Senior Life Insurance in California

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  • Post last modified:November 17, 2021

Life insurance can be incredibly helpful for people of all ages. It can provide financial coverage for the families, cover funeral costs and ensure that loved ones are supported after the policyholder’s demise.

Life insurance plans can differ in every stage of life depending on age and health. Younger adults consider highly about their dependants whereas seniors look for life insurance to cover funeral expenses, outstanding debts, and medical bills from a terminal illness.

What’s more, life insurance can be costlier depending on your age. Fortunately, senior life insurance in California costs lesser and has more benefits, reducing financial burdens from your loved ones.

Average Life Span in California

The average life span of people in California is 82 years. The life expectancy of the people depends on social and economic characteristics.

California has a higher life expectancy rate than the rest of the US-based on income, education, health care, housing, and environmental factors. People in this state are considered senior citizens once they reach the age of 62 years.

The elderly in California above the age of 65 years is 14.8% of the population. Around 6 Million Californians are above the age of 65 years, which increases government responsibility, and the cost of maintaining the livelihood of senior citizens.

The senior residents of California need life insurance to ensure they don’t burden their family members financially with the cost of funerals and terminal illnesses. The elderly members of society who don’t have loved ones to care for them need specific insurance plans for the safety of their families.

The amount of senior population in California is increasing rapidly, requiring the state to take measures to protect the livelihood of the elderly citizens of the society.

A simple life insurance plan can protect the rights of the elderly and leverage their loved ones from the burden of unexpected financial expenses.

Sample Costs for Seniors in California

Californian insurance companies offer flexible insurance plans for the elderly with very few limitations. The plans available for the citizens may not last more than 20 years, offering a lesser term life coverage.

The objective of the plan that most individuals seek in California primarily focuses on the financial accomplishments targeting the overall coverage costs. The term life insurance option is the least expensive option for the elderly and provides a coverage period of 10 to 15 years.

An ideal, cost-effective plan for the elderly covers the mortgage, replicates your income and pays for the medical bills. Such a plan costs around $58 monthly and $672 annually.

Whole life insurance plans for seniors are around $1,119 and $2,103 a month for a $250,000 death benefit. The plans for healthy women cost around $929 to $1,798.

Available Policy Types for Seniors

Purchasing life insurance at an early age has lots of benefits. You have lesser health problems and so the plans are more affordable.

The life insurance quotes increase with age and health problems increase the policy cost. The available policy types for seniors in California are whole life insurance, term life insurance, and guaranteed issue life insurance.

Whole Life Insurance

A whole life insurance policy is better for senior people as it costs less and provides more coverage. A whole life insurance policy in California for a healthy individual nearly 60 years old can cost $257 per month.

Term Life Insurance

The senior having good health can sign up for term life insurance. The whole life coverage lasts for life and increases in value whereas the term life coverage is usually cheaper.

A healthy 60-year-old individual in California can get coverage of $100,000 for a twenty-year term. The cost of term insurance is usually between $38 to $52 per month.

Guaranteed Issue Life Insurance

This policy is for those seniors who are not in good health. Guaranteed issue life insurance offers expensive coverage without any possibility for rejection.

A $25,000 guaranteed issue policy costs an average of $144 per month for a 60-year-old. This policy has limitations and the insurance issuer may not pay in full until the waiting period is over.

In case of death of the policyholder within two years of signing shall not make them eligible for the complete amount and shall only get the individuals the accumulated premium amount.

Why Do Seniors Need Life Insurance?

Seniors should consider a life or burial insurance if he or she has the following needs.

Funeral Expense

The cost of a funeral and burial is around $9500 and exceeds $2000 for cremation. If you have not covered yourself with a plan, then this cost falls upon your family when you pass away.

It is up to the seniors to consider these expenses in their planning and take timely measures selecting a plan that provides the most benefits and coverage.

Medical Expenses

Medical expenses are inevitable and they keep on accumulating. The burden of medical bills affects your family and becomes difficult to manage if full-time care is required.

