At what age can you no longer get term life insurance?
90 is the maximum age limit to obtain new life insurance. How long a policy lasts depends on the type of policy. Some policies last forever, whereas some will expire when you're between 70-90.
Generally, you won't be able to get a policy with a term of 30 years or more if you're older than 55. However, you'll still be eligible for shorter-term policies with some companies until you're in your 70s. Final expense insurance: These policies are built for applicants who are generally between age 45 and 85.
Life insurance can provide peace of mind at any age, but isn't always necessary after age 60. To see if you need life insurance, assess your family's needs, your financial resources and assets, your outstanding debts and your long-term financial goals.
Guardian and New York Life issue some policies to applicants as old as 90. For term policies, consider John Hanco*ck, especially if you're an older applicant. You'll need to talk to an agent, but can apply for a 10-year term policy if you're 80 years old.
Once you turn 70, the Optional Term Life Insurance you continued at retirement reduces to a percentage of the amount you had before you turned 70. For example, at age 70, you will only receive 65% of the amount of coverage you elected before you turned 70.
There are two types of life insurance you can buy: term and permanent. Getting term life insurance for seniors over 75 is pretty much impossible.
One of the key benefits of term life insurance is that it can be more affordable compared to whole life policies. This can make them a good choice if you're a senior in good health and looking to buy life insurance with lower rates than whole life or another type of permanent* policy.
When is term life insurance not worth it? Term life insurance probably isn't worth the costs if you don't have any significant debts to pass on to your loved ones or you don't have dependents or a spouse that you'd leave in a bind by passing away.
Do you get your money back at the end of a term life insurance policy? No – unless you have a return of premium policy. However, such policies can be 2-4 times more expensive than a regular level term life insurance policy.
Guardian Life Insurance is our top pick for older seniors because it is one of a handful of insurers we've reviewed that issues policies up to age 90. It offers no-exam policies up to $3 million in coverage, though seniors might face significant rates for higher coverage amounts.
What does $9.95 a month get you with Colonial Penn?
A unit of Colonial Penn coverage is the life insurance benefit amount you receive for $9.95 per month. Your age and gender determine the exact amount of insurance coverage a single unit provides. The older you are, the more units you will need to purchase in order to get an adequate death benefit.
Guaranteed Universal Life Insurance (GUL)
If you are 80 or older and want to leave a lump sum of cash to your loved ones after you pass away, a GUL policy may be a good addition to a funeral insurance policy, especially if you have health issues. Just make sure you have the budget for it.
- Penn Mutual. : Best for historical performance.
- Mutual of Omaha. : Best for customer service.
- Pacific Life. : Best if you want to access your policy's cash account.
- Protective. : Best for term premiums.
- Minnesota Life. : Best for permanent life insurance.
- Midland National. : Best value.
- Nationwide.
If your term life policy expires while you're still alive, your insurance company will notify you that your coverage has ended, and you no longer need to pay your premium. If you still need coverage, it may be possible to renew your policy for a set period of time.
Your coverage ends if you outlive your term life policy. If you still need life insurance after the term expires, you can choose to convert your policy to permanent insurance, buy a new policy, or go without coverage.
The pros and cons of term and whole life insurance are clear: Term life insurance is simpler and more affordable but has an expiration date and doesn't include a cash value feature. Whole life insurance is more expensive and complex, but it provides lifelong coverage and builds cash value over time.
The bottom line. Life insurance is a smart idea for most seniors. That's especially the case if you have a spouse, lack plans to cover end-of-life costs or don't have a long-term care insurance policy.
| Company | Average Monthly Cost | |
|---|---|---|
| #1 | Nationwide » 3.6 U.S. News Rating | $41.89 |
| #2 | Pacific Life » 4.9 U.S. News Rating | $55.08 |
| #3 | State Farm » 3.7 U.S. News Rating | $60.94 |
| #4 | Guardian Life » 4.5 U.S. News Rating | $61.00 |
AARP's whole life insurance policy offers $5,000 to $50,000 as a death benefit and is available if you're between the ages of 50 and 80.
That's why Orman says it's best to set up a term life insurance policy that will remain in effect until your children reach early adulthood. In fact, in a recent podcast episode, Orman suggested getting life insurance that will last until your kids reach age 23 or 24.
What happens if you never use your term life insurance?
If you've made it to the end of your term and you haven't died (let's hope this is the case), then typically one of two things happen: The policy will simply end and you'll no longer be covered, or your insurer may allow you to convert all or a portion of the policy into permanent life insurance.
Life insurance for those over age 70
With this in mind, a permanent policy would be a good option. But remember that the cost of these policies tend to increase with age. Another option would be to consider a policy to cover final expenses.
In other words, when you buy term life insurance, you are only covered for the period of time that you pay the premiums. If the term of the policy ends before you pass, then the policy typically expires and the insurer won't pay a death benefit.
Drawbacks of term life insurance
If you outlive the term of your term life insurance, the policy expires and has no value. If you're looking for a way to leave money behind, a term life insurance policy most likely isn't a good fit. No cash value. Term life insurance doesn't build cash value.
Whole life and universal life insurance have many similarities, and both are great options to help protect your family. The main difference is that whole life usually doesn't change—many features are guaranteed for life—while universal life offers flexibility.
