here’s a 15 year term for male, 65 non smoker, 100,000 in coverage, upper sixties to mid-nineties. A 20 year term is going to be basically ran $100, $230 a month.
And a 25 year term for 100,000 dollars, 65 year old terms is going to be in the mid 100 to 200. What I’m selling you is a no lapse guarantee. Universal Life Program. These are what I would suggest using if 25 year terms or just not enough time and these are more permanent and design.
They last a little bit longer, with specifically you’re looking at the core. If you could qualify for that product, it would be a basically permanent coverage if you continue to pay the same premium that you start off with as long as you keep it.
And as long as you’re alive, the 65 year old female non-smokers. And if we look at males, hundred thousand dollars, 65 year old non-smokers, you’re looking at again to hundreds to upper 200.
Those were just, again, sample prices. I can’t stress enough that these are not guarantees that you can even qualify for them.
Your health will have an impact on your eligibility for insurance. A don’t want to pull the punch here. It’s just the God honest truth. Your health is unique and will have immediate and direct impacts on your insurability.
The best way to figure this out, what you can qualify for is to simply contact me and I’ll be happy to run a quote for you and show you what your options would be and then proceed from there.
Insurance Riders, Definitions And Types Available
Now we’re going talk about riders and what are they and how and why you should consider them. Rider simply are just like add ons or upgrades to your life insurance policy that gives you additional benefits beyond just the death benefit payout.
What are the types available riders, depending on the competence include the following stuff like critical illness payout. So these would be if you got diagnosed with cancer or a stroke or heart attack, you get a pay out to yourself, and the idea behind this, it’s a living benefit.
You can take that money to pay the doctor bills, pay for travel expenses. If you say have cancer and had go back and forth to get chemotherapy. That’s just offsets all the expenses involved with a lot of these critical illnesses you may come down.
There’s also at some points with some products, is called return of premium. Where if you pay the entirely of the insurance product and you get to the very end of paying it in, those premiums are refunded to you.
It does cost a substantial amount more, but it is appealing to some people with the idea that, I can get my money back after paying all those years. It’s also what’s called an accelerated death benefit with some of these plans were essentially if you’re diagnosed with a terminal medical illness, then the insurance company will pay a portion of your death benefit before you die.
I n that way you can manage your affairs while you’re alive versus allowing someone else when you pass away. Also the nursing home riders to offset some of the costs, if you are put into a nursing home. But you need to understand that these will add additional costs on top of your Life Insurance plan, they are not free.
They’re just like going to a car dealership and upgrading from, regular seats to leather interior. It’s going to cost you more money. It’s just the way it is. And if is something you’re interested in, some of these insurance plans, not all of them, it may not even be available to you at this age. You know, just wanted to let you know.
Exam or No Exam
Also, maybe you’re asking, should I get an exam or maybe saying I don’t want an exam, I don’t like that, and being poked and prodded. Let’s talk about exams and if they’re necessary.
Qualifying for term life insurance examinations are sometimes but not always required. It’s going to depend on the amount of coverage, the type of product or even company you go with. One of the exam is done is you’ve got to pee in a cup, draw blood from you and they do give you some sort of physical.
They’re going to ask you a series of health questions. They’re going to do your height and weight. This is all stuff that is customary whenever you do a physical examination. Now some carriers only require a signature for approval, this is pretty neat and straight forward.
These are what they called non-medical exam or medical policies. The concept of this is very simple. You sign off on it and then all the medical records are pulled off from your doctors or from a medical database, and then your insurability is determined from that.
That simplifies the process and allows a lot of these exam fears to be completely eliminated. Some literally just require a phone interview. The only reason I would suggest taking an exam is that first of all, you’re in tip top shape.
A lot of companies began to get a little bit leery about ensuring a senior without an exam over certain amount of coverage. Again, it depends on the company. That depends on the amount of policy, but if you are getting a lot of coverage, it’s probably worth your time to get an exam. Because getting an exam is the most up-to-date information that the insurer has to determine your insurability.
