Life Insurance for Seniors: What To Consider and Knowing Your Options
December 17, 2024 | Kari Mellone
There are two crucial topics that are of the utmost importance as you age: Life insurance and medical insurance. On one hand, you want to maintain a healthy, positive way of living so you can live longer and be happier. On the other hand, you know you’re getting older, and life insurance is becoming increasingly more important to ensure your loved ones are taken care of after you pass. Ensuring both precautions are in place can help you live the last decades of your life confident that you and your family are taken care of. In this article, we’ll be focusing on life insurance options specific to seniors, so you know what to consider and how to obtain the right policy for you at this stage in life.
Life Insurance For Older Adults
Life insurance for older adults and seniors has an array of benefits, such as providing financial security and offering peace of mind. It is designed to help cover end-of-life expenses, leave a legacy for family and loved ones, or pay off any outstanding debts. Life insurance is a way to make sure that your beneficiaries are taken care of when you are gone and ensure that they can benefit from the assets you’ve worked hard to build over your lifetime.
Factors to Consider
Obtaining life insurance can be intimidating as you get older because the reality of your age and condition are becoming more apparent. This is why it’s imperative to consider the facts, understand how pre-existing conditions can affect life insurance approval and work with a professional who can help you navigate life insurance plan options. Before deciding what life insurance is ideal for you, it’s important to consider these important factors and how they will affect your eligibility and purchasing costs:
- Age – How old are you? How will this impact the cost of life insurance?
- Health status – Are you dealing with a chronic medical condition, or do you feel fresh as a spring chicken?
- Finances – Are you still trying to meet financial goals? Are you hoping to leave an inheritance or pay off debts?
- Savings and assets – Do you need a policy that will cover for a lack of savings? Do you need minimal coverage to keep your savings intact?
- Dependents and beneficiaries – Who are your beneficiaries? How will they benefit from the policy you choose?
- Affordability – What’s your budget? What can you afford?
Purchasing Life Insurance as a Senior
It’s a fact that seniors do have additional factors to consider when obtaining life insurance, especially since costs are often based on age. Because of this, many people believe that it’s unnecessary or that it’s too expensive and unrealistic to obtain. However, in many instances, it can be more affordable than you think. Working with a knowledgeable life insurance broker who specializes in senior insurance plans and can compare multiple insurance companies and policy options is particularly beneficial in this situation.
What Are Your Life Insurance Options?
There are several types of life insurance policies available. The purpose they serve varies and which type is best for you will depend on several factors and your financial goals.
Term Life Insurance
Meant to provide coverage for a specific time frame, a term life insurance policy can provide peace of mind during high-risk periods or when you have outstanding debts that are currently being paid off.
Whole Life Insurance
Offering lifelong coverage, whole life insurance is an option for seniors looking to ensure financial security for their loved ones. Whole life insurance can build cash value over time and has a guaranteed death benefit, which can help cover costs of end-of-life expenses, debts, or other financial needs.
Related Article: What to Know About Getting Life Insurance if You’re Over 65
Universal Life Insurance
If you prefer a more flexible policy, universal life insurance could be a good choice. This type of insurance allows the policyholder to adjust the amount or timing of premium payments and, in some cases, even the death benefit.
Final Expense Insurance
Final expense costs can be substantial, including funeral services, burial expenses, and other end-of-life costs. A life insurance policy specifically designed for final expenses can help cover these costs, alleviating financial and mental pressure on loved ones during an already difficult time.
Guaranteed Issue Life Insurance
Guaranteed-issue life insurance is a great choice for those with ongoing health issues that would affect their eligibility for life insurance options. Since it doesn’t require a medical exam to get coverage, it can be an option for those that may not otherwise qualify.
Related: Buying Life Insurance for the Grandkids
Where to Find Life Insurance Coverage
Having the proper life insurance policy in place is an important part of planning for the future. Not only does it offer financial security and help cover financial obligations upon someone’s passing, it also provides peace of mind. This is why you want to make sure that the policy you buy aligns with your goals and provides the right level of coverage. The experienced life insurance brokers at Twin City Underwriters have been helping individuals like you select the right life insurance plan for over 50 years. When you partner with us, you can ensure that you get the right coverage for your needs and that your loved ones are financially protected and are taken care of when you are gone.
Choosing a life insurance plan can be difficult. Working with an insurance broker can help you find a plan that fits your needs. Schedule a one-on-one meeting with one of our life insurance brokers to get your insurance questions answered!
