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10 Best Life Insurance Companies for Seniors in 2019

Life insurance rates go up with every passing year in one’s life, and seniors who don’t have any yet can put an end to that by finding good value plans to choose from – better late than never! We have assembled a quality list of the ten best life insurance companies for seniors in 2019, featuring providers that have a credit rating between “Very Strong” to “Excellent.” It’s important that your life insurance company is operational when you pass away so your beneficiaries are taken care of. 

 

Our list is made up by looking at factors including life insurance rates for seniors, application age limits, quality of customer service offered, and other important elements. We first take a look at the top 10 companies and summarize them for seniors to look over before going into a more detailed read for each provider. We also share a terminology guide for terms including life insurance, whole-life insurance, and permanent insurance to wrap up the guide.

  • AIG – American International Group (AIG) was founded in the year 1917 and operates out of their headquarters in New York City. They provide coverage for most of the Fortune Global 500 companies, and in 2008 the U.S. government were quoted as saying that AIG was “too big to fail.” In 2019, Standard and Poor’s gave AIG an A+ credit rating. AIG offers term life insurance for 10 to 35 years, whole-life insurance with guaranteed acceptance up to age 85, permanent life insurance with fixed or variable premiums, and quality of life insurance. Their maximum death benefit or payout to beneficiaries is $2 million.

  • Haven Life – Haven Life offers term life insurance for 10 to 30 years with the option to renew. Coverage from $100K to $3 million is available through a fixed premiums structure. Policies are all backed by MassMutual – a company rated A++ by A.M. Best. Haven has an easy online application process with instant feedback given. Sometimes Haven will require a follow-up medical exam to be done before approving a policy.

  • Bestow – Bestow is a term life insurance company with 2-year, 10-year, and 20-year policies, with the maximum coverage set at $1 million. Bestow’s 2-year option with a maximum value of $500K can serve as small employer insurance, or as a trial for their longer-term life insurance. Medical exams aren’t required for Bestow life insurance, but policies aren’t automatically eligible for renewal, and as a result, some people are denied coverage. Bestow’s life insurance is backed by an A+ insurance carrier as rated by A.M. Best.

  • MassMutual – MassMutual is a comprehensive life insurance provider, and have been in business since 1851 – an incredible achievement. They maintain an A++ credit rating and are a mutual company – policyholders share ownership and can receive dividends. MassMutual sells term life and whole life insurance for seniors, and you can choose from universal life and variable universal life policies. Some products have online applications but a medical exam is required to firm up insurance rates.

  • Prudential – Prudential is an international insurance company that came into existence back in 1875. They sell term life insurance with renewable 10-year, 20-year, and 30-year plans, but unfortunately, coverage ends when a policyholder reaches age 95. Prudential offers some of the market’s best insurance rates for seniors who would be classified as a higher risk of suffering negative occurrences in life – things including use of tobacco, being diabetic, or have other potential health risks. The company is also recognized as being the first provider to offer long-term life insurance for people living with HIV. This year they received an A- credit rating from A.M. Best.

  • New York Life – New York Life’s corporate story dates back to the 1840s – making it America’s oldest mutual insurance company. They offer short-term and long-term, whole-life, universal, and variable universal life insurance. New York Life term insurance policyholders can also convert to permanent insurance. Their Spouse’s Paid Up option lets your spouse obtain life insurance without an exam if you pass away first. New York Life has an A++ rating from Moody’s and also from other ratings organizations.

  • American General – American General has been in business for over a century, and offer term life insurance through AIG Direct. AIG Direct’s options include 10-year, 20-year, and 30-year terms with guaranteed death benefits. Acceptance to enroll is guaranteed, and no medical exam is required. The customer service they offer has received poor reviews from customers – a negative aspect of the company.

  • Transamerica – TransAmerica is a top life insurance company for seniors aged 70 and up. They offer term life, whole life, universal life, index universal life, and final expense insurance. Medical exams are required before a policy can be approved, but TransAmerica is known to offer affordable rates even with mediocre cholesterol ratios and other substandard health scores. Transamerica was rated A+ for financial stability in 2019.

