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As you get older, it’s important to make sure that you are financially provided for in the event of an unexpected life event. Life insurance is one way to make sure that your finances are secure, but finding affordable life insurance for senior citizens can be a challenge. However, there are several ways to ensure that seniors can access the coverage they need at an affordable cost. In this article, we will discuss how seniors can access affordable life insurance coverage and the importance of having such protection.
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Benefits of Life Insurance for Senior Citizens
Life insurance is an important financial tool for senior citizens as it can provide invaluable peace of mind, secure their family’s future, and provide access to funds for end-of-life expenses. Senior citizens often find it difficult to qualify for traditional life insurance policies due to their age and health concerns. Fortunately, there are policies designed specifically with seniors in mind that can provide them with the coverage they need at an affordable price.
The primary benefit of purchasing a life insurance policy is the financial security it provides for loved ones in the event of death or disability. If a senior citizen passes away suddenly, their family will be provided with a lump sum payment from the policy which can help cover funeral costs and other end-of-life expenses.
Types of Affordable Life Insurance for Seniors
The thought of life insurance for senior citizens can be both daunting and costly. However, there are various types of life insurance policies available that are tailored to meet the needs of senior citizens in an affordable way.
For those 65 years and older, term life insurance is often the most cost-effective option. This type of policy offers a set amount of coverage at a fixed rate over a certain period of time and typically does not require medical exams or health assessments to qualify. In addition, many companies offer discounts for seniors who purchase group term life policies with their employer or other organization they belong to.
Universal life insurance is another type of policy that is well suited for seniors as it allows more flexibility in terms of payment and protection options. This policy also allows you to build cash value which can be used for retirement planning or other financial goals.
Common Mistakes to Avoid When Shopping for Senior Citizen Life Insurance
Shopping for life insurance for your elderly family member can be an overwhelming process. It’s important to understand the different types of policies available, and to educate yourself on the options that are best suited for your senior citizen’s needs. By avoiding common mistakes when shopping for life insurance, you will save time and money while ensuring your loved one is properly protected throughout their retirement years.
When it comes to purchasing life insurance coverage for seniors, some of the most common mistakes to avoid include not researching all available policy options, failing to compare prices between various insurers, and not understanding differences between term and permanent policies. Seniors should also consider whether they need additional coverage beyond a basic policy such as accident or disability coverage.
Tips for Making Senior Citizen Life Insurance More Affordable
For senior citizens, life insurance is an important part of their financial planning. It can provide a sense of security and peace of mind while also helping to ensure that their family and loved ones are taken care of in the event that something happens to them. But purchasing life insurance for seniors can be expensive, so it’s important to find ways to make it more affordable. Here are some tips for making senior citizen life insurance more affordable:
Research different policies carefully – Different insurers have different offerings when it comes to coverage and premiums, so take time to compare the options before selecting one. Be sure to factor in any discounts or special offers that may be available for seniors as well.
Why Seniors Should Consider Investing in Life Insurance
Life insurance is an important consideration for all individuals, but senior citizens should especially consider investing in life insurance to protect their families and secure their savings. As seniors age they become more vulnerable to unexpected health changes or other issues that can lead to higher medical bills, leaving them with fewer resources and a decreased quality of life. Investing in life insurance provides the peace of mind knowing that if something unexpected happens during your golden years, you have a plan in place and financial support available.
There are many benefits associated with investing in life insurance as a senior citizen. Not only does it provide protection against potential medical expenses, but it also ensures that your family is taken care of financially even after you’re gone. This is especially important for those who depend on your income or would struggle without your presence.
Best Deals on Life Insurance for Seniors
New York Life
- AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations.A++
- Accepts Credit Cards: No
Pros
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Policies available to 90-year-old applicants
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A++ AM Best rating
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Long history of dividend payments
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Few customer complaints
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Broad selection of riders
Cons
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Must talk to an agent to get a quote and apply
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Limited policy information online
New York life ranks as having the overall best senior life insurance for a number of reasons. It’s one of very few companies we reviewed that issues policies to applicants up to age 90 (most companies cap applicant age at 85). And considering that it’s more than 170 years old itself, the company has weathered many financial storms, including multiple recessions and the Great Depression. Its strong financial position has earned it an A++ rating (the highest available) from AM Best.1 An A++ rating means AM Best believes the company has a superior ability to meet its ongoing insurance obligations.
