Are over 65 and considering buying life insurance? Who is the best life insurance company for people over 65? Perhaps your term policy is expiring soon and you’re shopping for a new policy? In this article I’ll discuss term life options for those over 65, including life insurance no exam for seniors and why AARP is not best choice for most seniors.
We’ll show you rates from the competition so you can compare rates and see how they stack up. I’ll provide examples of pricing so you get an idea of what coverage may cost you. If you want a more specific quote, feel free to use our quote calculator.
Term Life Options for over 65
Most insurance companies that provide term policies won’t issue a policy that expires past age 90. Therefore, if you are 65 years old, the longest-term policy you will be able to buy is a 25 year term.
Of course you can also get shorter terms like 10-year term, 15 or 20 year term life.
If you are above 65 years of age, then you will be able to obtain a term policy of 10, 15 or 20 years. Lastly if you are over 71 you can buy a 10 or 15 year term – unless you buy a permanent life insurance policy, which can last for the rest of your life.
Permanent Life Insurance Coverage For People Above 65 Years Of Age
If you have longevity in your family, or want to guarantee that your life insurance policy will pay out when you die, you may want to consider a permanent policy that doesn’t expire.
There are several types of permanent policies available to you:
The least expensive permanent policies are typically burial or final expense policies. These are small polices that usually range from $5,000 to $50,000. The best burial life insurance companies provide these policies without having to take an exam.
Guaranteed No-Lapse Universal Life insurance policies provide permanent lifetime coverage, which is guaranteed to last for the rest of your life. They are cheaper than Whole Life policies and make a good choice when you want to buy a lifetime policy at the lowest cost.
Let’s take a look at pricing for a permanent policy for a 65 year old buying a $100,000 policy at Preferred plus rates.
In this case American General has the best rate at $169 per month.
Life Insurance Policies Without A Medical Exam
Many people want to skip the medical exam. It’s faster and more convenient. Sometimes it can be a little more expensive, but that’s changing because more companies offer it now.
Transamerica provides coverage up to $50,000 without the need to go through any physical exam up to 70 years old. However, they will order an Attending Physician Statement which essentially are the records maintained by your doctor. Transamerica is a great choice if you are less than or 70 years old and looking for policy between $25,000 and $50,000.
Policies that Require a Medical Exam
All life insurance policies with of $50,000 or above will require an exam. An exam consists of a nurse coming to your home to take a blood test, check your blood pressure, and collect a urine sample. They will also ask you about your health history, and any medications you take.
Let’s take a look at an example of pricing for a 65 year old man applying for a $100,000 10 year term policy. Preferred Plus Non-Tobacco monthly rates for a term of 10 years are as follows:
- Protective Life $52 per month
- Banner Life $54 per month
- SBLI $55
- North American $55
- Transamerica $56
- American General $58
From the above, you can see that it’s possible to save money if you compare quotes.
AARP Term Life
While AARP offers many benefits to seniors, their term life offering has several disadvantages. First, AARP has two plans, one that offers a maximum coverage of $50,000, the other offering a maximum of $100,000 of coverage. You can’t get more than that with AARP term life.
In addition AARP rates increase every five years. The benefit of AARP is that an exam isn’t required, however most seniors will be able to lock in a long term rate and get better pricing with a term policy from another company.
Bottom Line
Life insurance over 65 doesn’t have to be expensive. You can see from the examples in this article that coverage can be affordable. The key is comparing rates and working with an independent life insurance agent who can help you shop for term life insurance among many companies.