  • Colonial Penn – A co-founder of AARP established Colonial Penn in the year, 1968. Colonial Penn sells renewable term life insurance, whole-life, and living insurance with a 50% payout in case of serious illness. Seniors up to age 85 have guaranteed life insurance acceptance in most U.S. states and Puerto Rico is also included as well, but coverage can end at age 90. Colonial Penn credit ratings range from “Strong” to “Excellent” for 2019.

  • MetLife – MetLife is an international leader in life insurance and other financial products. They feature term life and whole-life policies without needing to do medical exams. Many employers offer MetLife life insurance plans with discounted group rates, and some products can be purchased independently of the workplace. Recently Fitch Ratings and Standard and Poor’s rated MetLife AA- or “Very Strong.”

How We Chose Our Top List

Life insurance options are in abundance – making it challenging to narrow down providers to build a high-quality list. Our experts put in the research so you don’t have to spend countless hours of research time to find a few ideal life insurance providers and plans. Some criteria we examined were benefits and pricing, age limit restrictions, customer reviews, customer service, and other key elements. If you are looking to purchase a life insurance plan in the days or weeks ahead either for yourself or a family member, then look no further than our top 10 list below. 

14 Providers Examined

2 Experts Consulted

10 Providers Selected

 

12 Hours of Research Conducted

1. AIG

Ease of Use

Excellent

Service & Response

Excellent

Features & Tech

Excellent

Pricing

Excellent

Overview

AIG life insurance for seniors includes these product offerings:

  • Term life

  • Whole life

  • Universal life

  • Variable universal life

  • Quality of life

Term life insurance from AIG is available with 18 term lengths:

  • 10 years

  • Any number of years from 15 to 30

  • 35 years

Any term life insurance policy from AIG can be converted to permanent coverage anytime during the term. Maximum coverage available is $2 million.

The basic term plan is named Select-a-Term life insurance. A more extensive plan named Qol Flex Term includes the option for early payout in case of critical illness.

As for whole life insurance – AIG guarantees $5,000 to $25,000 plans for applicants between the ages of 50 to 85. For permanent coverage, they have universal, variable universal, and index universal plans.

A negative aspect of AIG stems from a high number of customer complaints. In 2017, AIG proclaimed that the company would improve customer service, and update its software to improve satisfaction but both are still a work in progress. 

Pros
  • Offer a good variety of life insurance products 

  • Term life can be converted to whole life insurance 

  • Guaranteed whole life policy approval up to age 85

  • Have an accelerated death benefit

  • Hold an A+ credit rating

Cons
  • Their customer service was bad but is slowly getting better 

Pricing

AIG’s website has some sample life insurance rates that can be used as general guidelines, but only supports 40-something-year-old individuals. A custom quote can be received via their website, or by calling AIG and speaking with a company representative. 

The Bottom Line

Seniors, no matter where they may live on this beautiful planet of ours can gain access to AIG’s wide selection of life insurance products. For seniors up to the age of 85, they guarantee one version of whole life coverage without an exam having to be done, but the maximum is only $25,000. $2 million limits are set on AIG life insurance products that ask health-related questions. As previously mentioned, AIG’s customer service has come a long way over the past couple of years, but there’s still lots of room for improvement. 

 

2. Haven Life

Ease of Use

Excellent

Service & Response

Excellent

Features & Tech

Excellent

Pricing

Excellent

Overview

Haven Life has a keen focus on the life insurance industry – specifically term life products. The majority of online applicants will enjoy the fact that there’s no medical exam needed to purchase a policy, an approval decision comes very fast, and coverage can go into effect immediately. 

 

Term lengths for Haven Life’s insurance policies are:

  • 10 years

  • 15 years

  • 20 years

  • 30 years

All Haven Life insurance plans have fixed premiums, and conveniently have the option to renew. There is an application cut off age of 64, and it’s recommended to apply for a life insurance plan before turning 60 years of age.

