Insurance companies base their rates based on a person’s evaluated level of risk. They assess factors like the age, lifestyle and health of their applicants. Because of this, many people think that there is no way seniors can get life insurance. But the truth is that seniors can get insurance options as long as they know where to look.
Life insurance for seniors can be expensive because of the level of risk involved. Read on to learn more about the cost of term life insurance for seniors.
Why Term Life Insurance for Seniors?
Generally, the majority of insurance providers do not offer level term coverage to older adults for over 15 years. Thus, there is no point for seniors to think about permanent or whole life insurance. Other insurers do not underwrite policies for anybody who is 65 years old unless it’s a conversion policy. So the perfect option for seniors without coverage is to purchase a senior term life insurance policy.
How Much Coverage to Buy?
The amount of coverage to purchase depends on why a senior is getting it in the first place. Do they want their final expenses coverage? For this purpose, they can get an amount between $10, 0000 to $25,000. If they want to ensure they can leave their family some tax-free money for paying their debts or estate taxes, then they can choose to buy coverage of between $100,000 and $1, 000, 0000. The decision depends on the seniors. To be sure about how much to get, they can talk to their spouse, kids, financial advisor or attorney.
What’s the Real Cost?
Seniors can choose from 10-year, 15-year and 20-year term life insurance, although it can become harder to find affordable life insurance for seniors who are more than 70 years old. Their age, gender and health say a lot in determining their premiums. For instance, a male 60-year old senior who doesn’t smoke could pay $60 annually for $250,000 coverage compared to the $172 that a non-smoker 70-year-old healthy senior should pay for the same coverage. Also, the cost depends on the chosen term plan, with the rates tend to be more expensive for the 20-year term plan.
We can help you find insurance companies that provide the most affordable term life insurance for seniors. Our senior life insurance calculator makes the search a breeze. If you want to compare insurance quotes, just click the “Get Quote” button that you can find in our pages.