Term life insurance rates typically tend to be higher for older applicants. There are a couple related reasons why this can be the case:
In fact, term life insurance rates can increase by up to 12 percent for each year of an applicant’s age over 50.¹
So what does this mean for older applicants? Are term life insurance rates simply unaﬀordable for most seniors?
Not necessarily. Age is just one of the factors that aﬀect term life insurance rates, and seniors may still be able to find a policy that works for their budget. Let’s break down the other variables that can aﬀect term life insurance rates for all people, especially older adults.
What affects term life insurance rates for seniors
Many seniors may also have retirement savings and investments in place, which means they may not need as much term life insurance coverage as a younger applicant.
Buying term life insurance as a senior
Age can be just one of the many factors that influence term life insurance rates. A senior who is in good health, does not smoke and does not need an excessively large amount of coverage may very likely be able to secure a term life insurance policy that’s aﬀordable for them.
Call 800-390-3019 to learn about term life insurance at AIG Life Insurers.
Guaranteed issue whole life insurance can be an additional option
If you’re an older adult who wants to avoid the medical underwriting process as part of your life insurance application, another option you can consider is guaranteed issue whole life insurance. This type of life insurance policy does not require any medical underwriting, and all applicants are guaranteed to be approved if they are within a specified age range. The person’s policy rate is based upon their age and gender.
Coverage is subject to receipt of payment and verification of identity as required by law and is eﬀective upon receipt of policy. Learn more by speaking to an AIG-appointed life insurance agent at 888-428-8870.
1How Age Aﬀects Life Insurance Rates, Investopedia, November 2016
2The Health Consequences of Smoking—50 Years of Progress. A Report of the Surgeon General
3NCHS, National Vital Statistics System, Mortality, December 2017
Agency services provided by AIG Direct Insurance Services, Inc. ("AIG Direct"), CA license # 0B57619 and AR license # 0100105378, a subsidiary of American General Life Insurance Company ("AGL"), Houston, TX and an affiliate of The United States Life Insurance Company in the City of New York ("US Life"), New York, NY, all members of American International Group ("AIG").
Policies issued by: American General Life Insurance Company (AGL), Houston, TX. Policy Form Numbers ICC16-16901, 16901, ICC16-16900,16900, ICC15-15532, 15532,15532-5, and 15532-10, except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life), Policy Form Numbers 16901N and 16900N. Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Products may not be available in all states and product features including rates may vary by state. Guarantees are backed by the claims-paying ability of the issuing insurance company. © 2018. All rights reserved.
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