At what age do you no longer need life insurance?
Quick Answer
Many people in their 60s and 70s may no longer need life insurance. They may have already paid off the house, stopped working, sent the kids off to care for themselves or accumulated enough assets to offset the need for life insurance. But sometimes buying or maintaining a life insurance policy over age 60 makes sense.
Most insurance companies will not sell new life insurance policies to people over a certain age, with the cutoff typically between ages 70 and 80. For people who are older or suffer from pre-existing health conditions, a guaranteed life insurance policy may be the best or only option.
Life insurance isn't worth it for every senior. For example, if you have enough money saved and invested to support anyone who relies on your income if you die, or you don't have anyone relying on your income and have enough money to cover end-of-life and funeral expenses, you may not need a life insurance policy.
Life insurance is a smart idea for most seniors. That's especially the case if you have a spouse, lack plans to cover end-of-life costs or don't have a long-term care insurance policy.
Some insurers write policies for people up to the age of 80. Financial advisors will often recommend you research the available policies for older consumers to find the best term life policy.
On average, a $250,000 10-year term life insurance for a healthy 70-year-old costs $164 per month, or $1,968 per year. A $500,000 10-year term life insurance policy for the same person costs an average of $292 per month, or $3,504 per year.
A unit of Colonial Penn coverage is the life insurance benefit amount you receive for $9.95 per month. Your age and gender determine the exact amount of insurance coverage a single unit provides. The older you are, the more units you will need to purchase in order to get an adequate death benefit.
But it's always a good idea to have life insurance, no matter your age. It will enable you to leave something behind to your loved ones and make sure they aren't stuck with your outstanding medical bills, income taxes, utility payments, and burial expenses.
Typically, the maximum age at which life insurance policies are issued depends on the individual life insurance company, so there really isn't a universal set limit. However, you may not find a lot of companies willing to issue you a policy if you're age 85 or older.
What is end of life insurance for seniors?
Final expense insurance for seniors is a whole life insurance policy designed to help cover end-of-life expenses. Since this type of policy doesn't require a medical exam, it's usually easier to qualify for than other life insurance policies. The death benefit is smaller, but premiums tend to be low.
The majority of individuals who are single, financially independent, have no dependents, and do not own a business, do not need life insurance.
Work: Since life insurance helps replace lost income to your family when you die, you may want to keep your policy if your spouse or other family members depend on you for income. But if you have very little income from your retirement job, it is likely unnecessary to continue with the policy.
Because whole life insurance never expires, you do not need to worry about outliving it. However, your policy may pay out before your death if you live to a certain age. Most whole life policies endow at age 100, while some recently issued policies now offer a maturation age of 121 years.
GEICO and Transamerica are the cheapest life insurance companies for seniors, with an average monthly premium of $175.74 for a 10-year term policy.
Fidelity Life is worth considering if you are older, have serious health issues or have been denied coverage in the past. The company offers several options for permanent no-exam coverage, including whole life, final expense and accidental death benefit policies.
AARP whole life insurance
Coverage is available to AARP members ages 50 to 80 and spouses or partners (ages 45 to 80). It features: Level premiums that don't change over time. Guaranteed death benefit up to $50,000.
Life insurance for those over age 70
You may, however, want to leave a legacy to your loved ones. With this in mind, a permanent policy would be a good option. But remember that the cost of these policies tend to increase with age. Another option would be to consider a policy to cover final expenses.
If you die during the first two years, Colonial Penn will only pay your beneficiaries a refund of your premiums plus roughly 10% interest. It's permanent whole life insurance, so the premiums will never increase, the death benefit won't decrease in value, and it builds cash value.
How much is AARP life insurance per month? AARP life insurance can cost as little as $11 monthly or as high as $900. The final price depends on the type of policy (whole, term, or guaranteed acceptance), product, age, gender, state of residence, and health.
How much is a $50000 policy with Colonial Penn?
Colonial Penn term life insurance review
For example, a woman who purchases $50,000 of coverage would pay: $35.21/month between the ages of 41 and 45. $45.21/month between the ages of 46 and 50. $56.46/month between the ages of 51 and 55.
