Last Updated: October 2020
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So you’ve turned 65 years old and find yourself with little or no life insurance. You may think that it’ll be too expensive to purchase a policy. Keep reading to find out how you can still get coverage and security for your spouse and family.
Most people at 65 are surprised to discover that life insurance is a lot cheaper than they think, you can even find an affordable million dollar life insurance policy!
Below, you’ll learn about:
- Why Do Seniors at Age 65 Need Life Insurance Coverage?
- Sample Rates for Term Life Insurance at 65 Years Old
- The Best Life Insurance Companies for 65-Year-Olds
- The 5 Best Burial Insurance Companies for Seniors Over 60
- The Best Types of Life Insurance for 65-Year-Olds
- How to Apply for Life Insurance at Age 65
Life Insurance is Boring. Let’s Get To The Root Of It! Here are the key takeaways…
If you are 65 years old and need life insurance, affordable policies are still possible. A 10-year term $100,000 life insurance policy for a male will cost about $56 a month. For the same policy for a female, it will cost about $36 a month. Working with an independent agent is the best way to secure the lowest rates.
Why Do Seniors at Age 65 Need Life Insurance Coverage?
Once a person reaches age 65, there are some schools of thought that feel that life insurance is no longer necessary. This is because many individuals and couples at this stage in their lives don’t feel the need to provide for children outside the home any longer.
While this may be true, there are still some other financial obligations that those who are in their 60s, and older, have that can justify having a good, solid life insurance policy to help them defer these expenses.
Life Insurance Can Help with Mortgage and Other Debts
Many years ago, seniors who were 65 and older would typically have their mortgage, and other debts paid off. Those in this age bracket were also usually retired. Today, however, many things have changed, due in large part to our longer life expectancies.
As a 65-year-old, you may still be very active, and even work. You may also still have a mortgage balance, as well as car loans, credit card balance, and other types of debt. Your spouse, significant other, or other loved ones would be saddled with these financial responsibilities if you passed away.
By purchasing a life insurance policy, you could provide the funds that are necessary to instantly pay off these obligations, and keeping the ones that you love out of long-term financial hardship.
It Can Replace Retirement or Pension Income
While you may have carried life insurance in the past to replace your wages as a young breadwinner, there are many seniors who own life insurance to replace lost retirement income for a spouse or significant other.
If you want to learn more about term life insurance for seniors, we can answer your questions and help you in this process.
In many cases, when an individual passes away, either some or all of his or her pension or other retirement income will also stop. If his or her partner counts on that income to pay their living expenses, this could put the partner at risk of great financial hardship.
Therefore, purchasing a life insurance policy could help to replace the funds that are needed for this lost income. For example, a lump sum could easily be turned into an income annuity so that the partner can receive funds on a monthly or annual basis.
Create an Instant Estate
In some cases, life insurance can even create an “instant estate.” For those who want to ensure that loves ones inherit something, but do not have many assets to provide, life insurance can provide a set amount of money in return for only a premium payment.
Those who inherit life insurance proceeds can do so income tax-free. Therefore, in many instances, 100% of the funds that are inherited from a life insurance policy can be obtained and used for whatever the recipient chooses.
Cover Burial Costs & Final Expenses
Regardless of how much other debt you may or may not have, one thing that most people will end up with is final expenses. These are the costs that are associated with one’s funeral and burial. Today, on average, these can be in the range of $10,000 when you factor in a headstone, burial plot, flowers, and the memorial service itself.
Also, there could also be uninsured medical costs that you incur, and possibly hospice expenses that are also not covered by Medicare or your regular insurance policy. By having a life insurance plan that provides funds to your loved ones, they can quickly and easily pay off these debts.
Cover Estate Taxes
In some instances, an individual’s estate may be subject to estate taxation. These taxes can eat away more than half of the total value of the estate, thus, providing Uncle Sam with more of your assets than your loved ones get.
By setting up a life insurance policy so that the funds from this plan go towards paying the taxes that are due, you can ensure your loved ones that they will inherit what is coming to them from the estate.
Donate to Charity Tax-Free
If you have a favorite charity, then life insurance can allow you to donate a great deal of money to this organization, literally for pennies on the dollar. The funds that come from life insurance proceeds can go to the charity tax-free.
Sample Rates for Term Life Insurance at 65 Years Old
Be aware that the rates in the chart are done for non-tobacco users. If you need life insurance and do smoke, expect the rates to be double.
Rates for Term Life Insurance for 65-Year-Old Males
Term life insurance for a 65-year-old male “Preferred” health class (minor or no health issues), monthly rates:
| Term | $50,000 | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|---|
| 10-Year | $42 | $56 | $130 | $247 | $481 |
| 15-Year | $62 | $84 | $177 | $349 | $665 |
| 20-Year | $82 | $114 | $267 | $519 | $1021 |
Term life insurance for a 65-year-old male “Standard” health class (controlled health issues), monthly rates:
| Term | $50,000 | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|---|
| 10-Year | $56 | $80 | $192 | $339 | $671 |
| 15-Year | $73 | $119 | $277 | $538 | $966 |
| 20-Year | $98 | $163 | $411 | $805 | $1493 |
Rates for Term Life Insurance for 68-Year-Old Females
Term life insurance for a 65-year-old female “Preferred” health class (minor or no health issues), monthly rates:
| Term | $50,000 | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|---|
| 10-Year | $28 | $36 | $81 | $148 | $278 |
| 15-Year | $41 | $50 | $112 | $209 | $400 |
| 20-Year | $57 | $76 | $170 | $331 | $575 |
Term life insurance for a 65-year-old female “Standard” health class (controlled health issues), monthly rates:
| Term | $50,000 | $100,000 | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|---|---|
| 10-Year | $40 | $49 | $113 | $203 | $400 |
| 15-Year | $54 | $73 | $173 | $277 | $548 |
| 20-Year | $67 | $105 | 255 | $498 | $973 |
The Best Life Insurance Companies for 65-Year-Olds
The best life insurance companies for age 65 are listed here. Every person has different financial needs and health problems, so each company will view your risk differently. But overall, these are the best companies for 65-year-olds.
