Next Wave Options
Independent life insurance and retirement income agency serving Salinas and Monterey County.
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Independent life insurance and retirement income agency serving Salinas and Monterey County.
Get a quote
Whole life insurance is the simplest permanent policy there is: you pay a level premium, the policy stays in force for the rest of your life, and it builds a cash value on a schedule written into the contract. For a senior who wants a benefit that will still be there at 85 or 95, that simplicity is the point. It also costs more per dollar of coverage than term insurance, and the cash value grows slowly, which is why this page spends as much time on when whole life is the wrong choice as on when it is right.
Next Wave Options is an independent agency in Salinas appointed with several carriers that issue whole life to applicants in their 60s, 70s and 80s. Because underwriting and pricing at those ages differ sharply from one company to the next, the comparison is most of what we do.
| Policy | Face amount | Underwriting | Premium | Typical purpose after 60 |
|---|---|---|---|---|
| Whole life | Larger; sized to a legacy, estate liquidity or a lifelong obligation | Full underwriting, or simplified issue at smaller amounts | Level for life, the highest per dollar | A permanent benefit for a spouse, children or grandchildren; final costs with room to spare |
| Final expense | Small; sized to funeral and final bills | Health questions, or guaranteed acceptance with a waiting period | Level for life | Funeral and last bills for people in their 60s, 70s and 80s |
| Term life | Largest per dollar | Full or accelerated underwriting; shorter terms at older ages | Level for the term, then it ends or renews at a much higher rate | A need that ends: a mortgage, a business loan, years of income for a younger spouse |
The honest rule of thumb: if the need ends, buy term; if it never ends and the budget can carry a permanent premium for life, buy whole life; if the need is only the funeral, buy final expense. Many seniors hold two of the three.
There is no best carrier, only the best fit for a particular applicant. What we compare, in this order:
Several carriers issue whole life to seniors on a simplified-issue basis: health questions and a prescription-history check instead of a paramedical exam, usually at smaller face amounts and a somewhat higher premium per dollar than fully underwritten coverage. For applicants who cannot pass any health questions, guaranteed-acceptance whole life exists with a waiting period on death from natural causes, commonly two years. Our no medical exam page explains the underwriting paths in detail; the short version is that skipping the exam is a trade of price for convenience, and it is worth knowing which one you are making.
Age at issue, sex, tobacco use, health class, face amount and whether the policy is paid over a lifetime or a fixed number of years. We do not print sample premiums because they change by carrier and would be wrong for you. Face amount and age at application are what drive the number, and a quote takes one conversation. The premium on a whole life policy is set by the carrier and filed with the state, so it is the same whether you buy through us or anywhere else; the difference is that we can show you several.
For clients age 65 and over, California Insurance Code section 789.10 requires at least 24 hours' written notice before an agent meets you in your home to discuss insurance, and California contracts carry a free-look period after delivery during which you can cancel for a full refund. The Department of Insurance's Before You Buy page for seniors is worth reading before you sign with anyone.
Yes. Several carriers issue whole life into the late 70s and some beyond with simplified underwriting, at smaller face amounts. The premium is higher at older ages, so the question is usually whether a smaller permanent policy or a final expense policy fits the need and the budget better.
It depends on whether the need ends. Term is cheaper and fits a need with an end date, such as a mortgage or a younger spouse's income for a set number of years, but it becomes expensive or unavailable at older ages. Whole life fits a need that lasts for life. Many seniors hold both.
Not always. Fully underwritten policies usually do; simplified-issue whole life uses health questions and records instead, at smaller amounts and a somewhat higher price per dollar. Guaranteed-acceptance policies ask nothing and carry a waiting period.
In a standard whole life policy the beneficiary receives the death benefit, not the death benefit plus the cash value. Any outstanding loan is deducted first. Some policies offer riders that change this; the contract states which applies.
No. Dividends on a participating policy are declared by the carrier each year and can be reduced or omitted. The guaranteed cash value schedule printed in the contract is the only part that is promised.
Life insurance proceeds paid to a beneficiary are generally not included in the beneficiary's gross income under current federal law; the IRS page linked above explains the exceptions, such as interest paid on a delayed payout. Estate tax is a separate question for a tax professional.
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Schedule a CallReviewed by Roberto Morales, California Insurance License #0G97165. Next Wave Options is licensed for life and annuity products only and does not provide investment, tax or legal advice.