  • Up to $3 million in term life insurance can be received for those aged 18 to 59

  • A maximum limit of $1 million for those aged 60 to 64 is available

Pros
  • Up to $3 million of coverage which is higher than the average provide allows for

  • There’s a guaranteed option for renewal

  • Have an accelerated death benefit

  • A decision comes right away after an application has been submitted online, and coverage takes effect immediately

  • Medical exams are not always required

  • The company’s customer service is excellent 

  • Possess an A++ credit rating

Cons
  • Whole life insurance plans aren’t offered by Haven 

  • Applications must be submitted for review before age 64 is reached

Pricing

Seniors enjoy dealing with this life insurance company, and a quote can be easily obtained online without needing to submit personal information such as a name and email address. 

In terms of pricing, it varies widely depending on an individual’s tobacco use, age, gender, and state of residence. $1 million in coverage may cost a senior less than $200 per month or more than $2,000 monthly depending on their profile. HavenLife.com is where to go for a quick quote. 

The Bottom Line

Haven Life is a quality term life insurance provider that offers a renewability rider, and applications can be submitted online via the company’s website. Coverage is available for purchase up to the age of 64, but it’s highly advised to submit an application before the age of 60 for better benefits. 

 

3. Bestow

Ease of Use

Excellent

Service & Response

Excellent

Features & Tech

Excellent

Pricing

Excellent

Overview

Bestow is an online seller of term life insurance with no medical testing required, but they will turn down applicants based on certain criteria. Some of the factors they deem important for policy consideration include an estimate of your BMI – height versus weight, tobacco use, physical and mental health treatments, criminal record, driving record, and if any deep ocean diving plans are in the works.  

Senior life insurance options from Bestow are 2 years and up to $500,000, or 10 years and up to $1 million. 20-year insurance policies can also be purchased by individuals with two cutoffs of those of aged 43 and 45. It should be noted that life insurance policies from Bestow can’t be renewed, which for some individuals, might be a deal-breaker. 

Pros
  • Applications are easily submitted online 

  • No medical exam is necessary 

  • There’s a $1 million maximum in coverage

  • Maintain an A+ credit rating

Cons
  • An application must be filed by age 64

  • Non-renewable term life insurance policies

  • No whole life insurance policies are available from the company 

  • The company doesn’t have a long operational history like many other providers have 

Pricing

Term life insurance for seniors from Bestow can be relatively affordable, but the life insurance products which require no exam is priced much higher. Pricing details aren’t available on their website, so an application needs to be submitted online and takes roughly 10 minutes to fully complete.  

The Bottom Line

Buying term life insurance from Bestow can be easily done on their website, and they proudly offer exam-free products. The maximum term available for seniors is 10 years, and policies can be worth as much as $1 million. Bestow doesn’t provide the abilities to renew term life insurance policies, or converting to permanent coverage is also unavailable from the company.  

 

4. MassMutual

Ease of Use

Excellent

Service & Response

Excellent

Features & Tech

Excellent

Pricing

Excellent

 

Keeping its long term care premium rates down for longer than most of its competitors have long been a focus for MassMutual. However, in 2018, the company got the green light to raise many of its premiums by a whopping 77%, and some customers were blindsided by the dramatic increase and left very unhappy as a result. As you might imagine, MassMutual had a lot of bad PR to deal with, along with customer backlash. The company has stated that they learned from their big mistake, and future premium increases should be much less polarizing as a result. 

MassMutual provides a combined long-term care and life insurance policy and is ideal for those who have significant wealth that aims to be protected for heirs if long-term care doesn’t end up being needed. 

The company offers the SignatureCare 500 policy, and in some jurisdictions, it has been transitioned to the SignatureCare 600 policy. The 600 product has a limited amount of details pertaining to it, so we focus on the 500 product here – where more public information is available. 

The standalone 500 product is available in the form of a base version, and there’s also a more comprehensive version for those seeking out more coverage. The base policy only covers facility services for assisted living, for example, while the comprehensive policy includes some home care as well. 

