There are many companies that offer life insurance for seniors. However, across all companies, there are generally two limiting factors that will determine which policy an individual is eligible for. The first limiting factor is age, and the second limiting factor is health at the time of application.
The limiting factor of age typically does not disqualify an individual from coverage. It is simply used to determine the monthly premium of the policy the individual can apply for. A younger individual will typically be offered a lower premium and a higher face amount, whereas an older individual will typically be offered a higher premium and a lower face amount. Most companies have a general rule of not offering a policy after a certain age. The industry standard seems to be around 85 for level benefit plans up to $30,000 in coverage and limited to age 80 for seniors with major pre-existing conditions with face amounts up to $15,000.
The second limiting factor is an individual’s health at the time of application. Again, like age, this is not always a disqualifying factor, but it is used to help determine the type of coverage an individual is eligible for, as well as the monthly premium for that specific policy. The better the health of an individual at the time of application, the cheaper the policy, and the more coverage an individual will most likely be offered.
If a person has dealt with significant health complications, their best option would typically be a policy called guaranteed acceptance life insurance. This type of life insurance eliminates the health questions altogether and simply builds a policy price based on age, gender, and smoking status.
These policies will generally have what is known as a waiting period for two years or so. This means during the first two years of the policy, if something should happen to the individual, the policy would simply return all monthly premiums that have been paid in, plus interest. After that two-year period of time, the policy then becomes a full policy and pays the full death benefit.
So, with life insurance for seniors, there are various types of policies and various things that can contribute to the policy that’s right for you. We recommend that you speak with a licensed agent to help guide you through the process and assist in picking a company and policy that will give you everything you’re looking for.
If you would like to speak to one of our licensed agents, you can do so by calling us. We are licensed in most states and would be glad to assist with any questions or concerns that you might have.