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Purchasing Affordable Life Insurance After 65 (Insider’s Guide)

Buying Life Insurance After 65As we near retirement age, our options for life insurance tend to become more limited. Most of us will lose our employer-provided life insurance, and options for longer term policies start to diminish.

Thankfully for most of us, the need for life insurance protection decreases as we get older and pay off our debts. However, if you still need coverage, it’s extremely important to choose the right policy from the best company available.

In this article we’ll explain your options for affordable whole and term life insurance after 65. We’ve also provided some sample life insurance quotes to help you estimate the cost of your policy.

Quick Article Guide:

  1. Why Purchase Life Insurance After Age 65
  2. Which Type of Coverage is Best for My Needs?
  3. Term Life Insurance – Pros/Cons and Sample Rates
  4. Whole Life Insurance – Pros/Cons and Sample Rates
  5. Universal Life Insurance – Pros/Cons and Sample Rates
  6. Still Have Questions? We Can Help!

Why Purchase Life Insurance After Age 65?

The truth is, some of the potential clients we speak with do not need life insurance. If you have no debt, and no one that relies on you for financial support, you might not need life insurance, especially if you have already set aside money for your final expenses.

For the rest of us with an outstanding mortgage balance, credit card debt, and spouses that rely on our income, life insurance is probably a necessity. Other common reasons that our clients purchase life insurance after the age of 65 include: leaving an inheritance, funding a trust, protecting or establishing an estate, and maximizing their pension.

Some types of coverage are better suited for specific needs. As an example, you wouldn’t want to purchase a policy that expires in ten years if you’re healthy and you want to leave money behind for an inheritance.

Why You Need Life Insurance After 65

Which Type of Coverage is Best for My Needs?

When purchasing any life insurance policy, the most important aspect to consider is your “need” for the policy. In other words, what is your reason for purchasing life insurance? Term life insurance provides a level period of protection for a set number of years, so its ideal for securing debt or providing a source of replacement income for a spouse.

If your goal is to leave an inheritance, protect an estate from estate taxes, or leave money behind to help with burial costs, you’ll want to purchase a permanent life insurance policy that will not outlive. Permanent life insurance is more expensive than term life insurance, but it is designed to provide a guaranteed payout whereas, term life insurance is not.

The most popular types of permanent life insurance are: whole life insurance, universal life insurance, and guaranteed issue life insurance. We’ve briefly explained term insurance and each type of permanent life insurance in the following sections.

Term Life Insurance – Pros/Cons and Sample Rates

Term Life Insurance Term life insurance offer a fixed amount of coverage with level premiums for a set number of years. For most companies, the minimum term is 10 years, and the minimal amount of coverage is $100,000. After the age of 65, almost every term life insurance policy requires a free in-home medical exam for approval.

The cost of your term life insurance policy is determined by many factors including your age, health, hobbies, and gender. Term life insurance tends provides the most coverage for the least amount of money, but it is not permanent coverage. Most people outlive their term which is why it is so inexpensive.

Pros of Term Life:

  • Very inexpensive compared to other types of coverage.
  • Flexibility – you choose the term and the coverage amount.
  • Most policies offer conversion options for permanent coverage.

Cons of Term Life:

  • Usually requires a medical exam for approval.
  • Rates and coverage are only guaranteed for 10, 15, 20, 25 or 30 years.
  • Takes six to twelve weeks for an approval.

Sample Term Life Insurance Rates – $100,000 of Coverage, 10-Year Term

Current AgeFemaleMale
65$33.45$52.63
66$37.58$58.22
67$41.71$64.07
68$47.08$71.47
69$52.54$79.03

Sample Term Life Insurance Rates – $100,000 of Coverage, 15-Year Term

Current AgeFemaleMale
65$44.46$68.89
66$49.97$77.23
67$55.56$86.00
68$62.78$97.95
69$70.09$110.34

Sample Term Life Insurance Rates – $100,000 of Coverage, 20-Year Term

Current AgeFemaleMale
65$69.90$98.91
66$91.60$117.48
67$104.92$135.88
68$121.36$158.50
69$137.77$182.23

*Monthly rates are accurate as of 03/01/2018 and are available to qualifying individuals in excellent health. Rates provided for illustrative purposes only.

Whole Life Insurance – Pros/Cons and Sample Rates

whole-life-insuranceWhole life insurance usually provides up to $50,000 of coverage without an in-home health exam. Instead, these companies electronically review your prescription history and medical history to rule out any serious health issues prior to approval.