Pros
  • Standard benefits through the comprehensive policy includes a premium waiver, community-based services, caregiver training, ambulance services, emergency response, respite care, alternative plan of care, and some coverage while outside of the United States

  • Optional riders for inflation protection, shared care, waiver of premium for a covered partner, paid-up survivor benefit, home and community-based services elimination of period, home and community-based services monthly benefit, and enhanced elimination period

  • Once the initial elimination period is satisfied then no future period is required – if inside the United States

  • Benefit periods of two, three, four, five, or six years are available 

  • There’s a 30% partner discount if both people in a couple get insured, a 15% discount if one person in a married couple gets insured, or a 5% discount on long term care premiums each year if you have life insurance, disability insurance, or annuity contracts from MassMutual

Cons
  • Elimination periods of 30, 60, 90, or 180 days – although there’s a rider to waive the period for home and community-based services

  • No reimbursement for care that’s provided by family and friends

  • Pricing information on the company’s website is very limited 

  • You must speak with a MassMutual advisor to get information that’s relevant to your particular situation

Pricing

Rates are affected by an individual’s gender – something typical of a life insurance provider. MassMutual prefers collecting premiums on an annual or semiannual basis, and charges apply for monthly or quarterly payment schedules – this is typical with many insurers. Dividends can be earned from MassMutual to reduce policy premiums and also expands the pool of benefits. Two things to be aware of though regarding premiums – they are never guaranteed, and a policy has to be held for at least 11 years to receive them. Daily benefit amounts for care generally range from $50 to $400 per day, and increase in $10 increments. 

The Bottom Line

MassMutual’s six-year period offers policyholders to be covered as long as possible, but alternatively, the company has good options available including the restoration of benefits rider. If you haven’t depleted your total benefit amount, then benefits can be restored more than once. The enhanced elimination period rider can save policyholders money in the long-term – for example, using services just one day within a seven-day period gets the full week counted toward the elimination period. This rider can be especially useful if paying for services during the elimination period concerns you.

 

5. Prudential

Ease of Use

Excellent

Service & Response

Excellent

Features & Tech

Excellent

Pricing

Excellent

Overview

Prudential offers a couple of different types of life insurance products – term and permanent are their focus. For seniors who are cost-conscious will find Prudential to be an intriguing option, and some policies don’t require medical examinations to be done. Coverage wraps up when a senior turns 95, which could be a big drawback for some individuals. 

Up to $500,000 of coverage can be purchased through their term life insurance offerings for 10, 20, or 30-years, and can be renewed until the maximum age limit is reached. There are a few riders which are available from the company and are worth looking into, one such example is a rider that can return the premium if you outlive the plan’s lifespan. 

The company’s permanent life insurance products include universal life, indexed universal life, variable universal life, and survivorship universal and variable universal life. The variable policies have flexibility in them, in that the underlying investments can be chosen by the policyholder. 

Pros
  • Two people can be insured under just one term life plan

  • There’s a rider for a payout if you outlive the policy

  • The cash value can accumulate 

  • Their credit rating is nice and strong

Cons
  • The most notable negative aspect is that coverage ends for seniors who reach 95 years of age

Pricing

Quotes can be requested online via the Prudential website. 

The Bottom Line

Prudential has built up a solid brand as a life insurance insurer and has a few different products that appeal to seniors and their needs. An instant quote is available on their website, and once again, coverage concludes when an individual celebrates their 95th birthday. 

6. New York Life

Ease of Use

Excellent

Service & Response

Excellent

Features & Tech

Excellent

Pricing

Excellent

 

Just recently, in 2018, New York Life launched their NYL My Care which is aimed at simplifying long-term care options alongside its 2016 NYL Secure Care product. A combination life insurance product is also available from the company. 

A nice aspect of NYL My Care is that their messaging is easy to understand for the most part, and if you’re familiar with health insurance, then this product information will resonate with you. Let’s look at an example – a one-time deductible is attached to NYL My Care, and it’s easy to comprehend drawing from a pool of money versus time periods of two or five years. Your monthly reimbursement rate is 80% as a maximum benefit, so essentially you’re paying 20% of costs like what happens with coinsurance. While NYL My Care’s product is about short term gain, NYL Secure Care has been developed to be a long-term care insurance product. 

Much like MassMutual as previously documented above, New York Life is also a mutual insurer and dividends can lead to eventual premium savings by year 11 if a policyholder has NYL Secure Care. After a time period of 20 to 30 years, the dividend value can actually cover the out of pocket premium costs. 

