By the year 2036, the population of seniors is expected to double. Statistics Canada projects that seniors will then represent about 25% of the overall population.
The aging of the vast baby boomer generation is a big factor driving the increase in older citizens. Another reason is the fact that more elders are living longer due to medical advances.
For older consumers looking to buy life insurance, this means that they should pay close attention to both the lowest available premium rates and the duration for which those rates are guaranteed.
This analysis focuses on the lowest term life insurance premiums at ages 60, 65, 70, 75 and 80. Minimum rates are based on a comparison of online premium quotes from Term4Sale.com.
The most affordable life insurance premium rates are organized by age bracket. The term during which rates are guaranteed to remain the same is shown immediately to the left of each listed premium amount.
Lowest Life Insurance Rates at Age 60
Listed below are the best life insurance rates for a non-smoker male age 60:
- Lowest annual premium for 5 year term – $651 (USD per $100,000);
- Lowest annual premium for 10 year term – $579;
- Lowest annual premium for 15 year term – $808;
- Lowest annual premium for 20 year term – $989.
Based on this benchmark study, the best term life insurance rate that a non-smoker male age 60 can choose is $579 for a 10-year term life insurance policy.
Lowest Life Insurance Rates at Age 65
Shown below are the best term life insurance rates for a male non-smoker age 65. These premiums are almost double the rates at age 60, notably for a policy in which the premium amount remains fixed for 20 years.
- Lowest annual premium for 5 year term – $1,050 (USD per $100,000);
- Lowest annual premium for 10 year term – $900;
- Lowest annual premium for 15 year term – $1,474;
- Lowest annual premium for 20 year term – $1,982.
Lowest Life Insurance Rates at Age 70
When male applicants reach age 70, annual life insurance premiums spike. For example, the lowest premium for a policy with a 20 year term costs more than triple the lowest price of a similar policy issued at age 60 ($3,327 versus $989).
- Lowest annual premium for 5 year term – $1,670 (USD per $100,000);
- Lowest annual premium for 10 year term – $1,675;
- Lowest annual premium for 15 year term – $2,534;
- Lowest annual premium for 20 year term – $3,327.
Lowest Life Insurance Rates at Age 75
When they attain age 75, men will have a hard time finding a life insurance company willing to issue them a 20 year term policy. That policy would guarantee coverage up to age 95, well beyond the average life expectancy of even a non-smoker male.
There was only one life insurer offering a quote for this benchmark review, Genworth Life Insurance Company of New York. Even then, their 20 year term life insurance premium shown below is almost 8 times more expensive than a policy with same term issued at age 60 ($7,808 versus $989).
- Lowest annual premium for 5 year term – $2,583 (USD per $100,000);
- Lowest annual premium for 10 year term – $3,111;
- Lowest annual premium for 15 year term – $4,862;
- Lowest annual premium for 20 year term – $7,808.
Lowest Life Insurance Premiums at Age 80
Senior males age 80 will not find even one Term4Sale life insurance quote online that offers a 20 year rate guarantee.
However, the best rates for 5, 10 and 15 year term life policies for 80 year olds are readily available.
The lowest rates for male non-smokers age 80 are as follows.
- Lowest annual premium for 5 year term – $5,098 USD per $100,000;
- Lowest annual premium for 10 year term – $5,477 USD per $100,000;
- Lowest annual premium for 15 year term – $15,322 USD per $100,000,
Best Term Life Insurance Rate for Senior Men
The most economical way for seniors to buy term life insurance after age 60 is to select the most cost-effective policy with the longest possible rate guarantee period.
Consider the following example.
Based on the lowest rates from this study, consider a 60-year-old senior man who buys a 20 year term policy with a guaranteed $989 annual premium rate. That senior will pay $19,780 in premiums over 20 years for coverage up to age 80.
If that same 60 year old had shopped around for the cheapest 5 year term life insurance, he would have paid the following amounts over 20 years:
- $651 at age 60 for 5 years ($3,255)
- $1,050 at age 65 for 5 years ($5,250)
- $1,670 at age 70 for 5 years ($8,350)
- $2,583 at age 75 for 5 years ($12,915).
The grand total of charges to buy even the cheapest 5 year term policies over 20 years amounts to $29,770.
That amount is over 50% higher (or $9,990 more per $100,000 of term life insurance) than the senior would have paid simply by choosing the longer 20 year rate guarantee at age 60.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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