Term Life Insurance For Seniors

Instant quotes, critical information & advice

Life Insurance holds a lot of importance for every individual that has dependents to take care of, and debts to pay off. Unfortunately, many people do not realize the importance of life insurance when they are young. However, the need for life insurance becomes a recurring thought as we grow older.

Life insurance for people over 50 can become increasingly more difficult to find as time goes on. Finding affordable life insurance for seniors can become even more difficult, especially for those with health complications.

So what is a senior looking for life insurance to do? Luckily, many insurance providers offer life insurance plans for seniors that can give financial support for your family in the event of your death at affordable rates.

Let’s take a look at some of the best life insurance policies for seniors, and some of the companies that offer them.

Whole Life vs. Term Life Insurance for Seniors

Before we dive into the best life insurance rates for seniors, and where to find them, let’s first take a look at the two main types of life insurance: whole life insurance and term life insurance.

Whole life insurance seems more lucrative at first because it has a compelling cash value. A whole life insurance provides benefit for the duration of the insured’s life with the same amount of premium throughout.

Term Life Insurance plans, on the other hand, last for a particular time period (term) and does not have a cash-back option. Usually, these terms are between 10-30 years. Most policies offer additional riders that allow you to renew your life insurance policy once the term is over, or convert your term policy into a whole life policy.

How to Choose the Right Life Insurance Policy for You

Knowing which life insurance policy to choose is not as easy as it sounds, especially when you opt for a particular company’s insurance agent. Agents generally try to sell you the plan that will yield them the highest commission.

This means that they will not take into account your specific needs and requirements. To avoid this, we always suggest you work with an independent life insurance agent, who works with dozens of companies, in order to truly be able to provide you the best life insurance rates and coverage for your specific situation.

When choosing a life insurance policy, you want to consider what your family’s financial needs will be in the event of your death.  These can be expenses such as:

  • Mortgage and other large loan debts
  • Credit card expenses
  • Necessary funds for beneficiaries to maintain current lifestyle
  • Burial and funeral expenses
  • The legacy you want to leave your beneficiaries

Once major debts have been taken care of by your death benefit, you want to also consider the expenses for funeral and burial.  Believe it or not, the average funeral and burial cost in the United States ranges between $7,000 to $12,000 when everything is said and done!

Next, you want to take into mind how much money your spouse will require to be able to live comfortably in the absence of your income.  If you are both already retired and receiving income from pension or retirement plans, this shouldn’t be a problem.  If you are still working, you should strongly consider how much of your income they need in order to maintain their current lifestyle comfortably.

Lastly, how much do you want to leave for your children, grandchildren, etc..? If you want to plan an estate and have real estate and other assets that you want to be protected in the event of your death, and want to be able to pass along to your family in a safe way, a whole life insurance policy may be a better option for you.  Whole life insurance allows you to invest, establish a trust, and generally plan more for your beneficiaries in the event of your death.

Also, your current financial condition greatly impacts your decision. Whole life insurance is more expensive than a term life insurance. Therefore, if you are following a tight budget, you might want to choose a term life insurance.

Can I Buy Term Life Insurance as a Senior?

Term Life Insurance for Seniors Over 50

Depending on your exact age, life insurance for seniors over 50 options sometimes include 10, 20, and 30-year term life insurance plans.

Here are some examples of term life insurance rates for a 50-year-old man and woman in great health.  Both are looking for $500,000 of coverage over 10, 20, and 30-year term policies.

Term Male Female
10 Year $42/mo. $35/mo.
20 Year $72/mo. $55/mo.
30 Year $125/mo. $97/mo.

Term Life Insurance for Seniors Over 60

Term life insurance for seniors over 60 often includes 10-year and 20-year term life insurance plans.  As you can expect, the older you get, the more expensive your rates become.  Health complications that result from old age and long-term lifestyle choices like smoking also have a heavy impact on the cost of life insurance for seniors.

Here are some examples of term life insurance rates for a 60-year-old man and woman in great health.  Both are looking for $500,000 of coverage over 10, 20, and 30-year term policies.

Term Male Female
10 Year $113/mo. $76/mo.
20 Year $206/mo. $139/mo.
30 Year N/A N/A

Term Life Insurance for Seniors Over 70

Term life insurance for seniors over 70 generally becomes more limited than the previous age groups.  This is because the older you get, the more likely you are to pass away.  It is a sad truth of the world.

Most term life insurance policies only extend to age 75, with the ability to convert to a whole life policy at age 75.  However, there are a few companies out there that offer term life insurance policies for people that cover up to age 85 and 95!

Here are some examples of term life insurance rates for a 70-year-old man and woman in great health.  Both are looking for $500,000 of coverage over 10, 20, and 30-year term policies.