Pros
  • There’s a 25% first-year discount for couples, and a 10% discount for one person if a married couple gets insurance

  • Four package options for NYL My Care simplifies the process – bronze, silver, gold, and platinum, and are configurable to address needs 

  • Policy riders offer inflation protection, waiver of premium, legacy benefit, shared care, and other tangible benefits

  • There are reimbursement options for family and friends – providing in-home care

Cons
  • 20% “coinsurance” under NYL My Care means taking a risk on expenses, and perhaps doing more financial planning than you would like to do 

Pricing

Just last year in 2018, New York Life gave a pricing example for a 55-year-old male and fleshed it out for each of the four NYL My Care programs. The Bronze options had a monthly premium of $24.93, with Silver it was $49.86, Gold came in at $84.65, and Platinum was billed at $119.45 per month. Take note that these costs included the 25% partner’s discount, and didn’t include inflation protection. 

The Bottom Line

NYL My Care from New York Life is well outlined so that potential customers who are after long-term care insurance options can understand the coverage without needing a ton of clarification. 

Through NYL My Care, New York Life gives consumers long-term care insurance options presented in a way that may make more sense to them. Regarding the 20% coinsurance that users have to pay while receiving care, there are two ways to view it – firstly, you’re already paying for out-of-pocket expenses, so there’s “only” another few hundred dollars more to pay per month. Secondly, it can be viewed as frustrating to having already paid monthly premiums for years, and now you’re paying out-of-pocket expenses plus the coinsurance. To not get caught off guard and to have financial peace of mind – NYL Secure Care makes a lot of sense. 

7. American General

Ease of Use

Excellent

Service & Response

Excellent

Features & Tech

Excellent

Pricing

Excellent

Overview

Backed by AIG, American General offers term life insurance coverage. The company has empathy for individuals who have health issues including diabetes or sleep apnea by providing rates that can be lower than the average term life insurance provider. Seniors can choose from 10, 20, and 30-year term life policies. Rates stay stable for all American General life insurance plans, and term life policies range in value from $100,000 to $2 million. 

Pros
  • Coverage up to $2 million is available

  • For individuals who have health issues and problems – the company offers good rates  

Cons
  • Only term life insurance coverage is offered 

  • Their customer service experience is considered to be average at best 

Pricing

Quotes can be quickly obtained on the American General website by providing minimal health-related responses including BMI – height and weight information, and any nicotine use. The quotes aren’t potentially firmed up though until both a lifestyle check and a medical exam are done – when a rate is then officially offered and locked in. 

Some significant factors that raise insurance pricing from American General include risky activities such as skydiving, for example, driving history is important, cholesterol ratio, and if tobacco is used regularly then that’s a big knock as well. 

The Bottom Line

American General sells term life insurance thanks to the backing of AIG. Quotes are readily available on their website, but they reserve the right to request a lifestyle check and medical testing. The insurance coverage available can get up to $2 million, but the downside is that their customer service could use improvement. 

 

8. Transamerica

Ease of Use

Excellent

Service & Response

Excellent

Features & Tech

Excellent

Pricing

Excellent

 

Transamerica offers a long-term care policy to customers named TransCare III – it comes with lots of standard benefits and has optional riders as well. Some analysts may compare this policy to the offering from Mutual of Omaha, which is fair. Many life insurance companies provide the means to get an online quote quite easily, but Transamerica’s process is a bit more complex. 

Pros 
  • Standard benefits include cash, remain at home, home care, respite care, adult daycare, long term care facility, waiver of premium – in cases such as long-term care facility after the elimination period, three-year rate guarantee, return of premium upon death before the age of 67, accident, alternate plan of care with coordinator approval, and hospice care

  • Optional riders include various benefit increase options to keep pace with inflation, shared care, monthly benefit – for charges exceeding maximum daily benefits, elimination period credit, joint waiver of premium, the return of premium upon death, nonforfeiture, and a one-time full restoration of benefits

  • Elimination periods can be 0, 30, 60, 90, 180, or 365 days

  • A couples discount is offered up to 30%; a 15% discount is provided if married but a partner isn’t applying, and there’s a 10% preferred health discount as well 

  • A pool of money ranges from $18,250 to $1,095,000, and the maximum daily benefit ranges from $50 to $500 – paying more in premiums results in a higher pool of money and a higher maximum daily benefit

Cons
  • Rates for residents in California are especially high

  • Shared care option may not save married couples as much money as they would save at another insurer

Pricing

With no online pricing estimate available from Transamerica, you are instead instructed to contact a company agent for pricing information. Premium rates are influenced by gender as women, on average, live longer than men and so their long-term care expenses are typically higher. 

