Am I Too Old for Life Insurance?

What you need to know about buying life insurance in your golden years.

There’s a lot of talk about buying life insurance when you’re young and building a family, taking out a mortgage, and dealing with other financial obligations. But there are a few situations when you might be thinking of life insurance coverage in your 60s, 70s and beyond. For example, you may have had a policy that expired, or you may be taking a closer look at retirement planning and wondering if life insurance can help with that.

If you’re a senior in the market for life insurance, you do have options. 

At Steven McMahon Insurance, we partner with major life insurance companies to help you navigate your choices and find the best policy for your needs at the best price.

Firstly, can I get life insurance as a senior?

The short answer is: yes. The options available to you will depend on your age, health and the insurer you choose, as some have cut-offs for certain types of policies. Generally, if you’re under 65, you’ll have access to the broadest range of policies. After that, you can still buy coverage, but there may be limitations, especially if you have pre-existing conditions.

These are the main types of life insurance for seniors.

Term life insurance

Term life insurance covers you for a specific number of years, like 10 or 15 years. The length of the “term” you can buy comes down to your age — for example, some insurers will offer a 20-year policy to those in their 60s, but a 10-year policy to those aged 75 or up.

The premiums stay the same, and your beneficiaries will get a payout if you pass away while your policy is active. Keep in mind you’ll likely need to take a medical exam to get coverage, which could raise your rates if you have a serious health condition like heart disease or diabetes.

Permanent life insurance

If you want to treat your life insurance policy as a cash asset and can afford higher premiums, you might consider permanent life insurance. The options include whole life, universal life, or variable life, as well as hybrid policies.

All permanent policies provide lifelong coverage. When you pay your premium, the insurer puts a portion of that money into a cash value account that grows at either a fixed or variable interest rate. When you have built up enough cash value, you can start to take out loans against your policy or withdraw the money to fund your retirement, vacations or home renovations, or leave an inheritance to your family.

Generally, you don’t need to take a medical exam to get coverage, but you might not have access to permanent life insurance after about age 80.

Final expense insurance

Also known as burial insurance, final expense policies are open to people aged 50 and over. These policies have one purpose: to help your loved ones cover your end-of-life expenses, like your funeral, burial and medical bills. 

Final expense policies can give you peace of mind that your death won’t be as much of a financial burden on your family, but they are fairly expensive. Also, most insurance companies only offer small amounts of coverage, like $2,000 to $20,000.

Guaranteed issue life insurance

If you have major health conditions and only need a little bit of life insurance coverage, a guaranteed issue policy could be a good choice. These policies issue coverage without the need for a medical exam or health questionnaire, meaning anyone is eligible. It can be helpful for those who are in poor health whose rates would skyrocket if they had to hand over their medical records to insurers.

Like final expense insurance, guaranteed policies are limited to small amounts, usually up to $25,000. But they’re one way to help your family cover end-of-life costs, outstanding debts and lifestyle expenses while they grieve.

How much does life insurance for seniors cost?

The rates vary based on your age, health, gender, lifestyle, hobbies, smoking status and more. Generally, the older you are, the more you can expect to pay for coverage.

Why? The reason is simple — life insurance companies are businesses, and they know there’s a higher chance they’ll need to pay out your policy if you buy one as a senior.

Our team partners with a variety of trusted life insurance companies, so we can find the lowest possible rates for you.

Compare your options with the help of an independent life insurance agent. Contact us today and get the coverage you need, when you need it.