Best Life Insurance For Retirees


Banner Life Insurance Company

What is the Best LIRP – Life Insurance Retirement Plan?

Having come in as a top 5 carrier on our overall list, Banner Life Insurance Company has two distinct advantages for seniors:

  • risk underwriting.

Those with serious health concerns may get a little help in the lower tables from Banner.

Banner has made an impact on the life insurance market in the past few years for its term life options, but few know how good a fit they are for seniors with their universal products and more liberal underwriting style.

Their strong financial status and excellent use of independent agents makes them a great selection.

Seniors cant use Banners no exam products because of age, but their Step Up UL® is a great choice for anyone looking for competitively priced permanent products.

If health is an issue, you will definitely want to look at Banner as they are consistently one of the best-priced carriers for seniors with medical conditions who can only qualify for Sub-Standard rates.

Final Thoughts On Life Insurance For Seniors

Every household has unique financial priorities, which is why there are so many different life insurance options for seniors. Choosing the right type of policy for your goals and choosing the best life insurance provider are important steps toward providing for your family and avoiding additional hardship.

Consumers are encouraged to research their options and to avoid making decisions based on price alone. Although they may serve similar goals, not all life insurance policies are created equal. Life insurance is one area where it pays to invest some time speaking with agents to learn your options so you can make a better-educated purchasing decision.

Our Top Picks For Best Life Insurance Companies

Why we chose it: Bestow issues term life insurance more quickly and easily than most companies, and it offers an unusually high death benefit for policies that do not require a medical examination.

  • High coverage without a medical exam
  • Online application and quick processing
  • Terms range from 10 to 30 years
  • Long free look period
  • Sells only one type of life insurance, term insurance
  • Must be less than 60 to qualify for coverage
  • Policies not available to residents of New York

Bestow is our choice for individuals who want to get life insurance coverage but dont want to go through the hassle of a medical exam. The company sells term insurance policies , so you can apply online and purchase a policy without visiting a doctor or having tests such as bloodwork done. You can get up to $1.5 million in coverage, a higher maximum than other no-exam policies.

The company uses your personal information and your answers about your medical history, hobbies and lifestyle to determine your eligibility for life insurance and your rates. Bestow claims you can get a quote and purchase a policy within minutes, all online.

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How Does Life Insurance Work

Policyholders pay premiums for a life insurance policy. If the policy is in effect when the person dies, the life insurance company pays a death benefit to beneficiaries. Death benefits are typically tax-free.

Beneficiaries can use the money in any way they want, so its a good idea for policyholders to choose trusted beneficiaries.

Life Insurance Considerations By Age For Seniors

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Depending on your age, your coverage needs may be different. MoneyGeek analyzed the following policy options according to your age.

Compare Life Insurance Rates

Ensure youre getting the best rate for your life insurance. Compare quotes from top providers to find the most affordable life insurance coverage for your needs.

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Best Life Insurance Policies For Senior Citizens

Depending on your age and health, you may have fewer options for life insurance as a senior. If youre below 70 and in good health, there arent any significant restrictions. You may just have to broaden your search to a wider set of companies, as some insurers will restrict the age group that can purchase a particular product.

If youre below 80 or fairly healthy, you should be able to qualify for term or guaranteed universal life insurance policies that offer low rates for the elderly. However, if you have certain pre-existing medical conditions, guaranteed whole life insurance may be your best option for coverage.

No matter your age, you should still evaluate life insurance policies according to your goals and your familys financial needs, as these are critical to determining your best coverage.

Who Is A Senior Citizen In The United States

According to the U.S. government, an individual 65 years of age or older is considered a senior. This classification is tied to the age eligibility requirements of government programs such as Social Security and Medicare. With that said you also can start drawing on your social security payments at age 62, and you can begin to withdrawal from your IRA at age 59 ½ without penalty.

So, 65 is the standard but there are variants. For instance, restaurants, amusement parks, and movie theaters offer senior discounts to those who are 50 years or older. And, the coveted AARP membership becomes available when you turn 50. Businesses are reaching out to Americas growing senior population and that includes insurance companies.

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Expected Costs Over 50

When you reach age 50, you can expect to pay for life insurance. Youre more likely to pass on, and your health is also more likely to begin declining. As a result, you might end up paying more for life insurance. In many cases, you can expect to pay anywhere between $40 and $75 per month for a $500,000 policy with a 10-year term. Longer terms or higher coverage amounts come with higher premiums.