Despite the lack of pricing information from Transamerica’s website – the American Association for Long-Term Care Insurance does provide three TransCare III pricing estimates. For a married couple with ages of 61 and 60 who choose a benefit amount of $162,000, each would pay a yearly premium of $2,242. For contrast, a 57-year-old single male pays $989 annually, and a 57-year-old single female pays $1,507 on an annual basis. Disclosure – all three estimates mentioned here offer no inflation protection.

The Bottom Line

Policies from Transamerica can be purchased relatively inexpensively, and various options exist for configuring reasons. Don’t go to the company’s website for a quote, because you can’t get one, but rather, the above estimates will give you a very rough idea of what you can expect to pay annually. 

 

9. Colonial Penn

Ease of Use

Excellent

Service & Response

Excellent

Features & Tech

Excellent

Pricing

Excellent

Overview

Colonial Penn focuses on life insurance coverage for seniors, and two of their main coverage products are term life insurance and whole life insurance. 

Term life insurance from Colonial Penn is available for applicants who are up to 75 years of age – no medical exam is required, but maximum coverage is limited to just $50,000. Whole life insurance products from Colonial Penn have flat premiums – so rates won’t increase which is comforting to seniors. There’s a guaranteed acceptance from the company with a $20,000 limit for applicants who are up to 85 years of age, and a $50,000 maximum is offered for individuals up to age 75. Living insurance from Colonial Penn provides a 50% payout in case of serious illness.

Rates from Colonial Penn go up when you reach a higher age tier – for example, 51 to 55 years, or 56 to 60 years). Expiring policies are renewable, but not for individuals who are older than age 89.

Pros
  • Guaranteed approval is in effect for term and whole life insurance

  • No medical exams are required 

Cons
  • Insurance coverage expires once age 90 is reached 

  • $50,000 in coverage is the maximum allowed 

Pricing

Insurance is issued according to a unit scale – you can buy one to eight units for different levels of coverage. Quick quotes can be picked up via their website.  

The Bottom Line

No medical tests are requested before getting approval for a policy, and Colonial Penn has set up their website to make purchasing life insurance simple. Some words of advice – adults who are healthy and don’t smoke can likely find more extensive coverage options elsewhere at a comparable cost. 

 

10. MetLife

Ease of Use

Excellent

Service & Response

Excellent

Features & Tech

Excellent

Pricing

Excellent

 

MetLife spun out Brighthouse Financial to offer long-term care insurance, but policyholders who dealt with MetLife initially and bought a policy from them can still communicate with MetLife directly. 

Brighthouse Financial itself doesn’t have a standalone long-term care insurance option – they provide a hybrid policy of sorts named Brighthouse SmartCare. The policy combines an indexed universal life (IUI) policy with protection to take care of long-term care costs.

Pros
  • Payment flexibility – you can pay your premium just once or over a certain period, as long as five years

  • Monthly benefit payments may be greater than your actual care expenses, meaning more money left over 

  • Options include indexed long-term care, fixed-growth, and level

  • Care payout period ranges from four to six years

  • Available for individuals from 40 to 75 years old, and policies can have face values up to $1 million

Cons
  • A 90-day elimination period

Pricing

Simply click “Get Started” on this page to go through various pricing scenarios. For example, specifying a 60-year-old non-smoking female who pays $100,000 for the policy in a single payment, choosing indexed growth and a four-year long-term care benefit period. Let’s flesh that out – at age 80 she’d receive a long-term care benefit of $10,074 a month, translating to $120,889 a year. This policy indicates that she gets no long-term care benefit at age 85 though. If you click on “Download Basic Illustration,” you will, in fact, see that there are payouts at age 85 and beyond.

If you choose indexed growth, your policy is linked to major stock market indices, and you can lock in your benefit amount at any policy anniversary. Choosing indexed growth may feel risky, but based on past market performance – it’s a calculated risk to take. 

