Even though life insurance can be an important financial vehicle for people who have young children or others depending on them, those who are seniors also often need the protection that life insurance can provide.
Today, as the Baby Boomer generation progresses into their senior years, it is estimated that each and every day, roughly 10,000 people in the U.S. turn 65. Many of these individuals will still require life insurance for a variety of different reasons.
For example, the protection that life insurance can provide will allow your loved ones to pay off debts that you may leave behind. Unlike in the past when many seniors may have had their mortgage, and other debts paid off, now there are more and more seniors who are still purchasing homes, funding businesses, and taking on other types of debt.
In addition, when the time of a person’s funeral arises, loved ones may be forced to pay for this and other related final costs. It is estimated that the average cost of a funeral today can range from $7,000 to $10,000 – an amount that many decedent’s families may not have readily available for paying these bills. But, by having life insurance in place that is earmarked for final expenses, these bills will not fall to your loved ones and survivors.
Many seniors may also have a favorite charity that they would like to donate money to. And, while you can certainly do so during your lifetime, providing a charitable entity with the proceeds from a life insurance policy can increase your donation exponentially.
Types of Life Insurance Available for Seniors
There are several different types of life insurance coverage that are available to seniors. These include both term and permanent coverage options. With a term insurance policy, you will have death benefit protection that lasts for a certain amount of time, or “term.” An easy way to think about it is that term is temporary. Often these policies are offered as either a 10,15,20, or 30 year level term period. This is means that the premium will not change during the level term period.
A permanent life insurance policy will provide you with death benefit coverage that typically as long as you pay the premium will stay in force no matter how long you live. There are different types of permanent life insurance policies which included include whole life, indexed life, universal life, and guaranteed universal life.
Usually for low cost permanent life insurance of $50,000 or more that will provide coverage no matter how long you live, as long as you keep paying the premium, we will recommend a guaranteed universal life policy. If you need just need a small policy such as $10,000 or $20,000 perhaps just for burial costs or final expenses then a final expense whole life policy will usually be the best option for you.
What is the Best Life Insurance for Senior Adults to Purchase?
As a senior, you still have many different options that are available to you regarding life insurance. Because of this, there is no one-size-fits-all coverage alternative for seniors. The best life insurance for you should be based upon your specific goals and needs.
However, based on your needs, as well as your current health condition, there may be certain types of coverage that would be more beneficial than others. For example, if your primary goal is to ensure that the balance of your mortgage is paid off so that your spouse or other loved ones will be able to remain in the home, then a term insurance policy could be advantageous. This is because a term policy could be lined up with the length of your mortgage obligation, and if the unexpected occurs, the policy will pay out.
However, if you are seeking life insurance coverage for more of an indefinite period such as for estate planning issues, then a permanent life insurance policy could be the better alternative. Likewise, if your spouse or significant other would lose some or all of their income when you pass away, permanent life insurance coverage could also provide proceeds for income replacement for him or her.
Permanent life insurance is often used to provide a source of funds if a pension would be lost if someone passes away. Another reason is because if you are married and both receiving a Social Security benefit the smaller Social Security check will no longer be received when the first spouse passes away. A permanent life insurance policy can help provide these funds to help make up the difference in the income that was lost.
How Much Does Life Insurance Cost for Seniors?
There are many different parameters that go into the total premium price of life insurance coverage for seniors. As with life insurance for anyone, the type and the amount of the insurance that you’re purchasing will be important criteria, as will be your age and your gender.
In addition, an individual’s health condition and health history can also have a lot to do with the price of the life insurance that they can buy. And, if you have a certain adverse health issues such as diabetes, cancer, or a heart condition, then it is likely that the insurance company will want to know more information about your specific issue.
In this case, they may ask you questions such as how long you have had the condition, how are you managing and / or controlling the condition, and how often to you visit your doctor or specialist regarding your particular health issue.
There can be other pertinent criteria, too, such as if you are a smoker, the price of the life insurance that you purchase will likely be more than a comparable insurance policy for someone who does not smoke.
Also, just like with any other products or services that you purchase, life insurance can be priced differently from one insurance company to another – even for the same amount and type of policy. With that in mind, it is always important to shop and compare several different plans before you make your final purchase decision.
One of the best ways to do this is by working in conjunction with an independent life insurance brokerage or agency. That way, you will be better able to directly compare – in an unbiased manner – numerous policies, companies, and premium prices, and from there you can determine which one will be the best for you.
Know that it’s extremely important to work with an independent agent instead of a captive agent especially if you have any adverse medical history. If you have any significant medical history you want your independent agent to ask you a number of questions pertaining to the issue in order to help match you to the company that would look at your application most favorably.
If you are speaking to an agent that doesn’t ask a lot of question you are either speaking to someone that doesn’t have as much experience. Therefore, they don’t know the pertinent questions to ask. Or they may be a captive agent.
A captive agent can typically only offer you one insurance from one company so for the captive agent its’ not about matching you to the right carrier. Instead a captive agent will just want to proceed with the application for only company he/she has access to and hope for the best. A good independent agent will take the time to do the homework upfront to help make sure they understand your medical history so that they can help match you to the insurance company that will most likely offer you the best rates.
Do You Have to Take a Medical Exam to Get Senior Life Insurance?
With some types of senior life insurance coverage, you will be required to take a medical examination to qualify for the policy. This exam will typically require that you provide a blood and urine sample.
Other types of life insurance for senior adults will not require you to undergo a medical examination. For instance, there is no medical exam life insurance. Here, you may still need to answer some health questions, but a medical exam will not be necessary.
If you apply for a guarantee issue life insurance policy, you will typically not need to take a medical examination, nor will you need to answer a long list of health and medical related questions.
Where to Find the Best Quotes on Senior Life Insurance Coverage
While the best life insurance for senior adults can depend on many different factors, working with a life insurance specialist can assist you with narrowing down your insurance goals, and in turn, the type and the amount of life insurance that will be right for you.
If you are a senior and you are seeking the best life insurance coverage – as well as affordable premium quotes – we can help you. We work with many of the top life insurance carriers in the marketplace today, and we can assist you with obtaining all of the essential details that you will require for making a well-informed buying decision.
We can do so for you quickly and conveniently – all from your computer – and without having to meet in person with a life insurance agent. If you are ready to begin the process, then just simply take a quick moment to fill out the form on this page.
Should you find that you still have any questions or concerns about finding the best life insurance for senior adults – or, even if you just happen to have a general question about life insurance – please feel free to call us directly.
Determining what type of life insurance coverage to purchase can sometimes seem overwhelming. There are many variables to choose from – and you want to be sure that you have enough protection to cover your specific needs. We can work with you in finding the best life insurance for you. So, contact us today – we are here to help.