Life Insurance Options at Age 65 or Older

There are a number of scenarios that would require those who are 65 or older to need life insurance.  Applying for life insurance at age 65 could be tricky if you have health issues or if you’re not sure what kind of product will be the best fit for your situation.  Our goal us to show you several options so that you can make an educated decision when it comes time to purchase coverage.   If you are 65 or older, you should know your options when it comes to life insurance.  Here is what you need to know about your life insurance options at age 65 older.

Why Those Who are 65 or Older Might Need Life Insurance

• Retiring Later than Anticipated – This scenario happens often. You purchase a term policy when your young thinking that it will last until retire but you end up working longer than anticipated. The problem is that you may still have to protect 5 or 10 years of income.  A simple term policy could provide the important protection needed for short term coverage.
• Covering Final Expenses – A funeral can cost close to $10,000 in most cases. Funeral costs could be accompanied by medical bills and other debts.  A small final expense policy for $10,000 to $25,000 of coverage could help your loved ones properly take care of your final expenses.
• Leaving a Bequest to Loved Ones or Charities – Life insurance is an excellent tool that can be used to leave a tax-free death benefit to loved ones or a favorite charity. Life insurance offers an opportunity to leave a separate bequest outside of assets such as your home or investment accounts.
• You Have Unanticipated Debts – If you’re still paying a mortgage or you’ve had to take on some additional long-term debt, it might make sense to purchase a life insurance policy that could be used to pay off the debt should you pass away unexpectedly.

Coverage Options for Ages 65 or Older

There are several life insurance options available for people ages 65 and over.  Here are some of the options you have if you are looking for life insurance at age 65 or older.

Term Life Insurance – Term life insurance offers the most economical option for coverage in most cases.  If you are in good health, you can get a term life insurance policy that lasts 10, 20 or even 25 years in some cases if you are 65.

A 65 year old male in excellent health can get a 15 year policy for $200,000 of coverage for $134.94 a month.  If he opted for 20 years of coverage, he would pay $195.32.

A 65 year old female in excellent health can get a 15 year policy for $200,000 of coverage for $119.09 a month.  If she opted for 20 years of coverage, she would pay $173.86.

Convert Current Term Coverage – Almost all term life insurance policies come with a conversion privilege.  It allows you to convert some or all of your term coverage to permanent coverage without proof of insurability.  In other words, the rate for your permanent coverage will be based on the health rating you received when you originally purchased your term policy, even if it was 20 years ago.  You rates will be based on your current age.

Whole Life or Universal Life –  Whole life and traditional universal life products are the most expensive options available.  These coverage options offer life insurance that lasts your entire lifetime and the opportunity to build cash value that you can access in the future.

No Lapse Guaranteed Universal Life Insurance (GUL) – GUL policies offer coverage that you can customize to last until age 90, 95, 100 or even up to age 121.  GUL policies are less expensive than traditional whole life and universal life policies because they are not designed to accumulate cash.  Since there is typically no cash accumulation, premiums required for GUL are smaller than polices that offer cash accumulation.  A 65 year old male in excellent health would pay roughly $275 per month for $150,000 of coverage that lasts until age 121.  A 65 year old female in excellent health would pay roughly $231.50 per month for $150,000 of coverage that lasts until age 121.

Guaranteed Issue Whole Life – For those who have medical conditions or do not want to take a medical exam, guaranteed issue whole life could be a solid option.  These policies are considered final expense policies.  Since there are no health questions and minimal underwriting, rates for this type of coverage are higher than that of traditionally underwritten coverage.  It is important to understand that guaranteed issue whole life typically offers smaller amounts of coverage, topping out at $25,000 in most cases.  There is also a waiting period for death benefits.  In most cases, if you die within 2 years of owning this type of policy your beneficiaries will only receive the premiums paid in plus interest.  In other words, you will have to live for at least 2 years before your beneficiaries will be eligible to receive full death benefits.

 Life Insurance Options at Age 65 or Older

These are some of the life insurance options that are available for people who are 65 or older.  The product that would be the best fit for you will really depend on your goal and your health situation.  Each product has its benefits and drawbacks so it is important to discuss your goals with an independent agency like ours.  We have access to the top insurers in the industry and will match you with the company that best fits your needs.  Email us or give us a call so that we can discuss your options.

About Us     

Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients.  We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage.  Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com