- Protective Life Insurance Company – Best for term life insurance. They have low rates for people in their 60’s.
- Mutual of Omaha Life Insurance – Best for whole life insurance. They have great rates for whole life insurance in smaller amounts to cover burial costs and final expenses.
- Banner Life Insurance – Best for high-risk life insurance. Banner Life prices their substandard business rates at a lower cost for high-risk individuals. They also approve many health conditions and risks that other carriers decline for coverage.
The 5 Best Burial Insurance Companies for Seniors Over 60
For most seniors, burial insurance is the best type of coverage because of its affordability and value. The 5 companies below are the best burial insurance companies for anyone over age 60.
- Mutual of Omaha – Great for low rates, and reputation with strong financial ratings.
- Family Benefit Life Insurance – Great for low rates, especially for high-risk applicants. Only available in 28 states.
- Prosperity Life – Good rates for non-cigarette smokers (marijuana, chew, dip, or cigar smokers) & diabetics.
- Guarantee Trust Life – Great for high-risk applicants who can’t qualify for level coverage with other companies. Only 5 health questions on the application. Graded death benefit life insurance policy, but cheaper and better than other guaranteed acceptance policies.
- Royal Neighbors of America – Great for extra benefits with your coverage. They also accept a lot of risks that other companies won’t.
The Best Types of Life Insurance for 65-Year-Olds
There are dozens of life insurance policies to choose from at 65 years old. Below, we’ll help you navigate how to find the right policy for you.
Determine How Much Coverage You Need
The first step is to ask yourself why you need a life insurance policy in the first place.
- Do you need to supplement your own income for your spouse’s benefit?
- Do you simply want to cover some debts that you may still have after you pass?
Based on why you need the policy, you can decide how much coverage you might need. For example, if you just need to cover burial costs, a $10,000 burial insurance policy will do. If however, you need to cover significant debts, you may need $100,000 or more in coverage.
Decide How Long You Need Coverage
The next thing to think about is the term lengths.
- Will you need this policy to last only until you retire?
- Do you need it to last until you think your debt will be paid off?
- Do you want a policy for life?
If you only need the policy for another 15 years, then choosing a 15-year term policy will make sense.
Some people, want their life insurance to extend right up until the time that they pass away. In that case, consider a final expense policy or whole life insurance.
Two Other Types of Policies Worth Considering
For 65-year-olds, whole life insurance can be quite expensive depending on the plan you choose. Some people though, are only looking to have their funeral and other final expenses covered, in which case life insurance can be very affordable. People like this usually take out a $10,000-$25,000 policy and the benefit is that there is no medical exam required and your premiums are guaranteed for life.
“Guaranteed Universal Life” insurance can be another good choice for 65-year-olds who are simply looking for cheap life insurance that will not expire. We do recommend getting one of these policies before turning 67 as the premiums begin to get burdensome.
This is also referred to as “Term for Life” insurance because it is a permanent life insurance policy that has level premiums for the rest of your life. You can even get a policy as low as $25,000 worth of coverage although it will require a medical exam.
What Type of Life Insurance is Available If You Have Health Issues?
If you do happen to have certain adverse health issues, there are options for coverage available that do not require you to take a medical examination as a part of the overall underwriting process. By applying for a guaranteed acceptance life insurance policy, you will be better able to qualify for the coverage that you need.
In many instances, guaranteed issue life insurance will only have just a few questions to answer on the application for coverage. Because there are no medical underwriting requirements to contend with on the policy, these plans can typically be issued within just a few days. Therefore, you can have your coverage very quickly.
How to Apply for Life Insurance at Age 65
The best advice that we can give to anyone who is seeking life insurance and is over 60, is to work with a reputable independent life insurance agent who can contact all of the top-rated life insurance companies for you. This will help you compare the cheapest life insurance rates available.
While you will not get as cheap of a policy as if you were looking at life insurance at age 62, your independent agent has access to many highly regarded life insurance carriers.
They can contact the companies and can bring back the best rates to help you compare the quotes side-by-side.
If you’re healthy, then our online quote tool will be completely accurate and have up-to-date results. Simply choose the cheapest option available.
If you already have life insurance at the standard rate and what to know why you didn’t get the preferred life insurance rates, we can help you with any questions you may have.
If you currently deal with any sort of health issues, it would be an advantage to contact a life insurance agent. With so many carriers in the marketplace, there might be one or two that view your situation more favorably than others. Having a licensed agent help you could save you hundreds or thousands of dollars in monthly premiums.
We understand that purchasing life insurance can be somewhat overwhelming, especially for those who may feel that coverage is out of reach. But, the truth is that you do still have many options that are available. You may just need an expert who can walk you through the process and assist you with locating the right life insurance policy for a 65-year-old in your situation.
So, contact us today!
I’m in excellent Health 65 years old non smoker taking no medications exercising everyday looking forward to your quote
It was great helping you secure coverage. All the best William.