The company receives few complaints, according to the National Association of Insurance Commissioners (NAIC).2 Plus, whole life policyholders are eligible for life insurance dividend payments, and have been receiving them every year since 1854, the longest record for consistent dividend payments of all companies we reviewed.
New York Life also offers an array of riders with which to customize your policy, including a disability income rider, which only one of our other top senior companies offer. The downside is that you’ll need to provide your phone number and other personal information to get detailed policy information and a quote. Not surprisingly, there’s no online application option either.
BEST FOR FINANCIAL STABILITY
Guardian
- AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations.A++
- Accepts Credit Cards: No
Pros
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A++ AM Best rating
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Very few customer complaints
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Policies available to 90-year-old applicants
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Pays dividends on whole life policies
Cons
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Can’t apply without an agent
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Hard to find policy-specific information online
In business since 1860, Guardian Life received an A++ rating from AM Best for financial stability.3 Fewer than 10% of the companies we reviewed received this rating; New York Life is the only other one on this list. Also like New York Life, 90-year-old applicants to Guardian are eligible to apply for coverage, and whole life insurance policyholders are eligible for dividends.
Guardian also has a very low incidence of customer complaints, according to the NAIC. Based on three years of complaints, Guardian received an exceptionally low number for a company of its size.4 In fact, it had the 6th-lowest number of complaints (based on its size) out of the 91 companies we reviewed.
And while you can find copious educational material on the company’s website, finding policy-specific information is difficult to impossible. You’ll need to reach out to an agent for that. You’ll also need to contact an agent to apply.
BEST FOR FEWEST COMPLAINTS
Pacific Life Insurance
- AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations.A+
- Accepts Credit Cards: No
Pros
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Very few customer complaints
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Policies available to 90-year-old applicants
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Term coverage available to 70-year-old applicants
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Many accelerated death benefits and riders available
Cons
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No online quote or application on the website
Pacific Life had the second-fewest number of complaints relative to its size of all 91 insurance companies we reviewed.5 The company is especially good for seniors because it offers senior life insurance in the form of term coverage for applicants up to 70 years of age and permanent coverage for those up to 90 years old. Only six other companies of the 91 we considered offer coverage to 90-year-old applicants.
Additionally, Pacific Life offers a whole suite of accelerated death benefits, many at no additional cost, including riders for chronic and terminal illnesses and long-term care. (Many insurance companies charge extra for some or all of these riders.) Like some other insurance companies on this list, the online offerings at Pacific Life are limited. You can’t get a quote or apply without calling the company or applying through a third party agent or broker.
John Hancock Life Insurance
- AM Best Rating: AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations.A+
- Accepts Credit Cards: No
Pros
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High maximum age for term insurance applicants
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Offers insurance for diabetics
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Optional critical illness rider doesn’t reduce the policy’s death benefit
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Wellness program
Cons
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Most accelerated benefit riders cost extra
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No online quote, application, or live chat for applicants
John Hancock offers the most compelling term life insurance offerings of our top-ranked companies for seniors. It issues term policies to applicants up to age 80, while many competitors have cutoffs at age 75 or younger. Its maximum issue age for other types of insurance is also high, at 90.
In addition, we like that John Hancock offers a critical illness rider that isn’t an accelerated benefit, so the death benefit doesn’t get reduced if the rider is used. That’s uncommon. The company also caught our eye for its insurance for diabetics as well as its Vitality rewards. Vitality provides incentives for policyholders to live a healthy lifestyle, including potential discounts on senior life insurance premiums.
John Hancock’s main weaknesses are that accelerated death benefit riders cost extra, and, like others on this list, it doesn’t allow you to get a quote or apply online without an agent.
Compare the Best Life Insurance for Seniors in 2023
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Overall Rating | Best For |
AM Best Rating AM Best is a credit rating agency that assigns insurance companies a letter grade from “A++” to “D.” A company’s grade indicates its ability to pay its claims and honor its financial obligations.
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Term Life Sample Cost
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Policy Types
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Accepts Credit Cards
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*Quotes above are examples of what a 40-year-old in excellent health might pay for a 30-year $250,000 policy. Get life insurance quotes from multiple companies to find your best rate.