Your age, health, and other factors will determine how much you pay in premiums. But, in general, you can expect to pay more than your younger counterparts.

How Do I Get Health Insurance When I Retire

Affordable Life Insurance for Retirees

When you retire, you have multiple options for health insurance:

  • Medicare: When you turn 65, you are eligible for Medicare, an insurance program operated by the federal government.
  • COBRA: When you leave your job, you have the option of extending your employer-offered health benefits through the Consolidated Omnibus Budget Reconciliation Act . With COBRA, you can continue your coverage for 18 to 36 months.
  • Health Insurance Marketplace: You can purchase private insurance under the Affordable Care Act on
  • Short-term coverage: Private insurance companies often sell short-term coverage, which is a form of temporary insurance you can use to bridge the gap until other coverage goes into effect.

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Factors That Affects The Cost Of Life Insurance

The older you are, the higher the cost of life insurance coverage. That’s why life insurance professionals often encourage people to take out policies in their twenties and thirties. However, if you are in your 50s, there may still be time to get coverage. You just need to be prepared to pay more for coverage and understand that some types of policies may no longer be available to you. Here are some of the main factors that contribute to policy cost:

Your age: Life expectancy has an understandable impact on how much life insurance costs, which is why premiums can go up significantly for applicants over age 50. Life insurance companies have a greater risk of payout as you age conversely, when you buy at a younger age, even permanent life insurance policies with a guaranteed payout cost less because you have a longer time to pay into the policy.

Your health: Younger people, in general, are healthier. As people age, health tends to deteriorate, which puts the life insurance company more at risk of having to pay out on your policy. Smoking and other risky behaviors also impact the cost of life insurance.

Life Insurance Riders For Seniors

A life insurance rider is an optional feature that you can purchase to add to a policy. This customization can provide different types of protection. Several riders may be of special benefit later in life, including2:

  • Guaranteed insurability rider: This rider makes it possible to purchase additional coverage within a pre-determined time period without taking another medical exam. This could be especially helpful if your health declines with age.
  • Waiver of premium rider: With this rider, future premiums are waived if the insured becomes disabled.
  • Accelerated death benefit rider: This rider makes it possible for the insured to use the death benefits if he or she is diagnosed with a terminal illness that results in a lifespan that is significantly shortened as a result.
  • Long-term care rider: This rider provides the ability to access the death benefit early to help pay for long-term-care-related expenses. Learn more about long-term care insurance.

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What Is Life Insurance For Veterans

Life insurance provides payment in the form of a death benefit to your beneficiary if you die and permanent policies may be also used as an investment or savings tool. Life insurance rates increase as you get older, and vary depending on your health and other criteria. When you leave the military, you may have health conditions or disabilities due to your time in service or injuries acquired in combat. These conditions can make it hard to find good life insurance at a good price.

Fortunately, as a veteran, you have many choices for life insurance:

  • Continue your plan with the VA
  • Find private insurance

What Is A Lirp

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A life insurance retirement plan is a permanent life insurance policy that uses the cash value component to help fund retirement. LIRPs mimic the tax benefits of a Roth IRA, meaning you dont pay taxes on any withdrawals after you are 59½ years old and cash gains are tax-deferred. Any permanent life insurance policy with a cash value, such as whole life insurance, can help fund retirement. Term life insurance does not have a cash value and cannot be used for a life insurance retirement plan.

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No Medical Exam Life Insurance For Seniors

Some people feel that because of their age or health they will not be approved for senior life insurance. But enhancements in insurance underwriting and the availability of specialty insurers who focus on covering those with higher risks means life insurance is available to almost everyone.

Once youve found a company and policy that meets your needs, you will be asked to fill out an application. To be approved for coverage, youll need to provide some personal information about yourself, such as your age, your height and weight, any health conditions you have, and any life insurance you already have. For some insurers, you may be asked to complete a medical exam to qualify.

For smaller policies, some companies offer life insurance without a medical exam. Final expense insurance for seniors is usually issued based on answers to health questions on the application. Its important to answer all questions honestly when filling out your application so your coverage can be issued accurately. Misrepresenting the truth can result in your policy being canceled or death benefits being denied if incorrect information was provided.

Guaranteed issue life insurance plans also exist, but these are often very expensive and may not fit most budgets.

Figure Out If You Want Life Insurance Riders

Life insurance companies generally let you add extra coverage to your policy through life insurance riders. These riders can include benefits you can use while youre alive, such as accelerated death benefits, long-term care, term life conversion and waiver of premium if you become disabled.

