Best Life Insurance for Senior Citizens! Ages 60 - 69
Age ain’t nothing but a number right? Nope, not if you’re looking for the Best Life Insurance for Senior Citizens!
So, if you want to find the most affordable life insurance over 60 you’re in the right place.
Low-cost term life insurance for seniors isn’t just a pipe dream. But there are other options you want to investigate too!
At Policy Architects we know how to find you the right policy. One that will fit your unique circumstances.
If you’re searching for the best life insurance for senior citizens, always call an independent life insurance agent before you sign on.
We can literally save you thousands of dollars and lots of hassle!
Best Life Insurance for Senior Citizens
Important Birthdays
So are all 60 year olds created equally in the eyes of life insurance companies?
I mean seriously what’s a birthday here and there?
Well, there are definitely substantial differences in how a life insurance company treats a 60 year old vs a 69 year old and that makes perfect sense.
Life insurance is all about assessing risk and for every birthday you pass your risk of dying grows. I’m going to show you how this works from year to year.
“Ever since I turned 60 a few years ago, I’ve been realizing that these standard societal notions of what it means to be old – especially for women – just aren’t applying to me. And most important, that I can craft my later years to be what I want them to be, rather than what anybody else tells me they must be.”
Getting Older? Here Are 7 Ways to do it Right! Erika Andersen, Forbes
A Year Here and There Matters in Your 60's When It Comes to Life Insurance
If you’re looking for the Best Life Insurance for Senior Citizens, I’m going to make it easy for you.
Let’s look at a man and woman applying for coverage throughout their 60’s. We’ll quote them at standard rates because it’s best to assume they may have some age-related health issues.
Preferred rates are less common as you get older.
BUT if you’re in excellent shape and obtain a preferred or preferred plus rating you pay substantially less than the quotes below.
Also please note if you have a health condition that you’re worried is high risk, check out my article on affordable high risk life insurance here.
I bet you’re healthier than you think!
That’s why you should never rely on information you find online without talking to an independent life insurance agent. Call Policy Architects today. We can help!
The Best Life Insurance for Senior Citizens from 60 to 69 Years Old
60 Years Old
EMPIRE LIFE
Doug Looking for 20 Year Term
250K Coverage, Standard Rating
$249.98
60 Years Old
EMPIRE LIFE
Olivia Looking for 20 Year Term
250K Coverage, Standard Rating
$ 167.18
As you can see right off the bat, our 60 year old male subject, let's call him Doug, spends quite a bit more on his premiums than his female counterpart, Olivia. In fact men pay 50% more than women on average for their life insurance.
Ouch!
This is because life expectancy for a man is lower than it is for a woman. We'll use Empire Life Insurance in these illustrations because their prices are lower and I think they're a good carrier for Term insurance.
61 Years Old
EMPIRE LIFE
Doug Looking for 20 Year Term
250K Coverage, Standard Rating
$273.60
61 Years Old
EMPIRE LIFE
Olivia Looking for 20 Year Term
250K Coverage, Standard Rating
$ 182.70
In one year, rates go up approximately 9%. At 61 Olivia is already pays $3,724 more over the term of her policy than if she'd applied when she was 60.
62 Years Old
EMPIRE LIFE
Doug Looking for 20 Year Term
250K Coverage, Standard Rating
$298.58
62 Years Old
EMPIRE LIFE
Olivia Looking for 20 Year Term
250K Coverage, Standard Rating
$ 199.58
So here we are! Prices continue to climb. Sure, 25 bucks (9%) if you are a male applicant like Doug, may not seem like a whole hell of a lot...
...BUT after 20 years you're talking about $6,000 more over the life of your policy.
If you had just purchased your coverage one year prior you would have saved a bomb. Now the value of birthdays is becoming clear!
63 Years Old
EMPIRE LIFE
Doug Looking for 20 Year Term
250K Coverage, Standard Rating
$324.45
63 Years Old
EMPIRE LIFE
Olivia Looking for 20 Year Term
250K Coverage, Standard Rating
$ 217.35
Boom, the rates continue to steadily rise: 27% over 3 years! Had Olivia chosen to buy her 20 year term at age 60 she would have paid $12,040 LESS, over the life of her policy. Now, that's money that could have been rolled into an RRSP or some other investment vehicle.
64 Years Old
EMPIRE LIFE
Doug Looking for 20 Year Term
250K Coverage, Standard Rating
$352.35
64 Years Old
EMPIRE LIFE
Olivia Looking for 20 Year Term
250K Coverage, Standard Rating
$ 236.70
Another increase...do ya see a pattern? Doug pays a staggering $24,568 more than if he had purchased coverage at age 60.