The Bottom Line

 

You need to have thousands of dollars to invest in this type of long-term care insurance, but if you do have that kind of money, then it’s a great financial vehicle for wealth preservation. Do review life insurance and long-term care options from several different companies, and compare prices and benefits on an apples to apples type of comparison chart.

Some Terms To Know Regarding Life Insurance

When doing your research on life insurance coverage companies and products you need to know the terminology. Below are a few terms that you will see regularly, and it’s important that you understand what each one means. Keep this web page open on your browser if you want to as a reference. 

Death Benefit

The death benefit refers to the amount of money that beneficiaries will receive when the policyholder passes away. You may also see it termed as the “face value” within an insurance policy.

Term Life Insurance

Coverage provided for a set period of time is called term life insurance, and it’s common to see term lengths for one year, 10 years, 20 years, or even 30 years. Policies of this type can have flat rates, while others see premiums which increase or decrease on an annual basis. 

As long as the premiums are paid, then a term life insurance policy remains actively in effect for as long as the term is set to. If a death occurs during the term, then payouts should be provided to beneficiaries, but be aware that some policies use fine print to exclude any payments if a death happens soon after the policy is issued. The death benefit amount can also vary according to certain time periods, so it’s important to understand how it changes over time. 

If a term life policy expires before an individual passes away, then most of the time no payments will be issued to beneficiaries. Renewable term life policies are a good thing to have so that when one ends it can immediately go back into effect again, but usually, premiums will increase, and the ability to renew can be taken away at a certain age.  

Seniors like to know that many term life insurance providers will allow converting to a whole life policy some time before the policy expires. A term life policy that can be renewed and/or convertible can bring some peace of mind to policyholders, as forecasting family expenses longer-term is a challenging endeavor. 

Everyone is in a different boat and stage in life, but as a general rule of thumb, term life insurance is ideal for adults who haven’t reached a senior age yet as diminishing results are possible as an individual ages. 

Whole Life and Permanent Insurance

As long as premiums are paid, then whole life insurance offers coverage for life. There are whole life plans that can be paid off earlier – something that some individuals prefer, instead of having to pay premiums when older and can’t be bothered to deal with them then. Beneficiaries typically receive a set payment amount, and this is beneficial in comparison to term life plans as most of them offer no compensation if the individual outlives the policy. 

One type of permanent insurance are standard whole life plans, other options include universal life, indexed universal life, and variable universal life which add cash either from the growth of investments, or it’s derived from interest accumulating. Portfolio values fluctuate over time, but a provider will define a minimum guaranteed rate of growth as a floor value, and any accrued funds can be applied to premiums. Borrowing can also be done against the cash value of accounts, and even if a life insurance policy is canceled – cash can still be withdrawn. The drawback of taking this action though is that beneficiaries are no longer eligible to receive those funds, and just the death benefit would remain in the policy for the distribution to heirs. 

Universal life insurance can provide the ability for a policyholder to draw cash from the interest that accumulates. Indexed universal life insurance is essentially tied into the stock market, but doesn’t include risk of loss. Variable universal life insurance involves investments into stocks, mutual funds, and bonds. 

Permanent life insurance plans offer the chance for tax-free cash growth, and a core benefit comes in the form of flexibility – for example, an option that allows for the death benefit to be increased. 

Variable premiums and risk of loss are two potential downsides, and guaranteeing a minimum death benefit is imperative because, without a rider, this benefit could unfortunately be forfeited. A sound overall financial strategy should be put in place by an investment planner, and life insurance should be just one component of it. Securing a policy when younger in age is recommended if possible so that cash growth can mature and increase year over year. 

Guaranteed Acceptance and Final Expense Insurance

 

Guaranteed acceptance insurance is targeted towards individuals in the age group of 50 to 85, and these policies are provided without having to answer health-related questions or take medical exams. Maximum coverage is usually set at $25,000, and the money is intended to take care of final expenses and not other family costs such as a mortgage, college tuition, and other significant expenses. Final expense insurance can sometimes be picked up as an option within a life insurance policy, or on its own independent of one, and medical history does play a factor when an application is submitted for review.

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