Adding a rider may increase the cost of life insurance. If youre interested in expanding coverage through a life insurance rider, ask your life insurance agent to explain the options.

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Insist That Cost Disclosures For Universal Life Insurance Be Included In Any Proposals

A life insurance quote reflects what youll be billed for, but it doesnt tell you anything about a policys internal costs, such as expenses and fees, and the actual cost of insurance thats charged within the policy.

Be sure to insist that any universal life insurance illustration include the detailed expense pages or policy accounting pages. Products with a low premium quote could have higher internal costs, which can slow your cash value growth.

Life Insurance Living Benefits For Seniors

Indexed Universal Life Insurance Retirement Hack

Depending on the insurer, some life insurance policies either include “living benefits” or give you the option to add these through riders. Living benefits is how policy features are described that can offer financial assistance while youre still alive. Some of the most commonly offered living benefits are:

  • Accelerated death benefit
  • Accidental death and dismemberment
  • Waiver of premium

An accelerated death benefit rider simply gives you the option to receive a portion of the death benefit early if youre diagnosed with a qualifying illness. This option can be incredibly valuable as a senior if youre concerned about your ability to cover medical expenses that are common later in life. Just make sure the insurer will accelerate the death benefit for a variety of illnesses, and not just those that are terminal.

The amount of money youre able to receive as an accelerated death benefit will be capped as a percentage of the death benefit or dollar amount. This figure will be deducted from the death benefit your family receives when you pass away. So, if you had a $500,000 death benefit and your insurer capped the amount you could accelerate at “the lesser of $250,000 or 75% of the policys face value”, you could request up to $250,000 while still living.

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The Basics Of Term Life Insurance

The least expensive type of life insurance, considering not just out-of-pocket costs but also the amount of coverage you get for the money, is term life . It guarantees payment of a stated death benefit during a specified termsuch as 10, 20, or 30 yearsbut has no cash value component. When the term expires, the policyholder can either renew for another term, convert to permanent coverage, or allow the policy to terminate.

Life insurance prices vary depending on a person’s age, health, and other factors. For example, a nonsmoking 35-year-old man in good health might be able to get a 20-year term policy with a $1 million death benefit for $1,030 or so per year. If the same man bought a whole life policy, a type of permanent life insurance, the premium might be $13,500 or more annually for the same death benefit.

Given these costs, term life insurance can be a useful retirement savings tool in two ways. First, it provides the basic financial protection a family will need if one of the breadwinners dies before accumulating enough savings for the family to live on. Second, the relatively low price frees up more disposable income to use for other purposes.

Given the lower premiums associated with the policy, investors will have more to invest for retirement, college, or other financial goals,” says in Irvine, California, and author of Index Funds: The 12-Step Recovery Program for Active Investors.

Get Quotes From Multiple Companies

LessonCompare multiple quotes to save money

Life insurance companies often have different benchmarks for calculating risk, and therefore your premium. The higher the risk an insurance company considers you to be due to your age, health, where you live and your life history, the higher your premium is likely to be.

But, not all companies use the same risk calculations, so always get quotes from multiple life insurance companies before you buy a policy.

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Pros And Cons Of Buying Life Insurance As A Senior

The pros to buying life insurance as a senior are similar to buying life insurance at other stages of life youll have peace of mind knowing your financial obligations are covered and your loved ones wont struggle financially in your absence. Seniors likely need less coverage than younger adults who are just starting their families. On the other hand, life insurance premiums increase every year we age at the time of application, so its increasingly more expensive to buy life insurance the older you get.

How To Choose The Right Policy For Your Life Insurance Needs

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As you can see from the examples above, there is no single policy that is right for everyone. People have different coverage needs, different budgets, different health statuses, and different goals. There are specialized forms of coverage available, and in some situations, it may even make sense to get two policies:

If you still have children at home, you probably want a high level of protection but not high life insurance rates. So you may want to consider getting two policies a smaller permanent policy to cover your spouse’s needs for the rest of your life, plus a less-expensive term life insurance policy to provide extra coverage until your children finish school.

If your children are grown and out of your house, you may not need as much coverage, and you may not even be sure how long you need it. So consider getting a smaller term policy with a conversion rider that lets you convert to permanent coverage until the end of the policy term. That can help you save compared to the cost of getting permanent coverage when you are older because, with conversion, there are no medical exams or health questions – you pay rates based on your health status when you first took out the policy.

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