All qualifying applicants pay the same rate class which is solely based on age and gender. As a result, these policies tend to be more expensive more relatively healthy applicants and non-smokers. In most cases, whole life insurance is only ideal for applicants who want to purchase a small amount of coverage (less than $25,000) for burial expenses.

Pros of Whole Life:

  • Relatively easy to buy.
  • No health exam required for approval.
  • Most companies offer fixed rates to age 100.

Cons of Whole Life:

  • Expensive for applicants in good health and non-smokers.
  • Limited coverage amounts.
  • Cash value is minimal, and the policy is difficult to understand.

Sample Whole Life Insurance Rates – $10,000 of Coverage to Age 100

Current AgeFemaleMale
65$41.01$55.76
66$43.44$59.35
67$45.86$62.93
68$48.29$66.53
69$50.81$70.11

Sample Whole Life Insurance Rates – $15,000 of Coverage to Age 100

Current AgeFemaleMale
65$59.91$82.04
66$63.56$87.42
67$67.19$92.80
68$70.84$98.19
69$74.61$103.57

Sample Whole Life Insurance Rates – $20,000 of Coverage to Age 100

Current AgeFemaleMale
65$78.82$108.31
66$83.68$115.49
67$88.52$122.66
68$93.38$129.85
69$98.42$137.02

Sample Whole Life Insurance Rates – $25,000 of Coverage to Age 100

Current AgeFemaleMale
65$97.72$134.59
66$103.80$143.56
67$109.85$152.52
68$115.92$161.51
69$122.22$170.48

*Monthly rates are accurate as of 03/01/2018 and are available to qualifying individuals in average or better health for their age group. Rates provided for illustrative purposes only.

Universal Life Insurance – Pros/Cons and Sample Rates

universal-life-insuranceTraditional universal life insurance usually provides life insurance with an investment component that is designed to build cash value over time. These policies have a bad reputation because historically, the investment value hasn’t keep up with the annual fees and investing fees charged by these policies. In addition, the cost of your policy is not guaranteed and rises as you get older.

Instead or recommending these risky policies, we recommend purchasing Guaranteed Universal Life Insurance which works just like term insurance. You can guarantee your rates and your coverage until the age of 85, 90, 95, 100, 105, 110, or even 121.

Guaranteed universal life insurance is ideal for funding a trust or protecting an estate because it provides affordable lifetime coverage with fixed rates. In addition, guaranteed universal life insurance is a fraction of the cost of whole life insurance and it offers larger amounts of coverage.

Pros of Guaranteed Universal Life:

  • Fixed rates until the age of 85, 90, 95, 100, 105, 110, or 121.
  • Inexpensive compared to other forms of permanent coverage.
  • No risky investing required.
  • Highly customizable.

Cons of Guaranteed Universal Life:

  • Requires a medical exam for approval.
  • Does not build a cash value.
  • Usually takes six to twelve weeks for approval.

Sample Guaranteed Universal Life Insurance Rates – $100,000 of Coverage to Age 90

Current AgeFemaleMale
65$120.50$150.41
66$127.30$158.28
67$133.80$166.40
68$140.00$173.80
69$146.40$181.60

Sample Guaranteed Universal Life Insurance Rates – $250,000 of Coverage to Age 90

Current AgeFemaleMale
65$292.25$368.45
66$304.95$382.8
67$325.75$399.06
68$341.00$417.52
69$357.25$438.26

Sample Guaranteed Universal Life Insurance Rates – $500,000 of Coverage to Age 90

Current AgeFemaleMale
65$568.20$736.89
66$592.15$765.62
67$643.85$798.10
68$676.50$835.04
69$708.50$876.51

*Monthly rates are accurate as of 03/01/2018 and are available to qualifying individuals in excellent health. Rates provided for illustrative purposes only.

Still Have Questions? We Can Help!

If you would like an accurate quote based on your age and health, or if you would like help determining which type of coverage is the best for your needs, please feel free to give us a call toll-free at 855-247-9555. All our agents offer at least five to ten years of experience and we represent more than 45 top-rated life insurance companies.

Most importantly, our agents do not have daily sales goals or shareholders to answer to. As an independently-owned life insurance agency, our goal is to provide you with the best customer service in the industry, and the lowest rates available. By shopping dozens of highly-rated providers, we’ll be able to match you with the best option available.

Our services are free, and there is not cost to apply for coverage. Give us a call today, or you can request a free online quote below to compare rates from more than 40 life insurance companies in less than a minute.

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