Cheap Life Insurance for Seniors

Finding cheap life insurance for seniors is significantly more tricky that finding an affordable policy for a younger person. Here we’ll get into the factors that life insurance companies use to determine rates and where you can find a low-cost policy for you and your loved ones, even if they’re already in their golden years.

Affordable Life Insurance for Seniors: It’s Possible!

It’s a common (and unfair) assumption that life insurance companies stop covering people after a certain age. The sentiment is: “After you hit 60 you’re risk of death increases significantly. Why would any insurance company hand over a policy to someone that old?”. While that makes sense on the surface, you’ll soon see that there are plenty of insurers ready to serve you with cheap life insurance quotes no matter what your age (within reason of course!).Senior Life Insurance

It’s important to note, however, that the word “cheap” is relative. Cheap life insurance for someone that’s 29 is going to be very different than someone that’s 69.

To anyone that understands how life insurance rates work, this makes perfect sense. When calculating your premium, a life insurance company is computing the likelihood of your death over the life of the policy. If you’re young and healthy, you can expect to pay next to nothing nothing for your premium. However, the older you get the more expensive life insurance becomes. That’s just part of the harsh reality of life insurance.

But even you’re 50 or even 60 years of age or older, you can usually find affordable life insurance for seniors if you look hard enough.

A Matter of Health

Based on current scientific research, insurance companies now pay more attention to health status than ever before. Age will always be on their radar screen, but you can significantly cut down on your monthly payments by showing them you’re the picture of health. Sadly, perfect health is somewhat rare for older folks as the risk of chronic disease — such as arthritis and type 2 diabetes — skyrockets as one ages. That’s not to say that a health problem makes you ineligible for cheap life insurance. But a long-standing health problem will make your premiums significantly higher than if you had a perfect bill of health.

Fortunately, you’re never too old to improve your health. Hitting the gym and losing a few pounds can cut upwards of 50% off of the price of your plan. And quitting tobacco is one of the best ways to save money on life insurance (and in general!). Insurers also take a close look at your body mass index (often shortened as BMI) when calculating your rate. Aim to get your BMI below 25 (you can use this online calculator to check your BMI with ease).

Because most life insurance rates are locked in for the life of the policy, you definitely want to start off in the best health possible. In other words, if you think your current state of health will cause your premiums to be too high for your budget, spend a few months eating lots of vegetables and hitting the gym 5 times a week. Once you feel that you’ve improved enough that it changes your blood work number, start your search for a policy. This technique can save you thousands, and is the only way some seniors can afford life insurance.

Term vs. Whole Life Insurance for Seniors

For anyone that wants to pay the lowest premiums possible, term life insurance is their best bet. This is especially so for seniors. Because whole life insurance is meant to be an investment (typically for retirement), most people keep their money in the plan for 20 or 30 years. If you’re a senior, this type of long-term investment simply makes no sense.

Coverage Differences

One of the great things about cheap life insurance for seniors is that you probably don’t need the same coverage that you would if you were still raising a family. Because you’re older, you may only be taking our a policy to cover burial expenses so that your children and spouse don’t have to foot the bill. Most seniors have children that are financially independent and don’t need the “bail out” that a life insurance policy brings to the table. In short, this means lower costs for you.

Like all life insurance, the best way to find a low-cost plan that gives you the coverage you need with the premium you can afford is to use an authorized agent. They’ll contact several different insurers, such as Colonial Penn, and find a policy that fits your unique needs.

With the internet, you can also compare life insurance rates yourself with the click of a mouse. This is another smart way to save money on insurance as many agents take a commission for each referral, which can mean higher costs for you. Thanks to rapid increases in life expectancy, cheap life insurance for seniors is a reality!


Article on Senior Life Insurance by KU

Overview of Life Insurance for Seniors

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