More importantly, the medical expense of a terminal illness can be extremely high and can affect household expenses if not managed through deliberate planning.

Pension Replacement

Spouses require insurance to manage expenses and maintain standards of living when their significant other passes away. Family members suffer a lot when they stop receiving pensions and this hinders them from managing essential expenses.

Estate Taxes

The family’s need for covering estate and inheritance taxes are all covered through the estate tax. This tax essentially protects the inheritance and saves the family from having to sell the property.

Sustaining a property inherited is vital for the family to reap long-term financial benefits.

How Much Coverage Do You Need?

Getting the most insurance coverage to reap maximum financial benefits from the insurance should be a priority for the elderly. Therefore, they must choose a plan that benefits them during life and their loved ones once they pass away.

You can get the most out of your life insurance by gaining the necessary expenses needed during your life span. Therefore, it would be best to choose a plan that makes this possible while focusing on the plan that offers the most benefits.

When looking for a plan, the financial needs that may come along in the future must be assessed carefully. The debt obligations of the elderly must also be considered with safer alternatives.

The most frequently sought-after expenses for the elderly are education funds for children, preparing an emergency fund, and coverage obtained through work, etc.

What’s Special About California?

special about CA

All senior life insurance plans have numerous benefits for the elderly but the plans offered for the Californians have some value-added features.

Whole life insurance policies have a remarkable feature of adding cash value with time. These cash-based funds are accumulated over some time to ensure that holder can borrow against security or withdraw once matured.

A huge portion of the cash value paid as premiums goes towards the cash value making the life insurance expensive. The cash value against the whole life insurance is not generally suitable for the elderly, as they desire more coverage.

However, family members benefit once the policyholder passes away. On the contrary, the guaranteed universal life insurance policies offer lifelong coverage at cheaper rates.

Is Burial Insurance Enough?

The cost of a funeral and burial in California is high. Senior citizens who are not covered with burial insurance may leave a huge expense on their loved ones.

The cost of burial in California is around $9500+. If you have not covered yourself with a plan then this cost usually falls upon your family and loved ones when you pass away. This form of insurance coverage essentially protects the family members from burial costs.

Burial insurance may not enough for some policyholders as it is important to plan numerous other expenses. The seniors must evaluate these expenses and assess the fund requirements to meet these expenses.

It is also important for seniors to choose a plan that offers coverage against terminal medical expenses. This plan must replace pensions and pay for estate maintenance and taxes after the policyholder passes away.

Available Life Insurance Companies in California

There are many companies available in California that provide senior life insurance solutions. The lists of a few of the companies are the following:

  • New York Life
  • Transamerica
  • Northwestern Mutual
  • Lincoln Financial
  • MassMutual
  • Pacific Life
  • Prudential Financial Inc
  • AIG
  • John Hancock
  • State Farm

Selecting the best plan with the offerings and the most coverage is important. The companies mentioned above are some of the best senior life insurance providers in California, with thousands of the state’s residents relying on them.

How to Find the Best Senior Life Insurance in CA

Are you looking for the best coverage option for your parents? The best quote will be based on your parent’s age medical condition, location, and the amount of coverage that is required.

Your parents need to participate in the application process by taking a quick phone interview and signing the application.

Don’t worry, we want to help you.

Fill out our form and get the best quick life insurance quotes from companies operating in California within seconds. We want to help families residing in California find the most reliable life insurance solutions!

Bottom Line

Any kind of insurance is better than having no insurance. So why wait and waste time, get insurance for your loved ones right away.

We are offering the best quotes for seniors in California. Get a quote for your parents or loved ones right away. You never know what may come next, so get a suitable policy to protect your health and future finances.

Linda Chavez

I'm a burial & senior life insurance expert, independent agent, Founder & CEO of Seniors Life Insurance Finder. I have been working in this sector since 2004 and established my own company in 2014. I have a team of seven members, and we are trying hard to share the knowledge we've gathered. We know how difficult often it is to find an affordable policy. Hence, we are doing our best to help you.