Homeowners insurance companies
Usually if you’re healthy enough, you get a much better price for taking an exam. I wouldn’t take an exam if you’re looking for a small amount of coverage and that’s usually under $100,000.
Again, it just depends on the circumstances at those levels. Most companies have competitive products available. If you shall work with a broker like me, I can shop it around and find the company that’s not going to do an exam but still give you a really good rate.
How Much Term Life Coverage Can A Senior Qualify For
Let’s talk about how much coverage can you get? How much do you want? Is really the question to answer. As long as you work with an independent life insurance agent, you really should have the access to how much you really need. I work with companies that start at $25,000 in term life insurance for seniors. And some others will start at $50,000.
Again, it depends on the company maximum coverage. If you don’t want an exam range from a $250,000 to$ 400,000 coverage it’s just going to depend on circumstances. But just kind of a top level amount that if you want millions of dollars in coverage, it can be done, but you’re probably you’re going to have an examination it’s just part of the course.
What If Your Health Is Bad
What if your health is bad? We’ve talked about how we can do exams or not, but maybe you’re just flat out concerned if you do any kind of exam or to answer any health questions, it’s going to be a bad outcome. The short question is, if you have a bad health can qualify for some kind of life insurance?
And again, the long answer, it just depends on really what the definition of bad health is. Let me give you some examples of bad health that I think are not eligible for a term insurance, but maybe for a, what’s called a simplified issue, whole life insurance plan or final expense plan or some kind of guaranteed issue.
If you’ve got COPD(Chronic Obstructive Pulmonary Disease), severe diabetes, insulin dependency, recent cancer, heart, liver and kidney problems. Or you’ve been hospitalized for something serious in the past year, and severe behavioral issues or even cognitive problems, these are going to be problems in getting coverage.
But with term insurance it’s probably a much better direction to go and get coverage with one of these alternatives. If you think you have bad health and you think what I just mentioned fits you, here are some non-term life insurance options.
How To Qualify
You may want to consider, what’s called first day full coverage, final expense life insurance. The idea behind this is that final expense coverage is what’s called simplified issue. They only go back the last couple of years to come up with insurability decisions and they don’t require an exam.
A lot of people will go this route if their health has just deteriorated, but they know it’s important to have some kind of coverage on the books. There’s also what’s called return of premium coverage. This is if literally nothing works.
Your health is just not good enough for anything other than this. This will refund your premiums you paid in if you die within the first few years, but beyond that, you’re fully covered.
First day coverage, like I said, you’re fully covered for natural accidental death, from the effective date of the policy. Again, in a simplified issue, whole life policy and a return of premium guaranteed issue plan, you’ve got to wait two years for natural death coverage. And the only reason I’d consider a return premium plan as if literally no other options exist.
How seniors can qualify for term life insurance program? It’s very simple actually. You just simply pick an agent you like and hopefully that’s me because I can definitely help you.
The next step would be talk to me so that I could get an idea of what you’re looking for.
Draw you up a quote, and assuming you liked the quote, we would simply apply for coverage. Either mail you an application but probably more likely just email it to you or do it over the phone. You definitely don’t need to see me in 99% of circumstances nowadays. Usually it takes a day, couple of days, weeks, but you’ll get a decision and if it’s good, you’ll be approved for coverage. And If not, we’ll just take it from there.
Sometimes other company will do it several weeks later, usually get your policy and literally that is all you need to do to get the best term life insurance as a senior. If you’re interested in qualifying for term life insurance, here’s what you do. Go to my website click on the contact box at the top or the message box below and send me a message
Let me send you a free quote after I asked you some health questions or simply call me at 888- 636-0439. We can speak live and I’m happy to help you out. If you call that number and I don’t pick up, leave a voicemail. I do take a lot of calls during the day and I’m not necessarily readily available at all times.