Start Small
Starting with smaller amounts, say anything up to $25,000 in coverage, will limit you to simplified issue policies that do not require a paramedic exam. This is the easiest way to purchase life insurance for seniors over 60.
There are about a dozen insurance companies that offer this type of life insurance. If you can answer all the medical questions asked with a no, then the carrier will issue the policy after examining various databases that will check your medications for the accuracy of your answers.
If everything is in order, your coverage will start immediately upon payment of the first month’s premium.
If you have certain health conditions that prevent immediate coverage, you may qualify for a “graded benefit.”
Policies differ on this coverage with some paying for death for medical reasons after a two-year waiting period while others pay a percentage of the death benefit during the first two or three policy years. (These policies cover accidental death on day one.)
If you are healthy, your decision of which carrier to choose can be based on the cost and quality of the company. If you have health issues, you may qualify with one carrier and not another.
From your standpoint as a consumer, the best advice as to which insurer to use should come from an experienced independent agent. They know how the questions differ and can help you to choose the right company for your situation.
Guaranteed Issue Coverage
If you are unable to qualify medically for life insurance, you still can purchase “guaranteed issue” coverage. This policy type is available to most people as long as they can sign the application.
Applicants must be 85 years old or younger. In a few states, 80 is the maximum age. Unlike other coverage, this policy has a two-year wait before the death benefit takes effect.
However, if the insured dies within that two-year timeframe, all premiums paid plus interest are returned to the beneficiary.
Seniors also have the ability to buy a fully underwritten policy that requires a paramedic exam and medical records. Depending on where you live, it is possible to purchase $25,000 or more of life insurance. (Some states require a minimum face amount of $50,000.)
Because the insurance company will have more information with which to make a decision, the cost of coverage is less, in some cases significantly. Because of this, a potential applicant who wants or needs $15,000 of “final expense” coverage may wish to compare premiums to a $25,000 policy that is fully underwritten.
Although many seniors are not comfortable with having blood drawn, often having another family member present will alleviate that concern.
Term Insurance for Seniors
A word about term insurance for seniors. Although term coverage is available for purchase well into the ’70s for many people, there are many differences between buying term vs. permanent coverage at older ages.
While term is less expensive than permanent coverage at younger ages, that is not as much the case when you’re older. Also, there is the real risk of having term coverage end while you are still living.
What’s important here is the purpose of the coverage. While most seniors purchase coverage to protect their family having to pay final expenses including funeral and other obligations, some seniors only need insurance for a short time to cover a mortgage or some other temporary need. In this case, it is reasonable to consider term insurance.
While this article is intended to acquaint you with the various options available when buying seniors life insurance over age 60, each applicant may have unique health issues which can impact the choices available to you.
Therefore, while the information in this article will help you to understand the various types of life insurance, there is no substitute for an experienced independent life insurance agent.
Not only can an agent help you to finalize the appropriate coverage for you, but the agent can also give advice based on your current health and compare premium prices to ensure you get the best value for your money.
For additional information on senior life insurance, visit Life Insurance Guide to Policies & Companies.
