How much is life insurance for retirees?

Being retired is great! You have more time for hobbies and family, but you may also be thinking: What happens if I'm gone tomorrow?

If you do not have life insurance coverage, this is the time to get it - rates are at all time lows, and you don't want to wait until it is too late.

Being a senior in your sixties or seventies, you may think it's no longer possible to get life insurance, or even get affordable rates - this is not true. You may still be able to get coverage with good rates, depending on your health and medical history.

Typical life insurance amounts for retired persons:

Here are some key things to look for when purchasing life insurance in retirement:

  • Term vs. whole life insurance - Term life insurance provides coverage for a set period of time, while whole life provides lifelong coverage. Term policies tend to be more affordable for retirees on fixed incomes.

  • Policy length - Many experts recommend a 10 or 20 year term policy for retirees to cover funeral costs and final expenses. Longer 30-year terms may be unnecessary.

  • Premium costs - Lock in rates now before getting older and higher risk. Choose a policy fit for a retirement budget.

  • Cash value options - Some whole life policies accrue cash value that can be borrowed against in retirement. This can supplement income if needed.

  • Living benefits - Some life insurance includes accelerated death benefits that pay out if diagnosed with a terminal illness while still living. This provides funds for medical costs.

  • Easy underwriting - Simplified issue policies with reduced health screening are easier to qualify for. No medical exam required.

  • Inflation protection - Get a rider to increase the death benefit amount over time keeping pace with inflation. This prevents being underinsured.

The key is working with an independent agent experienced in senior products. They can explain all policy options and find the right coverage fit for your retirement needs and budget.

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Life Insurance Gets More Expensive As You Age

As you progressively age, life insurance does become more expensive. Nevertheless, there are insurance carriers who provide competitive rates. Further, if you are in good health, the cost of life insurance drops further. Online quote providers make purchasing a policy not only easy but far more affordable than ever it was. It’s advisable to look for BBB – accredited sites that offer to provide quotes from only reputable companies. With multiple quotes you can be assured of getting the most suitable and most affordable insurance cover.

Life spans are growing, and there’s a good chance that you and your spouse will live to a very healthy age. Therefore, you may need to make your savings last longer than you originally planned. One way to do that without worrying about a potential shortfall is to invest in a life insurance policy. It could be the perfect solution in the circumstances!

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Payment of Estate Taxes

The payment of estate taxes is one of the main reasons why retirees take out a life insurance policy. Particularly where large estates are concerned, if you have a life insurance policy in effect, it can save your spouse from having to liquidate any part of the estate in order to pay for taxes.

Payment of Funeral Expenses

Generally and for most people of retirement age, life insurance requirements tend to be very small. Debts have been paid off and the children are now independent and can stand on their own.

Thus, perhaps the main concern is to pay for funeral expenses and alleviate this burden on any of your loved ones - they are probably wondering if they can take out a life insurance policy on you to help pay these final expenses. Usually a policy between $10K to $50K is plenty to cover all burial and funeral costs.

Cash Sum For a Spouse

Unfortunately, not every retiree will be fully free of debt. You may still have some years left to pay on a mortgage, or you could have some health issues to deal with. Perhaps your retirement money has dwindled in the economic crisis. With a life insurance policy, your spouse can be free of financial burdens upon your death.

Beneficiary For Your Children

You may wish to consider leaving a beneficiary amount for your children or grandchildren with the proceeds from your death benefits.

Click Here For Retiree Life Insurance Rates!

Shown: Average monthly insurance rates for a 10-year term policy for a retired woman over 65 (non-smoker, average health).

AGE $25,000 $50,000 $100,000 $200,000 $300,000 $500,000
65 year old woman $36.99 $41.94 $38.52 $67.06 $81.46 $149.85
66 year old female $39.92 $43.87 $43.70 $74.01 $88.18 $163.57
67 year old woman $45.44 $46.89 $48.48 $81.45 $93.67 $179.72
68 year old female $49.71 $50.63 $54.05 $88.26 $101.47 $195.63
69 year old woman $54.12 $55.90 $58.83 $97.15 $112.12 $223.45
70 year old female $58.13 $60.90 $69.31 $108.19 $130.02 $249.11
71 year old woman $65.67 $65.17 $76.05 $120.02 $153.22 $275.76
72 year old female $73.66 $69.22 $86.34 $134.32 $177.85 $309.29
73 year old woman $81.74 $76.27 $96.52 $153.58 $200.89 $358.07
74 year old female $89.70 $84.45 $108.80 $173.28 $227.07 $403.94
75 year old woman $97.55 $93.15 $116.84 $196.70 $258.24 $459.87

Average male senior rates as off 05/12/2024 - your average monthly premiums will most likely be different.

Retired Life Insurance Rates!

Life Insurance As An Investment Vehicle

Because of the past economic downturn many people have suffered a sizeable loss to their retirement savings. In an effort to rebuild their investments, most now prefer to utilize conservative savings vehicles which offer a high level of protection against any future instability in the market.

For those who are approaching the age of retirement however, it’s not quite so easy. After all, they have less time to make up the losses. Nevertheless, life insurance can be helpful.

An often asked question is "Do you need life insurance after retiring?" Companies do tend to provide at least a basic insurance for employees who reach the age of retirement, but is it enough? The answer is personal to each individual. Some may need to purchase a life insurance policy on retirement, where others may not.