Age | Policy Amount | Average |
---|---|---|
70 | $250,000 | $13,440 |
75 | $100,000 | $2,949 |
75 | $150,000 | $7,950 |
75 | $250,000 | $18,450 |
Term may be unavailable or too expensive
Because health risks increase as you age, term life insurance may become unaffordable. Some companies do not sell term life to people over a certain age. This often makes smaller whole life insurance policies for seniors a better option.
- MassMutual: Best overall.
- Guardian: Best for applicants with a history of HIV.
- Northwestern Mutual: Best for consumer experience.
- New York Life: Best for high coverage amounts.
- Pacific Life: Best range of permanent life insurance.
- State Farm: Best for customer satisfaction.
A death benefit gives your loved ones money – typically, tax-free – that they may use to pay your final expenses in the event of your death. This benefit is often referred to as 'burial insurance' or 'funeral insurance.
References
- https://www.marketwatch.com/guides/insurance-services/what-is-whole-life-insurance/
- https://insurancetrainingcenter.com/resource/named-perils-vs-all-risks-explained-in-plain-english/
- https://www.medmutual.com/Individuals-and-Families/Understanding-Health-Insurance-Costs.aspx
- https://www.vocabulary.com/dictionary/premium
- https://www.usatoday.com/money/blueprint/health-insurance/how-much-is-health-insurance/
- https://www.nerdwallet.com/article/insurance/life-insurance-needs-60s-70s
- https://www.forbes.com/advisor/health-insurance/how-much-does-health-insurance-cost/
- https://www.tdi.texas.gov/consumer/how-are-your-auto-and-homeowners-insurance-costs-calculated.html
- https://www.insuranceopedia.com/definition/1393/cost-of-insurance
- https://www.thezebra.com/auto-insurance/driver/other-factors/
- https://www.investopedia.com/terms/i/insurance-premium.asp
- https://www.moneygeek.com/insurance/life/cheapest/seniors/
- https://www.lhlic.com/consumer-resources/life-insurance-for-seniors-over-70/
- https://www.allstate.com/resources/what-are-premiums-limits-deductibles
- https://www.marketwatch.com/guides/insurance-services/best-senior-life-insurance/
- https://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/99xx/doc9924/chapter3.7.1.shtml
- https://www.valuepenguin.com/platinum-health-insurance-guide
- https://www.progressive.com/answers/state-car-insurance-information/
- https://www.usatoday.com/money/blueprint/life-insurance/aarp-life-insurance-review/
- https://study.com/academy/lesson/premium-payments-modes-types-provisions.html
- https://www.quora.com/Is-200-a-month-a-lot-for-health-insurance-1
- https://www.collinsdictionary.com/us/dictionary/english/premium
- https://www.investopedia.com/terms/l/levelpremiumlife.asp
- https://www.investopedia.com/ask/answers/051915/how-does-insurance-sector-work.asp
- https://www.du.edu/news/what-makes-american-healthcare-unaffordable
- https://www.investopedia.com/terms/p/premium.asp
- https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/
- https://www.healthpartners.com/blog/premium-vs-deductible-understanding-the-difference/
- https://www.usatoday.com/money/blueprint/life-insurance/best-senior-life-insurance/
- https://ldh.la.gov/page/health-factors
- https://www.thebalancemoney.com/what-are-insurance-policy-limits-5192903
- https://www.allstate.com/resources/types-of-insurance
- https://www.insurancebusinessmag.com/us/guides/insurance-everything-you-need-to-know-428386.aspx
- https://www.investopedia.com/ask/answers/052015/what-main-business-model-insurance-companies.asp
- https://www.policygenius.com/life-insurance/is-it-possible-to-have-too-much-life-insurance/
- https://www.doi.sc.gov/973/Common-Life-Insurance-Questions
