Can You Buy Term Life Insurance After 65?

If you're over 65 and wondering, "Can you buy term life insurance after 65?", the good news is yes, you can.

Securing life insurance later in life is not only feasible but also comes with a variety of options tailored to senior needs.

The primary goal is to ease financial burdens for your loved ones, whether it’s covering final expenses, paying off debts, or leaving a financial legacy.

Given that around 18% of the U.S. population is aged 65 or older (U.S. Census Bureau), this topic is increasingly relevant.

Guide to Buying Term Life Insurance over Age 65

Quick Review

Yes, you can buy term life insurance after 65, although options may be more limited and premiums higher compared to younger ages.

Many insurance companies offer term life policies to seniors, typically up to age 70 or 75, with term lengths often ranging from 10 to 20 years. It's important to shop around and compare policies, as coverage terms and costs can vary significantly between providers.

Term Life Insurance Explained

First, let's clarify what term life insurance is. Term life insurance provides coverage for a specified period, generally 10, 15, 20, or 30 years.

If the policyholder passes away during this term, the beneficiary receives a death benefit. For seniors, common terms are typically shorter, given their stage in life.

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Age Limitations

When buying term life insurance over 65, one primary consideration is age limitations. Different insurers have their age caps. Some may allow you to purchase a policy up to age 80, while others may have a cutoff at 70 or 75. This varies widely by provider, so shopping around is crucial.

Cost of Coverage

Cost is another significant factor. As you age, premiums increase due to the higher risk of insuring older individuals. According to the Life Insurance Marketing and Research Association (LIMRA), premiums for seniors can be substantially higher, but they still provide valuable financial security.

It’s essential to compare term life insurance quotes from multiple insurers to find the most affordable yet comprehensive option.

Health Status

Health concerns also come into play. Many insurers require a medical exam, which can affect your eligibility and the cost of premiums.

Common health issues like diabetes, heart conditions, or other chronic illnesses might impact your options, but they don’t necessarily exclude you from securing coverage.

No Medical Exam Plans

For those worried about the medical exam, no-exam policies are available.

Simplified issue and guaranteed issue policies offer alternatives that don’t require a medical exam, although they come with higher premiums and lower coverage amounts. These options are designed to provide coverage for those with pre-existing conditions.

Simplified issue life insurance typically involves a health questionnaire instead of a full medical exam. It’s quicker to get approved and can be a viable option if you're in reasonably good health.

However, be prepared for higher premiums compared to policies requiring full medical underwriting. Get a FREE Quote.

Guaranteed Acceptance

Guaranteed issue life insurance is another no-exam option.

These policies are guaranteed acceptance regardless of your health status, making them an attractive choice for those with serious health issues. However, this convenience comes with higher premiums and typically lower death benefits. Get a FREE Quote.

Term Length – Duration of Coverage

When considering term lengths, seniors often choose terms that align with their financial planning goals.

A 10-year term might suffice for covering remaining debts or final expenses, whereas a 15-year term could provide longer security for a spouse or dependent.

Convertible Plans

Policy convertibility is another aspect worth noting.

Some term policies offer the option to convert to a whole life policy. This can be beneficial if you outlive the term and still need coverage.

Converting to whole life ensures lifelong coverage and can provide peace of mind.

Consider Your Budget

If you’re on a fixed income, budget-friendly policies are essential. Many seniors rely on retirement savings or Social Security, so affordable premiums are a must.

Comparing policies can help find a balance between cost and coverage, making sure you don’t overstretch your financial resources.

Compare Insurance Companies

It’s important to evaluate insurers based on their financial strength and customer service.

Organizations like the American Council of Life Insurers (ACLI) and the Insurance Information Institute (III) offer insights into various insurers’ reliability.

Look for high financial strength ratings from these institutions to ensure the insurer’s ability to pay out claims.

Examples of Life Insurance Coverage After 65

To illustrate, let’s consider John, a 68-year-old retiree. John wants to ensure his wife can cover funeral costs and any remaining mortgage debt if he passes. He opts for a 10-year term life insurance policy with a $100,000 death benefit, balancing a reasonable premium with necessary coverage.

Another example is Mary, aged 70, who has diabetes. She looks into a guaranteed issue whole life policy. Despite the higher premiums, she values the peace of mind from guaranteed acceptance and secures a $25,000 death benefit to cover final expenses.

Compare Rates

Comparing options is vital. Use online tools and quote comparison services to evaluate different insurers. Many of these platforms allow you to input your age, health status, and coverage needs to get tailored life insurance quotes, speeding up the decision-making process.

Consult a Professional Agent

As you gather quotes, consider consulting with a financial advisor. An advisor can provide personalized guidance and help you understand how term life insurance fits into your broader financial plan, ensuring you make the most informed choice.

Request FREE Quotes

Requesting a free quote is usually the first step. Most insurance companies offer online quote tools that can provide you with an estimate based on your age, health, and coverage needs. This can give you a baseline understanding of what to expect in terms of costs and options.

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Peace of Mind

As a final thought, securing term life insurance after 65 can significantly contribute to your peace of mind. Knowing that your loved ones are financially protected if you pass away can alleviate stress and allow you to focus on enjoying your retirement.

Summary

Can you buy term life insurance after 65? Absolutely.

While there are age and health considerations, a variety of options and insurers are available to meet your needs. By understanding your eligibility, comparing policies, and incorporating this into your financial planning, you can make an informed decision that safeguards your family's future.

Don’t wait until it's too late.

Start by requesting a free quote today. Explore your options, consult with professionals, and take control of your financial legacy.

Whether you choose a traditional term policy, a simplified issue, or a guaranteed issue plan, securing term life insurance over 65 is a step towards providing peace of mind and financial security for your loved ones

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