Alternative Life Insurance Options for Seniors


Alternative Life Insurance Options for Seniors: Term life insurance options for seniors can be limited. You will likely struggle to find an insurer willing to give you a 20- or 30-year term life policy. If you’re having trouble finding a policy, here are some possible options.

Guaranteed issue of life insurance

A guaranteed issue life insurance policy doesn’t require a medical exam or any health-related questions. You’re guaranteed a policy. That makes these an option for someone who is older or is in poor health. One drawback to guaranteed life insurance is that it’s expensive. Another is that it usually provides low death benefit amounts, commonly between $10,000 and $25,000. But if you’re having trouble finding a policy, the guaranteed issue option might be right for you. Be aware that guaranteed issue life insurance usually has a graded death benefit. That means you must have the policy in place for at least two or three years before you die for beneficiaries to receive the full policy payout (unless the death is caused by an accident).

Simplified issue of life insurance

Simplified issue life insurance doesn’t require a medical exam, but you generally must answer a handful of health-related questions. These questions influence the insurance company’s decision on whether to insure you. Simplified issue policies cost more than standard fully underwritten policies, but they don’t require a medical exam, which means they can be a convenient way to get life insurance.


We analyzed cash value policies using data provided by Veralytic, an independent publisher of life insurance research and analytics. Veralytic maintains a database of thousands of life insurance products and measures the competitiveness of each product. Factors scored were to determine the best senior life insurance were:

1. Cost competitiveness (30% of score): This measures the level of premiums and internal policy changes, including the cost of insurance, fixed administration expenses, and cash value-based wrap fees.

2. Reliability of policy illustrations (30% of score): When you could be holding on to a policy for decades and counting on cash value to accumulate, you want to avoid surprises. This factor measures the reliability over time of the company’s illustrations.

3. Historical performance (30% of score): This measures whether the historical performance of the company’s investments that fuel cash value growth are superior to other companies’ comparable products.

4. Financial strength (10% of score): This measure incorporates the insurer’s financial strength ratings from four major rating agencies. Financial strength is particularly important when you’re relying on a company to be able to pay claims for many decades.

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