Life insurance nowadays is not an accessory but a basic need for any sensible US citizen. With the changing world dynamics and recurring disease inflictions, and wars on a global level. It is unavoidable to forgo life insurance. Just like your auto insurance, home insurance, and health insurance, life insurance cannot be taken lightly.
The basic aim of buying life insurance is to protect your beneficiaries from any future financial problems. The people who become policyholders can save a good amount of money over a few decades, by paying monthly premiums for a lifetime.
Any permanent life insurance policy is like a savings bank account on which a 3%-10% interest is applied. This is called an Accrued Cash Value Component of a life insurance policy. You can borrow money from it for any emergency once in your lifetime, in the form of a life insurance loan.
It is better to get insured as soon as possible since the age factor plays a role in lowering the amount of premiums. If a person gets injured at the age of 35 instead of 70 years, he is likely to pay half the amount of premiums that he has to pay at the age of 70 years.
- What is Life Insurance for Seniors?
- Which 10 US Insurance Companies Top the Charts for 2023 for Senior Life Insurance?
- Are there any Life Insurance policies for seniors without any medical exam?
- What is the Cheapest Life Insurance for Seniors by age?
- What are the tips for getting the best senior life insurance?
- What is the best life insurance for seniors with poor health?
- What if you no longer need your senior life insurance?
What is Life Insurance for Seniors?
Nevertheless, never too late to buy a financial safety net for your family and yourself. If someone thinks of it as a luxury, instead of understanding its value and has crossed the age of 65 years, they fall in the bracket of Senior US Citizens. Any person who buys Life insurance after the age of 65 or more is choosing a Senior Life Insurance for him. It is better to be late than never!
Also Read: Top Life Insurance Companies In USA
The senior citizen expenses include medical bills, old age care expenses, burial and funeral charges, pending car payments, and credit card loans. For any senior citizen, usually, 3 following types of life insurance are most popularly bought in the US:
For a senior citizen who does not have a very good budget, he can opt for a 10-15 years’ term life policy. The reputed firms that top the charts are elaborated below. Term life offers leveled premiums every month which are very pocket-friendly.
It does not have a cash value account and if you outlive your term, you will have to renew your term policy. It would be a bit expensive, yet advisable. For getting hospitalized for any unforeseen bad circumstances, term life rider “long-term care insurance” can keep you covered for your hospital stays at an older age.
This is a permanent life insurance policy that lasts your lifetime. It is the best option for senior citizens and everyone else. It has fixed premiums for life, the cash value is also fixed and gets built up steadily over your lifetime. For seniors, it can range from 65 -95 years, or more till they die. The death benefit payout is also fixed and a huge lump-sum cash for your spouse and kids, after your death.
This is one of the cheapest life insurance types and is compulsory for people of all ages. Senior citizens also, have to buy a separate small coverage of $10,000-$25,000 Burial Insurance policy to cover their funeral costs, medical bills, and credit card debts.
Which 10 US Insurance Companies Top the Charts for 2023 for the Senior Life Insurance?
1. Penn Mutual
Established in 1847, and located in Horsham, Pennsylvania; it is one of the top-notch life insurance providers for seniors at age 65 or above. It made it to the top spot due to the least number of complaints filed by the customers according to the data of the NAIC. It has been one of the most financially stable firms in the market for 2 centuries. Customer satisfaction and good experience are also ensured with Penn Mutual. It shows accurate policy illustrations with, the least exaggeration. It is cost-effective based on track record. The death benefit payout you get is more for lesser costs than any other senior life insurance firm.
Protective was established in 1907 and the headquarters are located in Birmingham, Alabama. Protective secured the second spot due to its Classic Choice Term Policy for Seniors. It is cheap, and lets you; renew your term till the age of 95 years. Most of your monthly premium money goes to your death benefit, very least goes to the company’s overhead costs and operating expenses. The same formula applies to its other permanent life policies, the premium goes to the cash value and death benefit, for the most part. Due to its exceptional performance, it has managed to keep the costs and fees low.
