Rule of thumb: Most financial planners recommend an amount 10-15x your current income. Life insurance rates are influenced by a number of factors, but your health has the biggest impact on the final cost.
While whole life insurance is the most popular type of permanent coverage, guaranteed universal life insurance is typically the better option for seniors. The benefit of whole life insurance policies is that they build cash value over time, which is a fund that can be borrowed against or withdrawn.
Term coverage only protects you for a limited number of years, while whole life provides lifelong protection—if you can keep up with the premium payments. Whole life premiums can cost five to 15 times more than term policies with the same death benefit, so they may not be an option for budget-conscious consumers.
While you may think you have enough in savings, a serious illness or other financial setback can leave you unprepared to pay for final expenses. Life insurance for seniors can help pay for things like funeral expenses, medical debt, loss of income, and more.
AARP ranked ninth out of 21 companies in J.D. Power's 2021 U.S. Life Insurance Study for overall customer satisfaction.
Most life insurance policies have an upper age limit for applications. Many insurers stop taking life insurance applications from shoppers who are over 75 or 80, while some have much lower age limits and a few have higher limits.
If you retire and don't have issues paying bills or making ends meet you likely don't need life insurance. If you retire with debt or have children or a spouse that is dependent on you, keeping life insurance is a good idea. Life insurance can also be maintained during retirement to help pay for estate taxes.
You should also note that these policies are only available to AARP members (meaning you have to be at least 50 to qualify) and membership can cost between $12 to $16 per year, depending on your method of payment.
Just because you're older doesn't mean you can't find a life insurance policy that meets your needs. The cost of coverage can increase with age, but many insurers will accommodate older adults, even if they're not in the best of health.
The premiums can be expensive. The coverage may not be needed if the policyholder is young and healthy. Life insurance does not cover everything, and it may not be worth the investment. There are other ways to protect your family in the event of your death financially.
If you commit life insurance fraud on your insurance application and lie about any risky hobbies, medical conditions, travel plans, or your family health history, the insurance company can refuse to pay the death benefit.
Healthy men over 70 can expect to pay $122 to $435 for a ten-year term life insurance policy with a $200,000 death benefit. And healthy women will pay between $66 and $194 for the same policy.
If you're over 75, you might be wondering not only if you can get coverage, but also if you should get coverage. The answer to the first question is a definite “yes.” You can often buy life insurance well into your 80s, and many of your options will have minimal or no health requirements.
Fact #1: Social Security is more than just a retirement program. It also provides important life insurance and disability insurance protection.
Suze Orman's advice on when to buy life insurance is very straightforward. She believes that if "there is anyone in your life who relies on your income, you need life insurance."
In many cases (although not all) you won't need to keep term life insurance in retirement. This insurance is temporary and will expire at some point. But if you have a permanent life insurance policy, it can continue to provide you with important benefits through your retirement.
If you're single and have no dependents with enough money to cover your debts as well as the expenses related to death—your funeral, estate, attorney fees, and other expenses—then you may not need life insurance.
If you've listened to Dave Ramsey for more than five minutes, you've probably heard him say term life is the only life insurance policy you should get. We recommend you purchase a term life insurance policy worth 10–12 times your annual income. That way, your income will be replaced if something happens to you.
New York Life earned 4.5 stars out of 5 for overall performance. NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings.
AARP term life insurance rates increase every five years. If you sign up at 50 years old, your rates will increase when you turn 55.