While term life insurance might make sense for younger older people who only want short-term coverage, for example, until their homes are paid for, comprehensive life insurance may be a better fit for an older person's financial plan. A financial advisor can recommend the best policy for your needs. Buying life insurance for seniors can seem overwhelming. Premiums can be high, the details of the plan can be confusing, and the ramifications of your decision can be very varied.
In general, you'll get the best rates and options if you contact companies directly. If you are in good health, consider applying for a policy that requires a medical exam, as rates increase with age and poor health, it may be an advantage for you to demonstrate to the company that you are healthy. Life insurance is important for seniors who want to cover funeral expenses or ensure that their spouse has financial support during retirement. People over 70 can get affordable term life insurance policies, especially if they're healthy.
But even people over 80 can get affordable universal or guaranteed life insurance. If you're looking for permanent insurance that will last your entire life, full life insurance may be a viable option. State Farm offers a variety of term, comprehensive and universal life insurance products to choose from, as well as other types of insurance. This is because life insurance premiums are based on when the insured person is most likely to die, and higher-risk applicants (the type guaranteed issuance policies are designed for) are more likely to die sooner than later.
It offers several different policies, including term life insurance and full life insurance with relatively high age limits, but be prepared for a medical exam to find out the higher coverage limits. Life insurance for the elderly generally refers to final expense insurance, which is also called burial insurance or funeral insurance. To help you search for life insurance coverage for seniors, CNBC Select compared dozens of life insurance companies and ranked them based on factors such as customer satisfaction, age limits, financial stability and the types of insurance offered. While full life insurance is the most popular type of permanent coverage, guaranteed universal life insurance is often the best option for seniors.
But if you want to provide for your loved ones every time you die, take out permanent life insurance or a burial insurance policy. Getting life insurance as an older adult can be a challenge, as many life insurers place age restrictions on who can buy policies. Comprehensive life insurance generally has higher premiums than term life insurance because it lasts the rest of your life and includes a cash-value account that can accumulate deferred taxes. Guaranteed universal life insurance is the most affordable way for seniors to obtain permanent life insurance coverage, since policies often have little or no cash value component.
Comprehensive life insurance policies or universal life insurance policies are permanent policies and may also be suitable for older people who want to leave their heirs more than a final expense policy could offer. Guaranteed universal life insurance is a popular option for seniors whose existing term life insurance policies have expired or are about to expire. You can only buy a Banner term life insurance policy up to age 75, but the insurer has some of the best rates available, even if you have a medical condition.