Wow!
These numbers really speak for themselves. You can see that life insurance companies view you as a higher risk year after year.
65 Years Old
EMPI1RE LIFE
Doug Looking for 20 Year Term
250K Coverage, Standard Rating
$383.18
65 Years Old
EMPIRE LIFE
Olivia Looking for 20 Year Term
250K Coverage, Stand1ard Rating
$ 257.85
Congratulations! You've reached the standard age to begin receiving your retirement pension. However, chances are if you're like most seniors today, you'll work well past 65 by choice or more likely, by necessity.
Odds are many of you will live well into your 90's.
Ok, you might want to sit down for this, drum roll please...
...male or female, you're now paying 53% more for your life insurance than if you'd applied at age 60! In dollars that works out to $31,968.00 more for Doug and $21,760.80 more for Olivia.
There is another reason this is a VERY important birthday! Yes, most life insurance companies cease to offer 20 year term beyond age 65. This is sensible if you think about it. Doug & Olivia will both be 85 years old at the end of the term. This means there is a much higher chance of a claim being paid.
The Best Life Insurance for Seniors Over 65!
Ding, Ding, Ding! Important Birthday
Most Life Insurance Companies WON'T Offer 20 Year Term After 65
*Industrial Alliance & Assumption Life are EXCEPTIONS
Happy Birthday! Term Life Insurance For Senior Citizens: Facts
* Your cost of life insurance rises steadily by 9% year over year starting at age 60 and continues on this trajectory! It's doesn't slow down people.
* Female seniors, pay 50% LESS on average than men for the same life insurance coverage!
* Industrial Alliance isn't the only carrier with term 20 past age 65. Assumption Life Insurance has a No Medical 20 year Term product available beyond 65....$250k costs a 66 year-old-male $745.20 per month and a female $479.03 per month.
For the purposes of this article the remaining 20 year term quotes come from Industrial Alliance (IA)
66 Years Old
Industrial Alliance
Doug Looking for 20 Year Term
250K Coverage, Standard Rating
$419.63
66 Years Old
Industrial Alliance
Olivia Looking for 20 Year Term
250K Coverage, Standard Rating
$ 281.03
Welcome to the best life insurance for seniors over 65! Your early 60’s are now in the rearview mirror and your 70’s are fast approaching. It’s a cliche but it’s true: time flies!
You now pay 68% more for your life insurance than if you started at age 60. Too expensive? You’re independent life insurance agent might recommend reducing your term length to lower your premiums opting for $250k of term 10 or 15 instead.
For Doug that would cost $231.75 or $344.93 per month respectively.
Or maybe you should ditch term life insurance altogether and opt for a permanent policy. More on that soon.
67 Years Old
Industrial Alliance
Doug Looking for 20 Year Term
250K Coverage, Standard Rating
$458.78
67 Years Old
Industrial Alliance
Olivia Looking for 20 Year Term
250K Coverage, Standard Rating
$ 305.55
Tick tock, tick tock...steady like a clock, prices continue to climb. If you're a female, your monthly rate just went past the $300 mark. Even If Olivia bought life insurance at 64, she would have saved $16,524.00.
68 Years Old
Industrial Alliance
Doug Looking for 20 Year Term
250K Coverage, Standard Rating
$501.53
68 Years Old
Industrial Alliance
Olivia Looking for 20 Year Term
250K Coverage, Standard Rating
$ 332.10
As you can see, the best life insurance for senior citizens may or may not be term at this point. You spend a LOT more money year over year.
If Doug waits until he's 68, he pay $19,656.00 more for the same coverage he could have bought at age 66.
But get his! Now, he's paying double the amount (100% more) than if he'd started at age 60! That's $6,018 per year vs $2,999 per year!
So I am going to propose an alternative to save him some cash. He could opt for a shorter term and lower coverage to make this more financially palatable. Maybe $200,000 of protection for a 10 year term? This will cost $234 per month and cover Doug 'til he's 78!
*NOTE: We're getting into Permanent Life insurance territory. Instead of paying $500 per month for 20 years of term, Doug could get $91,234 of paid up whole life insurance with Empire instead.
This will give him guaranteed cash value of $73,108. That means at age 88, Doug stops paying premiums and he has $91,000 of paid up insurance, guaranteed for life. He can also cancel this insurance and get $73,000 of cash value refunded by the insurance company.
