How much does life insurance for seniors cost?
Life insurance is often thought of as a cost-effective and valuable form of financial protection.
In exchange for a relatively inexpensive fee to a provider each month (sometimes cheaper if paid annually), policyholders can receive protection in the form of hundreds of thousands of dollars or even more than $1 million. Some policy types will even allow the insured to access their account for cash while they're still alive.
However, the pricing structure for policy types like term and whole, vary based on a wide range of factors. One of the most important ones is age. Generally, younger people pay less for more coverage while seniors pay more for smaller amounts.
But the cost of life insurance for seniors is relative and, despite conventional wisdom, it still may be worth securing, particularly if it will help you meet a financial goal.
If you're a senior considering life insurance then start with a free online quote now so you know exactly what to expect.
How much does life insurance cost for seniors?
Life insurance is affected by a whole range of factors which we will explore further below. Accordingly, the cost of life insurance for seniors is relative.
For a 64-year-old male living in New York, Haven Life will provide a 10-year term life insurance policy in the amount of $150,000 for $98.74 per month. This is a quote for a non-smoking male considered to be in good health.
For a 64-year-old female living in New York, Haven Life will provide a 10-year term life insurance policy in the amount of $150,000 for $70.11 per month. This is a quote for a non-smoking female considered to be in good health.
Note that, with all other factors being equal, senior women can generally expect to pay less than senior men. But any of the above factors (location, length of policy, policy amount, etc.) can significantly alter the corresponding price.
You can get your own free price estimate by simply answering a few questions online now.
3 factors that affect life insurance costs
The factors that affect senior life insurance rates are similar to the ones that affect rates for most policyholders, regardless of age. But since seniors are considered riskier to insure they can generally expect to spend more.
Here are three other factors, besides age and gender, that can affect coverage and cost.
- Health: If you're sick, have a current medical condition or any pre-existing ones, you may pay more for life insurance than if you were fit with no issues. This is especially true for smokers as the health issues they are prone to are well-known, making them problematic to insure at a reasonable cost.
- Policy type: Not all policies are created equal. Some offer cash-out options. Some do not. Some insure you for a select time frame while others cover you throughout your life. Different policies have different costs. Understand the difference between whole and term life insurance. The type you choose (and are eligible for) will influence your rate. The above example, for instance, is for a term life insurance policy. That rate is likely to increase significantly for a whole life insurance plan (assuming the applicant is approved at all).
- Family medical history: Your genetics play a role when getting life insurance. A history of cancer, heart disease or diabetes could be an indicator of your own health. If you have a family background with any major health issues, it could be a determining factor in what you pay for life insurance.
Not sure how these factors would affect what you'd pay? By answering a few simple questions you can get a quote online right now.
The bottom line
Life insurance can be a valuable protection for seniors. Seniors should understand their goals, their budget and the factors that can affect their rates. From there they can work with a life insurance provider to secure a plan that works best for them.
Use the table below to start exploring your options.
