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How much should seniors pay for life insurance?

To determine how much they should pay for life insurance seniors should first know how much coverage they want.

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While many financial products and services have value, that worth is largely determined by the cost it takes to secure them. Services like life insurance and car insurance can offer significant amounts of protection for a reasonable fee each month (even discounted if paid annually). That said, the price tag is influenced by a variety of factors tied to the applicant.

Life insurance for young people typically offers the best combination of low cost and high coverage. As applicants age, the cost increases while the payout figure usually drops. This leads to the perception that life insurance for seniors and older adults simply isn’t worth it. But there are many times when life insurance for seniors is valuable and it doesn’t need to be expensive.

So how much should seniors pay for life insurance and how do they come to that figure? That’s what we will break down in this article. If you’re in the market for life insurance then start by getting a free price quote to learn more.

How much should seniors pay for life insurance?

How much seniors should pay for life insurance is a personal question as the amount one person is comfortable paying may not be the same for everyone. That said, there are some considerations applicants should understand that can help narrow down their price points.

These include the following:

How much coverage do you need?

Seniors are no different than other life insurance applicants in the sense that the more they apply for the more they will be expected to pay to get it. Because older adults are riskier to insure than younger ones, however, they will generally pay more. 

So if you’re trying to determine how much you should pay for life insurance first do an evaluation of how much you really need. Are you comfortable with a low six-figure amount? If so, healthy applicants may be able to get a policy for less than $100 a month. Haven Life quotes a 64-year-old male living in New York for a 10-year term $150,000 life insurance policy at $98.74 per month. A female applicant with the same characteristics would pay around $70 for the same coverage.

If you’re comfortable with that coverage amount then you should be paying around the above-mentioned price range. But if you want more or less coverage expect the price to change accordingly.

Get a free price estimate here now to learn more.

How much can you afford?

Put aside the question about how much you should pay and ask yourself how much you can pay. The value of any policy will quickly deteriorate if you can’t afford to maintain it. What’s in your budget each month that you can put toward a term or whole life insurance policy? By knowing what you can comfortably part with each month (and year) you’ll better be able to determine if the quotes you’re receiving are realistic or out of reach.

How long do you need coverage?

If you need protection just until your home mortgage is paid off – or until your children finish college – then you should probably pay less for life insurance by securing a term life insurance policy that can help cover you for a select time frame. 

If you want a policy that will cover you now and for the duration of your life then you should expect to pay more by securing a whole life insurance plan. While this type also comes with an attractive cash reserve that can be potentially used while alive, it’s generally one of the more expensive life insurance types to have.

The bottom line

So, how much should seniors pay for life insurance? The answer to this question is relative. If seniors know how much coverage they need and how much they can actually afford they can more successfully narrow down how much they should then pay to get it. They should also know how long they want a policy for, as different lengths come with different price points. 

To better determine how much you should expect to pay for life insurance it helps to shop for providers and policies. Start by getting a free price quote online now or simply use the table below to compare some top providers on the market. 

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