It goes way back to 1859 when it was founded, and it is located in New York, New York. It is the best for real and accurate policy illustrations. No false projections or promises. It offers many different senior life insurance policies for people of very old age. It caters for seniors with chronic illnesses too. It offers a very affordable term life policy for seniors. It has the best illustrations for permanent/ cash value policies. It is pocket-friendly too since a major portion of your premium goes to cash value and death benefit.
4. Pacific Life
Founded in 1868, it has its headquarters in Newport Beach, California. Its unique selling point USP is its PL Promise Term Life Insurance Policy for seniors aged 70 years or so. This PL Promise offers the lowest premiums in the market and it allows the policyholder to renew till the age of 95 years. The permanent policies of Pacific Life are also fabulous since the policy illustrations are 100% truthful, and the premium major portion goes to the cash value and death benefit. A very small amount is transferred to the company fees.
Founded in 1928, its head office is in Cedar Rapids, Iowa. It offers both term life and permanent policies. Its USP is the Trendsetter Super Term Life Insurance Policy. You can buy it at any age after 65, you can convert this term to a permanent life policy till the age of 75 years. You can renew your term life till the age of a whopping 100 years. The term life policies of Transamerica are very cheap and its cash value policies offer 100% truthful policy illustrations and very low costs.
6. Midland National
Founded in 1906, it is situated in Sioux Falls, South Dakota. Its USP for seniors is the Premier Term Life Policy. It offers a lot of chronic illness benefits, especially the rider of Accelerated Death Benefit. At older ages also, Midland National offers lower costs for buyers of permanent life insurance policies. Rider allows you to borrow cash from your death benefit for the treatment of terminal illnesses. Offers lowest costs in the market for older buyers of permanent life insurance policies. Again no exaggeration in the policy illustrations.
For cost-effectiveness, reliable policy illustrations, cheap term life policies, and many riders to accommodate the elderly, the following secured their spots:
7. John Hancock.
8. Securian Minnesota Life.
9. Mutual of Omaha.
Are there any Life Insurance policies for seniors without any medical exam?
Guaranteed Issue: anyone and everyone gets accepted for it, with no health queries, and no medical exams. Chronic illness patients buy this mostly. It can give you coverage for funerals. It has a graded death benefit which is a huge disadvantage because it has a 2 years waiting period after your death. But it is cheap compared to a whole life or universal policy and keeps Alzheimer’s and fatal patients insured.
Burial Insurance: It is the cheapest life insurance with$10,000-$25,000 coverage. Anyone who does not have Alzheimer’s, Renal failure, or Terminal heart condition, can buy this. You have to answer some health queries accurately and you get insured without any waiting period. Payout is between 24-48 hours after claim approval!
What is the Cheapest Life Insurance for Seniors by age?
- For Seniors at age 55: Transamerica offers the cheapest 10-year term for females at 55 at $556, annually.
- For seniors at age 60: Thrivent Financial offers 10-year term rates for females at 60 at $759, annually.
- For seniors at age 65: Thrivent Financial offers 10-year term rates for females at 65 at $1342, annually.
- For seniors at age 70: Lincoln National, Penn Mutual, Principal offers 70 years females $2393, annually for 10 year term life.
- For seniors at age 75: Illinois Mutual offers 10 years term for females at age 75, $4530, annually.
- For seniors at age 80: Foresters Financial offers a 10 years term for females at age 80, $11,592, annually.
What are the tips for getting the best senior life insurance?
- Avoid Graded Death Benefit Life Insurance
- Never rush while choosing a senior life insurance policy
- Research the policy illustrations with a reality check
- Always get professional insurance broker consultation
- Never make a decision based solely on the cost-effectiveness
What is the best life insurance for seniors with poor health?
For the elderly diagnosed with any terminal illness or serious disease, the best-suited option is a Guaranteed Acceptance Life Insurance Policy. It will allow you to forgo the medical exam or any health questionnaire. Anyone can apply for it if they’re older than 45 years. It can cover your funeral costs easily. It comes with a 2-year waiting period and if you cancel it, you will get a refund on your paid premiums plus the interest accumulated on it.
What if you no longer need your senior life insurance?
You can sell your life insurance policy; this process is called “Life Settlement”. Sell it with a broker consultation and get the maximum cash you can from it. After the buyer buys it from you, he will rename beneficiaries, and after your death, his beneficiaries will receive the death benefit payout.