Term Male Female
10 Year $42/mo. $200/mo.
20 Year $72/mo. $532/mo.
30 Year N/A N/A

Term Life Insurance for Seniors Over 80

Term life insurance for seniors over 80 is generally limited to 10-year term policies.

Here are some examples of term life insurance rates for an 80-year-old man and woman in great health.  Both are looking for $500,000 of coverage over 10, 20, and 30-year term policies.

Term Male Female
10 Year $1,194/mo. $952/mo.
20 Year N/A N/A
30 Year N/A N/A

As you can see, traditional term life insurance quickly becomes very expensive very quickly as you get older.  For this reason, we often recommend that seniors look at non-traditional term life insurance policies such as annual renewable term life insurance.

However, even this begins to get expensive over time, as each year it becomes more expensive to purchase. For seniors that cannot afford term life insurance or whole life insurance, there are still other options such as burial insurance and guaranteed acceptance life insurance.

If you are a senior looking for affordable life insurance, we recommend you give one of our independent life insurance agents a call today to speak about your life insurance options for free. We work with some of the industry’s premier life insurance providers, and will help you find the best life insurance for your specific situation.

Age Restrictions Exist for Term Life Insurance for Seniors

A primary consideration for whether or not term life insurance will be a good fit for you is your age.

While each carrier is different and age limits are subject to change, the following is a general guideline for age cutoffs:

  • 80 years old – 10 year term
  • 75 years old – 15 year term
  • 70 years old – 20 year term
  • 65 years old – 25 year term
  • 58 years old – 30 year term

Note: As we get older, the cost of term life insurance will increase, just as it will for all forms of life insurance. Unsurprisingly, the cost of term life insurance for a 30 year old will be less than the cost for the same policy for a 70 year old.

Types of Term Life Insurance

Term Life Insurance can be brokn down into many different subtypes, based on the company you are looking at, the coverage you need, and the health you are in.  For the most part, the 3 main subtypes of term life insurance are:

Level Term Life Insurance

In Level Term Life Insurance, the premium and the benefit remain the same throughout the term of the plan. The payment that you are supposed to make every year, therefore, does not change and can be decided upon after taking into consideration your current and future financial position.

There is no cash value in such a policy, but you can extend the term once the current one expires. The extension, however, will require you to settle for a higher amount of premium since your age increases.

Convertible Term Life Insurance

As the name suggests, this type of life insurance is convertible into a permanent life insurance policy at the end of the term. However, you can only convert a term life insurance policy before you reach 70 or before the term of the policy ends. The premium and the benefit in this kind of policy remain the same throughout the life of the policy.

If you already have a term life insurance policy and are approaching age 70, you may want to speak to an expert soon to discuss your conversion options.

Renewable Term Life Insurance

If you are looking for a coverage that lasts for a short period, then you should consider opting for a Renewable Term Life Insurance. Generally, the term for this type of policy is less than five years.

Because the policy is renewed every year usually, the premiums begin to increase very quickly, to become unaffordable, or just not practical when compared to other life insurance options available.

Generally, renewable term life insurance policies are used by people who either do not expect to outlive the term of their policy or for those who need coverage for a short period of time before finding another life insurance policy for seniors.

What Are The Benefits Of Term Life Insurance For Seniors?

Term life insurance is often an excellent option for seniors who are looking for the following qualities in an insurance policy:

1. Cost-effective

Term is very affordable compared to other forms of life insurance. You are able to secure a larger face amount (policy size) without breaking the bank.

2. Options 

Term can be purchased for various lengths: 10, 15, 20, 25 or 30 year terms.

Note: Age limits exist for term lengths.

3. Convertibility  

Many term life insurance policies can be converted into a permanent life insurance policy – without taking a paramedical exam or proving insurability – should you decide you need coverage to last your whole life.

Note: Restrictions do apply for when conversion is allowed and restrictions vary by carrier.

4. Riders 

Provisions to your life insurance contract that provide additional benefits. Common riders include:

Accelerated Death Benefit 

The option to accelerate a portion of your death benefit, should a qualifying need arise.

Accidental Death Benefit 

Life insurance proceeds are typically doubled (or tripled) if a death occurs as a result of a qualifying accident.

Disability Waiver of Premium 

If a qualifying disability occurs, the option to waive premium payments and keep your policy in force.

How Much Does Term Life Insurance Cost for Seniors?

The premium that you have to pay for a term life insurance policy varies according to your age and medical condition. All life insurance providers do not offer the same rates for people in the same risk profile, and therefore you need to carry out extensive research before deciding on the right provider.

For that reason, the senior life insurance rates we have listed above may not necessarily fit your health profile. However, they serve as a guideline for what types of term life insurance rates seniors can expect.