69 Years Old
Industrial Alliance
Doug Looking for 20 Year Term
250K Coverage, Standard Rating
$548.55
69 Years Old
Industrial Alliance
Olivia Looking for 20 Year Term
250K Coverage, Standard Rating
$ 361.13
Ouch! Ok it's your last year to buy life insurance in your 60's.
I would like to draw your attention to the difference between men and women. Doug pays a whopping $71,656 more for the same life insurance had he applied at age 60.
Over the life of his policy at age 69, he pays $44,980.80 more than Olivia!
Men really do get the short end of the stick here! Percentage-wise, things look a little more balanced. Olivia pays 116% more for 20 year term than if she'd started when she was 60. Doug pay 119% more.
The Best Life Insurance for Senior Citizens in Their 60's
If you are looking for the best life insurance for senior citizens I think these numbers are VERY compelling. You can clearly see that term life insurance for senior citizens is not cheap.
Hey don’t get me wrong, I think it’s a great deal for what you get. The protection offered isn’t that costly considering the fact that your family is protected if you die unexpectedly into your 80’s if you select a 20 year term.
The thing is, term life insurance is a very specific product.
It’s temporary coverage that is meant to provide you and your family with a safety net for a limited time when you need it the most. That’s why it’s so affordable.
The insurers know that the numbers are on their side. Especially when you’re young.
When clients come to see me, I urge them to buy life insurance when they are young and healthy and cover themselves for as long as possible.
If a 38 year old purchases 30 year term they are covered until they are 68 for very little money. It really is a great deal. To be frank this is the time when you typically need coverage the most.
The Best Life Insurance for Senior Citizens Over 65! Your Needs Change as You Grow Older
As you grow older your life insurance requirements change.
Let’s say you’re 61 years old and you and your wife had a baby when you were 55. Your needs are very similar to the 38-year-old because you have a young family that depends on you.
However, you’re going to pay quite a bit more just by merit of your age. But what option do you have? In your situation term is still the best solution and more affordable than permanent insurance.
This isn’t the same scenario for everyone in their 60’s though.
The question what is the best life insurance for senior citizens changes as you grow older. Term is less appropriate at this stage in your life.
Let’s say you are 65 and come into my office as a grandparent. It’s likely you’re more concerned about final expenses and the tax burden that may be left to your beneficiaries.
In that case, I do NOT recommend term life insurance. I’ll steer you toward a permanent product because it covers you until the day you die and the cost is not that different from term insurance.
The Best Life Insurance for Senior Citizens
Are Permanent Life Insurance Solutions the Way to Go?
The truth is Term Life insurance works for most people most of the time.
But there are exceptions and getting life insurance in place later in life is one of them. If you are looking for the Best Life Insurance for Senior Citizens permanent insurance works very well…
…especially for people looking to cover final expenses. They need lower face values and coverage until the day they die.
Final expense insurance is affordable and easy peasy to apply for. I wrote an article about it and you can check it out here.
You can also get no exam life insurance if you want to avoid the hassle of a medical exam and need quick coverage.
There are some excellent providers out there that are surprisingly affordable. Using automation, artificial intelligence (AI) and data farming, Guaranteed-Issue carriers are narrowing the gap when it comes to pricing.
It may not be long before the lines between traditional underwritten and non-medical life insurance are blurred completely.
Surprisingly some clients may get a better deal from a no exam life insurance company than they get if they’re rated by a traditional underwriter.
When You SHOULD Opt for Permanent Life Insurance if You Are Looking the Best Life Insurance for Senior Citizens Over 60!
The Best Life Insurance for Senior Citizens: You Don't Need a Lot of Coverage
The dream is when you age your need for life insurance decreases!
But this is not always the case, in fact, people are living longer than ever so they’re able to have children and change careers later in life.
Your parents may have headed for retirement at 60, but you may only just be starting out. If you have a business, debt, a mortgage or dependents your life insurance coverage needs may be hefty.
But if you’re one of the lucky ones and you’re on track for retirement – maybe you ONLY need to cover funeral expenses.
The Best Life Insurance for Senior Citizens: The Only Thing You're Concerned About Are Funeral Costs
Which brings me to burial coverage insurance.
There are some great options out there that don’t require a medical exam and to top it off they are super affordable. If you don’t want to leave your family to foot the bill, which can be hefty! I highly suggest this option.
The Best Life Insurance for Senior Citizens: Coverage 'Til You Die
Term life insurance for senior citizens likely will NOT cover you until the day you die…
…or at least this is what your life insurance company is betting on. Hey living to the end of your term is a win-win.
You were covered and survived. That being said, there are a lot of people who really want to leave something when they go. If this is you a permanent option is your best bet.
