It’s never too late to sign up for life insurance. Your options may become more limited and your premiums may climb higher with the longer you put it oﬀ, but there is almost always an opportunity for financial protection, even at an older age.
Life insurance approval and rates are often dependent on age and health, typically placing older applicants at an immediate disadvantage. Seniors still have several options for life insurance coverage, however, which are summarized below.
Guaranteed issue life insurance may be the optimal — and sometimes the only — option for some seniors. This type of insurance does not require an applicant to undergo a medical exam or even answer any questions about their health. Everyone who meets the age requirements will be approved for coverage and will be able to maintain that coverage for as long as they stay current with their premium payments.
The ease of approval and lack of underwriting makes guaranteed issue life insurance ideal for seniors who may be charged higher rates for other types of policies because of their age or health.
Term life insurance remains a viable option for many seniors. It’s generally more aﬀordable than permanent life insurance, and the duration of coverage can be tailored according to the applicant’s age and needs. Because age is a factor in determining rates for term life insurance, older adults may expect to pay a little more. But if they are healthy and perform well in the underwriting process, seniors may still be able to secure a competitive rate.
Instead of signing up for a multi-year commitment, annual renewable term life insurance allows you to purchase a policy that expires and renews again every year. The premiums will generally increase with each renewal, but the advantage is that you’re only paying for your current risk. This type of life insurance can be good for a senior who may not need long-term coverage or who wishes to reevaluate their needs on a year-by-year basis.
Whole life insurance premiums for older applicants will typically be high, so they may not always be the most fitting option for a senior looking to acquire a new life insurance policy. Seniors who have a term life policy that is convertible to whole life may wish to exercise that option. Whole (or permanent) life insurance remains in place no matter how long you live, and it can even accumulate a cash value that can be borrowed against. This type of life insurance may be good for seniors who wish to minimize their estate taxes or leave an inheritance to a grandchild or charity.
No matter your age, leveraging the help of an AIG-appointed life insurance agent can help you better explore all of your coverage options, compare quotes from available plans in your area and tailor a protection plan that’s built for your needs.
Call us today at 1-855-382-3599 to get started.
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), Policy Forms: ICC15-15532, 15532, 15532-5, 15532- 10. Rider Numbers: ICC15-15200, ICC15-15201, 15200, 15200-10, 15200-35, 15201, 15201-9, 15201-10, 15201-35, ICC16- 16901, 16901, ICC16-16900 and 16900 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. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. ©2018. All rights reserved.
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