- https://www.insurancethoughtleadership.com/leadership/5-cs-transformation-insurance
- https://www.cbsnews.com/news/is-life-insurance-worth-it-for-seniors-heres-what-experts-think/
- https://smartasset.com/insurance/what-is-a-premium
- https://www.nationwide.com/lc/resources/investing-and-retirement/articles/life-insurance-for-seniors
- https://en.wikipedia.org/wiki/Healthcare_in_the_United_States
- https://panfic.com/insurance-knowledge/prinsip-dasar-asuransi/
- https://www.morrisbart.com/faqs/what-questions-do-insurance-companies-ask-after-a-car-wreck/
- https://www.investopedia.com/terms/l/loss-cost.asp
- https://www.nerdwallet.com/article/insurance/insurance-premium-definition
- https://www.leguphealth.com/blog/the-health-insurance-percent-of-income-cap
- https://spp.co/blog/premium-pricing-strategy/
- https://www.comparethemarket.com/car-insurance/content/paying-for-your-car-insurance-annually-or-monthly/
- https://www.nerdwallet.com/article/insurance/best-life-insurance-companies
- https://www.decent.com/blog/health-insurance-costs-for-employers-an-unavoidable-expense-or-a-smart-investment
- https://www.investopedia.com/financial-edge/0212/4-types-of-insurance-everyone-needs.aspx
- https://www.usnews.com/insurance/glossary/insurance-premium
- https://nreig.com/choosing-between-basic-and-special-form-coverages/
- https://www.paddle.com/blog/premium-pricing
- https://www.hdfcergo.com/blogs/health-insurance/premium-vs-coverage
- https://wallethub.com/answers/ci/is-300-a-month-for-car-insurance-expensive-2140788739/
- https://www.bankrate.com/insurance/life-insurance/rates-by-age/
- https://www.investopedia.com/what-happens-if-you-outlive-your-term-life-insurance-policy-5076607
- https://www.marketwatch.com/guides/insurance-services/six-month-car-insurance/
- https://www.ehealthinsurance.com/resources/affordable-care-act/obamacare-premiums-unaffordable-for-many-middle-income-people-in-2019
- https://www.amfam.com/resources/articles/understanding-insurance/home-insurance-exclusions
- https://www.cnn.com/cnn-underscored/money/best-senior-life-insurance
- https://www.investopedia.com/terms/i/insurance.asp
- https://rmas.fad.harvard.edu/pages/risk-insurance-glossary-r
- https://www.healthcare.gov/how-plans-set-your-premiums
- https://choicemutual.com/blog/colonial-penn-995-plan-review/
- https://www.kff.org/report-section/ehbs-2023-section-1-cost-of-health-insurance/
- https://www.usatoday.com/money/blueprint/insurance/types-of-insurance-policies/
- https://www.investopedia.com/terms/a/adjustedpremium.asp
- https://wylylawfirm.com/special-basic-and-broad-forms/
- https://www.bankrate.com/insurance/car/12-vs-6-month-car-insurance/
- https://www.investopedia.com/terms/a/all-risks-coverage.asp
- https://www.merriam-webster.com/dictionary/premium
- https://www.bankrate.com/insurance/life-insurance/best-life-insurance-companies/
- https://www.iciciprulife.com/insurance/insurance-importance.html
- https://www.progressive.com/answers/why-insurance-rates-go-up/
- https://www.thinkinsure.ca/insurance-help-centre/all-perils-coverage.html
- https://doi.sc.gov/957/Understanding-Your-Insurance-Policy
- https://www.moneygeek.com/insurance/life/which-companies-offer-40-year-term/
- https://www.doi.sc.gov/1019/Understanding-Your-Deductible
- https://www.newyorklife.com/articles/senior-whole-life-insurance
- https://www.pgpf.org/blog/2024/01/why-are-americans-paying-more-for-healthcare
- https://www.valuepenguin.com/aca-subsidy-calculator
- https://www.insurance.wa.gov/types-insurance
- https://quizlet.com/595611408/personal-finance-insurance-post-test-flash-cards/
- https://www.tataaia.com/blogs/life-insurance/what-is-risk-cover-policy.html