The Best Life Insurance for Senior Citizens: Reduce Your Estate Tax Burden
If your estate is bountiful then the government wants to get their hands on it.
In order to reduce this burden affluent people use life insurance as an estate planning tool to maintain the value of their estate while leaving money to their beneficiaries.
Basically, they buy a permanent life insurance policy designed to pay all their estate taxes when they pass away.
This makes it possible to leave the bulk of their hard earned wealth to their loved ones. This strategy is known as an Insured Retirement Plan (IRP).
You can read about it in my cash value life insurance article.
There are a number of permanent options to choose from. They are complicated and if you decide to go this route it's a good idea to speak to an independent life insurance agent like Policy Architects.
We can help you wade through all the details to make sure you select the right type of permanent insurance for you. Here's a quick synopsis of your 3 options:
Whole Life Insurance
Whole Life is the original permanent life insurance. Like all permanent products, the insurance company calculates your premiums based on lifelong coverage. A death benefit will be paid out. That's why Whole life is much more expensive thanTerm.
Whole Life Insurance Cash Value
Typically, in the earlier years of a whole life policy, your insurance costs less than the premiums they're collecting from you. This overpayment builds up guaranteed cash value in the policy over time (after you pay admin costs and the commission). This cash can be used for a number of things including:
- Paying for additional insurance to add to your original death benefit or coverage amount
- Allowing the cash to accumulate and grow by leaving the money in the policy
- Taking a "premium holiday" or reducing your premium annually
- A refund or "cash surrender" if you decide to cancel the policy later
Whole life is commonly used for estate planning purposes beyond just burial coverage insurance. It can be designed to grow in value as your wealth grows. Therefore, when the tax man cometh, there is enough money from the tax-free death benefit to pay him. This means the bulk of your estate is left to your heirs.
Guaranteed Acceptance Whole Life Insurance for Seniors
Most Non medical life insurance is guaranteed-issue whole life. It's a popular choice for quick, affordable burial insurance for seniors.
If you're in poor health or are a smoker this is a good bet, plus you can get face amounts as low as $5000. I use this tool often for people who are in their 60's who fear being declined or seriously rated. One well known guaranteed-issue carrier is Canada Protection Plan.
Term to 100
Term to 100 is confusing because its name contains the word "term" but make no mistake, Term to 100 is a form of permanent life insurance.
It's the easiest type to understand. You pay a fixed premium for a level amount of insurance over your lifetime. This means your monthly cost and the death benefit NEVER change.
You pay your premium 'til death or age 100, whichever comes first. With Term to 100 all you're paying for is the pure cost of insurance. Typically these policies have no cash value.
Term to 100 is ideal if you're looking for low cost life insurance plans that offer you lifetime protection for needs such as creating an estate or burial coverage insurance.
Universal Life Insurance
Similar to Whole life, the monthly premiums you pay into your Universal life policy, above and beyond the cost of insurance, are placed into a cash value account.
The difference being, you decide how these overpayments are invested. Choosing from a wide range of index funds linked to the performance of treasury bills, GICs, equities, bonds, or money markets. The idea is to build up cash value over time that can eventually be used for any number of things including:
- Growth of investments tax-free for estate planning purposes
- Tax-free income for retirement (Leveraging)
- Living Benefits - if you sustain a disability, critical illness or require long-term care.
The monthly premiums and death benefit may be adjusted by you over time as your needs change. We call this Variable Universal Life Insurance and as such, the cash values are not guaranteed.
When you opt to pay the minimum premium (the basic cost of insurance) over the life of the policy, this is known as:
Guaranteed Universal Life Insurance
With these types of policies, benefits are guaranteed and they are often slightly cheaper than their Whole Life Equivalent.
What are the benefits of Universal Life Insurance?
It is an extremely flexible product best suited for more affluent individuals or businesses that have long-term investment, estate planning and legacy needs. This isn't a product I'd necessarily recommend for everyone but it definitely has its niche.
One of the problems with universal life insurance is that it's complicated. Read more about it in my article here.
I definitely use Universal Life products for my older clients who are looking at higher premiums anyway. It's a good way to make sure they are covered for life and doesn't cost that much more than term.
The Best Life Insurance for Senior Citizens Over 60
Is Often Used to Cover:
1.
Funeral Expenses
Did you know the average funeral cost in Canada is $10,000 – $15,000? Sheesh! I think a lot of people are completely unaware of this.
Sadly ignorance is no excuse and your beneficiaries will be left to foot the bill.
This isn’t something you want to leave undone. Do your family a favour and think about purchasing some burial coverage insurance. It’s affordable and solves this issue.