An independent agent can help you significantly as they are not committed to one of the providers. They understand your unique needs and requirements and then find the cheapest plan possible.

Is Term Life Insurance Right for You? What are Your Other Options?

Seniors generally have five life insurance options to analyze. Term is an excellent choice, but it’s worth taking a moment to view the other four options.

In addition to term, seniors can also purchase:

1. Whole life insurance 

Permanent life insurance that does not expire, as long as you make your premium payments. Key features include –

  • More expensive than term life
  • Accumulates a cash value
  • Underwriting process is similar to term life insurance
  • Not purchased by seniors often

2. Guaranteed Universal life insurance (GUL) 

A branch between term and whole life insurance. Key features include –

  • Less expensive than whole life
  • More expensive than term life
  • Does not accumulate cash value
  • Technically term life insurance that’s designed to last longer that your life (i.e. policies typically last until after age 100)
  • Regularly purchased by seniors

3. Universal life insurance (UL) 

A specific type of permanent life insurance. Key features include –

  • More expensive than term life
  • Accumulates a cash value that is directly connected to investments
  • Premium payments are not level and increase to maintain the integrity of the policy
  • Premium increases, should they happen, are connected to the policy’s investment performance
  • Death benefit is not level
  • Not purchased by seniors often

4. Final Expense (FE) 

A form of permanent life insurance designed to cover end-of-life costs

  • Policies are modest in size (typically cap at $100,000)
  • Typically purchased to cover medical bills and funeral costs
  • Accumulates cash value
  • Underwriting is simple – usually a basic health questionnaire
  • Regularly purchased by seniors

The 4 Best Term Life Insurance Companies for Seniors

While there are many life insurance providers on the market, there are a few who really stand out when it comes to term life insurance for seniors. We compiled this list of the 4 Best Term Life Insurance Providers for Seniors:

Company J.D. Power Rating Customer Satisfaction
Protective Life 774 4.3 / 5
Banner Life N/A 4.2 / 5
Prudential 777 4.3 / 5
Transamerica 780 4.0 / 5

1. Protective Life

Protective Life has been on the market for over a hundred years. They have an amazing history of customer satisfaction, paying out claims, and securing affordable life insurance rates for seniors. Protective Life offers a large selection of life insurance policies and the also provides specific policies and riders such as Protect My Child and Survivorship Universal Life options.

2. Banner Life

Banner Life has a customer base of more than 70k clients and has been on the market for over 150 years. The insurance policies offered by Banner Life are considered to be affordable and convenient. Their term life insurance policies extend to provide coverage of up to $1,000,000.

3. Prudential

Prudential has made it a point to provide life insurance to all seniors, regardless of their medical conditions. There are special underwriting policies offered for people who have survived cancer, have been using tobacco, or are diabetic.

Prudential offers affordable rates and enjoys an A+ financial ranking by A.M. Best. Their term life insurance coverage can be up to $250,000, and the duration of the policy falls within 10-30 years. However, the policy must remain as is, i.e., you can’t convert into whole life insurance.

That’s a drawback for those who are looking to converting thir term life insurance policy. There is also a terminal illness rider available for individuals that have received an unexpected diagnosis.

4. Transamerica

Transamerica offers life insurance policies for seniors over 70 years of age. The company is known for providing insurance for the elderly and is considered to be one of the best life insurance companies for seniors. Seniors that are above 70 years can qualify for some of the best rates if their blood pressure levels are maintained.

Moreover, the cholesterol level requirement for the life insurance policy by Transamerica is relatively flexible. Therefore, if you are thinking of getting life insurance for elderly parents, Transamerica is the first provider that you should check out. There is also a terminal illness rider in place, and the coverage of their term life insurance policies for seniors extends to up to $900,000.

Term Life Insurance for Seniors – Bottom Line

There are many life insurance options out there on the market.  As you get older, life insurance becomes more important, and your life insurance options become slimmer.  For this reason, finding affordable and practical life insurance for seniors can often seem like a difficult task.

When searching for life insurance for seniors, there are many factors to consider to ensure that you provide for your family financially in the event of your death.  Depending on your financial and health situation, there are always options available to you, even in the event of a terminal illness.  So while the process of finding the best life insurance for seniors may seem overwhelming, it is not futile.

We work with dozens of the best life insurance providers on the market to help people find the best life insurance rates and coverage for their specific situation.  Our independent life insurance agents are ready and willing to help you find the best life insurance policy for your specific situation by understanding your financial goals, and current situation.

Give us a call today to work with an expert for free and find the best term life insurance for you!

Compare the Best Life Insurance Rates for Seniors

Quick and Easy Comparisons