- https://www.lhlic.com/consumer-resources/best-life-insurance-for-seniors/
- https://www.protective.com/learn/is-there-a-maximum-age-for-getting-life-insurance-if-im-over-50
- https://www.techinsurance.com/insurance-terms/all-risk-coverage
- https://www.ppic.org/publication/the-impact-of-health-insurance-on-poverty-in-california/
- https://www.canarahsbclife.com/faqs/life-insurance/how-to-calculate-your-life-insurance-premium-amount
- https://paytm.com/blog/insurance/what-is-insurance-definition-benefits-and-types/
- https://www.bankrate.com/insurance/car/what-is-a-car-insurance-premium/
- https://www.investopedia.com/articles/insurance/09/services-health-insurers-do-not-cover.asp
- https://www.pinnaclequote.com/blog/colonial-penn-life-insurance-9-95-plan-review/
- https://www.insurancecentermo.com/resources/blog/insurance-coverage-you-should-avoid/
- https://www.tdinsurance.com/products-services/auto-car-insurance/tips-advice/all-perils-vs-specified-perils
- https://www.healthcare.gov/glossary/affordable-coverage/
- https://www.kin.com/glossary/standard-deductible/
- https://www.aflac.com/resources/life-insurance/final-expense-insurance-for-seniors.aspx
- https://www.healthcare.gov/glossary/premium/
- https://www.eazy.com.sg/article/all-risks-vs-insured-perils
- https://www.squareone.ca/resource-centres/insurance-glossary/premium
- https://solutionsinsurance.com/statement
- https://www.investopedia.com/terms/a/all-risks.asp
- https://www.investopedia.com/terms/i/insurance-coverage.asp
- https://en.wikipedia.org/wiki/Premium_pricing
- https://www.iciciprulife.com/insurance/insurance-premium.html
- https://www.mercuryinsurance.com/resources/auto/why-did-my-car-insurance-go-up.html
- https://wallethub.com/answers/ci/5-factors-that-affect-your-auto-insurance-payment-2140826326/
- https://english.stackexchange.com/questions/33050/better-than-premium
- https://www.metlife.com/stories/benefits/types-of-health-insurance/
- https://www.valuepenguin.com/cost-of-obamacare-health-insurance
- https://www.apexinsadvisors.com/resource-center/insurance/what_is_a_premium
- https://www.nationwide.com/lc/resources/investing-and-retirement/articles/funeral-costs-final-expenses
- https://www.valuepenguin.com/life-insurance/colonial-penn-review
- https://www.mcminnlaw.com/principles-of-insurance-contracts/
- https://www.investopedia.com/ask/answers/09/calculating-premium.asp
- https://www.allstate.com/resources/what-is-property-and-casualty-insurance
- https://www.investopedia.com/terms/a/at-a-premium.asp
- https://www.bhartiaxa.com/life-insurance/types-of-insurance
- https://www.investopedia.com/articles/personal-finance/091014/who-needs-life-insurance-who-doesnt.asp
- https://www.insurancebusinessmag.com/us/guides/insurance-premium-what-is-it-and-how-does-it-work-430049.aspx
- https://www.peoplekeep.com/blog/what-percent-of-health-insurance-is-paid-by-employers
- https://www.worthinsurance.com/post/what-is-an-insurance-premium
- https://lifeinsurance.adityabirlacapital.com/insurance-dictionary/i/insurance-premium-refund
- https://www.insurance.ca.gov/01-consumers/110-health/10-basics/health-ins-costs.cfm
- https://brainly.in/question/26341887
- https://www.legion.org/plannedgiving/260321/do-you-need-life-insurance-during-retirement
- https://www.talktomira.com/post/how-much-should-i-spend-on-health-insurance
- https://www.healthmarkets.com/resources/health-insurance/health-insurance-cost-per-month/
- https://www.forbes.com/advisor/health-insurance/what-happens-if-you-dont-have-health-insurance/
- https://isure.ca/inews/all-perils-coverage/
- https://choicemutual.com/blog/aarp-life-insurance-rates/