2.
Taxes Associated with Death & Inheritance
Taxes never stop and your death is no exception.
I think it’s very important for you to review your personal situation with an advisor to find out how big the impact is.
If you want your kids to inherit your cottage – you have to think about the tax implications beforehand. A life insurance policy covers these expenses so your children or grandchildren don’t have to.
3.
Business Losses & Key People
If you’re in business chances are people depend on your input.
What if you don’t show up for work one day? What would happen to your enterprise? Taking out a life insurance policy to protect your business from financial devastation is something you should consider.
4.
Children & Grandchildren
Maybe you want to leave a gift for your grandchildren but have decided to hand over the bulk of your estate to your kids.
A life insurance policy helps you to give your grandchildren a posthumous gift. It’s a wonderful planning tool and the best part is the proceeds are not taxable.
5.
Estate Taxes
I have a lot of clients who are thinking about estate planning.
Life insurance is a wonderful way to offset taxes and protect your assets. If you happen to have an estate and have exhausted traditional tax-saving vehicles, life insurance is extraordinarily useful.
6.
Loss of Income
This is the most common reason people buy life insurance. If you’re the breadwinner and have dependents life insurance is the best way you can protect them if you die prematurely.
7.
Remaining Debt
You may die but your debt lives on. If you have a mortgage or credit card debt you don’t want to leave your beneficiaries to clean up the mess.
Life insurance assures that there is money in the bank to take care of this!
8.
Collateral for Loans
People are living longer and launching second and third careers – marrying and divorcing and doing a whole lot more later in life.
If you need a loan, a life insurance policy provides collateral. Banks like some assurance that you are able to pay your debt no matter what.
9.
A Disabled Child
If you have a child that requires care after your demise, a life insurance policy provides protection. With a little planning, you can tie up all those loose ends before you check out.
10.
Gift for Charity
Leave money to charity and reduce the tax burden on your estate, through a life insurance policy.
This is a particularly good tool for those of you who have excess cash you need to dispose of before you pass away.
The idea is to live rich and die paying as little tax as possible. It’s an estate planning tactic for those with wealth.
11.
Equitable Distribution of Your Estate
Let’s say you have a business and only one of your children will inherit it because they are the only one that showed any interest.
This seems unfair because it’s the bulk of the value of your estate!
Well, people in this situation often use life insurance to balance out disbursements. A policy of equal value can be taken out and left to the child or children who will not inherit the business. Win, win!
12.
Divorce Agreement
Many Divorce agreements stipulate that one or both parties take out a life insurance policy to protect the ex-spouse.
13.
Emergency Funds
If you have a permanent policy, insurance companies typically let you borrow up to 90% of the cash surrender value (CSV) in the form of a loan.
Since loans don’t count as income, you’re not required to pay income tax on the money.
It can also be capitalized such that all you pay are the interest charges and when you pass away, the policy proceeds wipe out the loan.
Any cash leftover bypasses probate and flows directly to your beneficiaries tax-free.
This is a great tool if you need money for an unexpected emergency or to top up your retirement income without paying extra tax.
“Taking out a life insurance policy is not as common, but is actually one of the best ways to leave a charitable legacy. Using an insurance policy with the charity as a beneficiary can be a quadruple benefit if you qualify. The first benefit is that if it is structured properly, the annual insurance premiums can be considered annual charitable giving, so that you get the tax benefit each year.”
Leaving Money to Charity in Your Will? There’s a Better Way, The Financial Post
.
The Best Life Insurance for Senior Citizens is a Complicated Topic
Call Policy Architects Today
The best life insurance for senior citizens is one of those topics that is best discussed with an independent agent, like those at Policy Architects.
Getting the best possible policy from an insurer that caters to your specific needs is key.
As you get older, more medical issues tend to crop up. That’s why term life insurance for senior citizens is more costly.
You need a seasoned agent that knows the ins and outs of the underwriting processes so that you sign on with the right company for YOU.
Term life insurance for seniors in Canada is a valid option but it may not be the best one.
As I mentioned there are some great permanent options that may be a better fit.
What Suits You in Your 50's Doesn't Necessarily do You Justice in Your 60's
That’s why you need to contact us at Policy Architects BEFORE you sign on the dotted line. We go through a needs analysis to find out just how much coverage you need and how long you need it for.
Another perk? We also feel out the life insurance companies to see which ones may view you more favourably. Sometimes choosing a no exam policy is less expensive than opting for one with traditional underwriting.
There are so many great choices out there!
If you want to save money time and hassle and you are looking for term life insurance for senior citizens call Policy Architects right now.
