Senior Life Insurance Policies at Every Stage
Life insurance is an important financial product that individuals may consider purchasing at any stage in life. Because life insurance pays out upon the insured's passing, there is a common misconception that seniors who do not already have a life insurance policy should not or cannot purchase life insurance. However, there are a number of life insurance products that work well for adults over 50; the most important consideration is what product will work best given your financial situation at your current stage of life.
What Is the Oldest Age You Can Get Life Insurance?
There is no widespread rule that all insurance agencies follow when it comes to age limits on life insurance. Senior citizens, or adults over 50 years of age, are generally still eligible for starting new life insurance policies or expanding their coverage. While an individual senior life insurance company may set age limits on certain financial products, a senior who is considering life insurance should determine for themselves whether a policy is a valid investment given their stage in life, financial standing, and intentions for the policy. Seniors should also keep in mind that the premium for a life insurance policy can increase with age.
What Types of Life Insurance Can a Senior Get?
The following list represents a number of life insurance policy options that may be applicable to seniors.
Term Life Insurance
Term Life Insurance is a policy that applies over a specified period of time outlined in the policy language. This option offers traditional life insurance benefits wherein monthly premiums remain at a given rate over the length of the policy term. This type of life insurance coverage is flexible, can be set for a period of time between 10 and 30 years, and is ideal for individuals with a strict budget. Those who want life insurance for a set amount of time, are in good health, and are under the age of 80 are in a good position to consider Term Life Insurance.
Quality of Life Insurance
Quality of Life Insurance, with Living Benefits, can offer seniors coverage for expenses they may incur while still living, in addition to the death benefit offered to named beneficiaries of the policy. This type of policy may be best suited to seniors who anticipate medical expenses that will arise due to a chronic, critical, or terminal health condition during their lifetime*. This option is beneficial in that it is flexible and customizable for seniors. At the same time, this type of policy can accumulate cash value and can be added as a rider to existing insurance options like Term Life and Universal Life insurance.
Guaranteed Issue Whole Life Insurance
Guaranteed Issue Whole Life Insurance** is often referred to as Senior Life Insurance or Life Insurance for the Elderly. This type of policy was originally designed to accommodate individuals who are looking for life insurance later in life, from ages 50 to 80 years of age, and can help alleviate financial strain on loved ones for expenses such as funeral costs.
One of the unique benefits of this option is that Guaranteed Issue Whole Life Insurance offers seniors guaranteed acceptance life insurance with no medical exam over 50, 60, and 70 years of age. With this type of insurance, those under 80-years-old do not answer health-related questions. This policy also offers Living Benefits at no extra cost; Living Benefits can help cover costs associated with chronic or terminal illnesses or quality of life expenses that the insured may face during their lifetime*.
Opting for this policy typically involves a smaller coverage amount (around $5,000 to $25,000) than a more robust life insurance policy; this policy can be used towards final expenses like burial costs, balances on credit cards, or the deceased's remaining medical bills.
Universal Life Insurance
Universal Life Insurance policies are permanent insurance policies that are beneficial over the long term. However, seniors who are later in life may opt for this type of policy in order to take advantage of its unique benefits.
Universal Life Insurance is flexible, allowing the insured to increase or decrease the death benefit*** to accommodate financial needs or restraints as they arise. This type of coverage also provides interest-earning cash value, meaning that the money contributed to your policy can grow over time. This policy option is also tax-deferred; you won't have to pay annual taxes on your policy, and your beneficiaries generally do not have to pay income tax when the policy is paid out.
Universal Life Insurance offers compelling benefits, but seniors should also note that this policy option may come with higher premiums than other life insurance products.
What Is the Best Senior Life Insurance?
The best life insurance for seniors depends on a number of factors that are all dependent upon the individual. Some factors that a senior should consider when purchasing a life insurance product are their financial position, the need for flexibility, the length of time needed to invest in a given policy to make it a valid investment, tax considerations, and what kinds of coverage will suit their individual needs.
Below is a list of general suggestions for the best insurance for seniors of various ages. Consider speaking with a life insurance agent to best determine the right policy for you.
Life insurance for seniors over 50:
- Term Life Insurance
- A permanent policy
- Quality of Life Insurance
Life insurance for seniors over 60:
- Term Life Insurance
- Universal Life Insurance
Life insurance for seniors over 70:
- Guaranteed Issue Whole Life Insurance
Browse Senior Life Insurance Policies with AIG Direct
The decision to purchase or expand a life insurance policy later in life is one that can require thorough consideration. To speak with a professional about your options or to get life insurance quotes for adults over 50,60, and 70, contact AIG Direct today.
*Important Consumer Disclosures Regarding Accelerated Benefit Riders.
**Important Information Regarding Graded Death Benefits: The GIWL policy referenced offers a limited death benefit in the first two years of the policy. Should death occur in the first two years, a death benefit will be equal to 110% of the premiums paid. In the event of suicide, the death benefit is limited to a refund of premiums only.
***Death Benefits are generally excludable from the beneficiary’s federal taxable income under most circumstances and under current federal income tax law.