Starting with research is the single best way to find affordable life insurance for a 67-year-old. It opens the doors to money saving tips and resources to find the best company for your family, even in your 60's.
Saving money on life insurance at age 67 is easy if you follow the simple tips below. Insurance doesn't have to break the bank, even if you have a medical condition. There are companies out there who cover every situation and need.
To see rates, scroll down to the term life insurance rate tables below. You can also use the free Instant Quotes tool on the left.
How to Save money on Life Insurance for a 67-Year-Old
There are several easy ways to save money on life insurance at age 67. Anybody can use these tips to save themselves thousands of dollars on life insurance throughout their policy.
Use a Life Insurance Needs Calculator
How much life insurance your family needs will vary with how many dependents and financial responsibilities you have. Particularly if retirement has decreased your income, it’s unwise to use the X times your annual salary rule. You either end up paying way too much for coverage you don’t need or don’t buy enough to cover your family.
Using a free tool like a Life Insurance Needs Calculator can tell you exactly how much life insurance to consider. This way you don’t get oversold and spend unnecessary money. You also get the peace of mind that your family will be provided for.
Term Costs Less than Permanent Life Insurance
Permanent life insurance can easily cost five times as much as term life insurance. Everyone passes on at some point so the life insurance company will pay the claim eventually. Term insurance is more of a gamble for both you and the insurance company.
Permanent life insurance does have some advantages. It may build up tax-free cash, you won't outlive the policy and it is an excellent tool for estate planning.
Term life insurance only pays if you pass away within the term limit. Usually 10 or 20 years, if you buy at 67. Because the life insurance company is hoping that you live beyond your term, they can afford to charge less. Much less.
Independent Agents Can Comparison Shop for You
Independent life insurance agents can work with as many companies as they choose. Since insurance companies must set their price by state, all rates across your state will be the same no matter who you work with.
This gives independent agents the advantage because they can compare underwriting policies between companies to see which one will offer their client the best deal.
Company agents (called captive agents in the insurance business) are contractually bound only to sell the policies of their employer company. They can’t offer you a policy from anywhere else. So while they may have many policy options to choose from, the underwriting guidelines are the same. That means if their company charges more for something like high blood pressure, they can’t shop around to see if someone else will offer you better rates.
Explore Conversion and Renewal Options
If you have a life insurance policy right now, then you may have the option to convert it to a permanent policy or renew your term. It will depend on the policy you originally bought.
You must take advantage of this before your current term policy expires. There aren’t usually grace periods.
The primary advantage of rolling your current policy into a new one is no new underwriting. Meaning if your health isn’t quite what it was when you took out the policy years ago, it won’t impact your rates. You will pay rates based on your current age, but your health class will remain the same.
However, if you have a convert/renew option on your current policy and your health has improved, then you may want to consider going through underwriting again. While you will still pay rates for your current age, you may qualify for a better health class.
Pre-screen Any Pre-existing Medical Conditions
Life insurance with pre-existing medical conditions adds an extra step in the research process. Every company rates every situation differently. For example, some companies don’t worry much about diabetes, others will charge exorbitant rates.
When applying for life insurance with medical conditions, talk to your agent about it first. Companies rarely disclose their underwriting policies for medical conditions publicly. Working with an independent agent can help narrow down the options to only the companies who will offer you fair rates.
Term Life Insurance for a 67 Year Old Man
These monthly rates reflect a 67-year-old man in relatively good health who doesn’t smoke. Your prices may be even better if you’re in excellent health for your age.
Term Life Insurance for a 67-Year-Old Woman
These rates also reflect a 67-year-old woman in relatively good health. They are also non-smoker rates.
Permanent Life Insurance Over 67
The type of life insurance you buy should reflect why you are buying life insurance. It doesn’t make any sense to get a term policy for estate planning. Just like it doesn’t make any sense to get a permanent policy to cover a mortgage.
With permanent life insurance, it will last for your whole life. Most 67-year-olds are considering estate planning with their life insurance. It could be covering estate taxes, leaving something for a spouse or heirs, or every once in a while it’s left to charities.
Permanent life insurance also comes with a cash value accumulation. How you can use it will depend on the type of policy you get, but it can work as a no-questions-asked loan, or even pay premiums if emergency expenses come up that month. The cash value builds up over time as you pay your premiums.
Some permanent policies also come with other riders that let you take out death benefits early to cover medical expenses or if you become terminally ill.
Burial and Final Expense Insurance
A more straightforward type of permanent policy that is becoming increasingly popular is final expense insurance, also called burial insurance.
Many families don’t have the $8,000 on hand to cover the average funeral and burial cost. Cremations cost about the same, although a few states average around $7,000.
Burial insurance gets tricky. The premiums are low because the benefits are low, usually between $5,000 and $25,000. They last for life, like a permanent policy, but without the cash value accumulation.
Because burial insurance accepts almost everyone, it runs a little more than a term policy with similar or higher benefits. So you have to weigh the pros and cons between the lifetime coverage or save a little money gambling on term coverage.
Life Insurance with Medical Conditions
We mentioned pre-screening any medical history before you apply to make sure you get the right company, but what does that entail?
When working with an agent, they’ll have a good idea of which companies will offer the more reasonable rates for most common conditions. Occasionally, this will need to be looked into a little further by check in with underwriters to get tentative health class assessments.
A pre-screen is an anonymous process. Medical information is protected by Federal law. So it comes down to general information about your condition or medical history. This allows your agent to check in with several companies to see which one is the most worthwhile for your application.
You can look into how different medical conditions affect life insurance here. We are continually expanding this section to include as many medical conditions as possible.
Guaranteed Issue Life Insurance
Severe forms of some conditions make getting traditional life insurance extremely difficult if not impossible.
There is an alternative, called guaranteed issue life insurance. It approves everyone who applies. As long as you’re within the issue age range, usually 18 to 75.
This is a last resort type of life insurance. The benefits are limited, and the premiums are higher. In addition to the benefits being lower than most other forms of life insurance, they’re also graded.
Graded means that if you pass away before holding the policy for a specified number of years, it will only pay your beneficiary a percentage of the death benefits. This prevents the insurance company from going out of business through people taking out life insurance policies right before they pass away.
However, your beneficiary will never lose out. The minimum payout is 110% of the premiums paid.
Typically, graded benefits look something like the following table.
110% of Premiums Paid
110% of Premiums Paid
100% of Death Benefits
Life insurance at 67 is within reach. Make sure you have your medical information handy if you have any pre-existing conditions. Also take the time to shop around for the best prices, or have an independent agent do it for you.
To see rates at varying benefits or different health classes, use the free Instant Quotes tool on the left. It’s at the top of the page if you’re on mobile.
How Abrams Insurance Solutions Can Help
We are a group of independent life insurance agents looking to help families save as much on life insurance as possible. That’s why we put together tools like the life insurance needs calculator, so you know you aren’t spending a penny more than necessary.
If you have any questions, then give us a call at (888) 905-0333 today. We’re always happy to help, and there is never any obligation to buy. Or leave a comment below and we’ll reach out as quickly as we can.