Life insurance is an important financial vehicle for people of any age. Although many people may think that when you get older, you don’t need life insurance, that is not necessarily the case. In fact, in many ways, even though your insurance needs may change over time, life insurance can still be an essential component for ensuring that loved ones aren’t left in financial hardship.
It is also thought that life insurance for seniors offers few, if any, choices. But, due in large part to the fact that people are living longer these days, life insurance companies have expanded their offerings – many of which are geared to those who are seniors.
What Type of Term Life Coverage is Available to Senior Applicants?
Although there are numerous ways to cover your life insurance protection needs, there are just two primary categories of life insurance. These are term and permanent.
With permanent life insurance, you receive death benefit protection, and then depending on the type of permanent policy the policy could also be designed to build cash value.
As its name suggests, permanent life insurance is intended to last for most or all of an insured’s lifetime – provided that the premium is paid.
If there is cash value in a permanent life insurance policy it is allowed to grow tax-deferred. Often, permanent life insurance will have a higher premium than term coverage.
With term life insurance, there is also death benefit protection. But, because there is no cash value, this type of coverage can often be more affordable – provided that the insured is in good health at the time of the application.
Term insurance is purchased for a set period, or “term.” Usually, there are different options, such as 10 years, 15 years, 20 years, 25 years, or even 30 years.
For those who are seniors, term life may only be available in the 10, 15, or 20-year option, depending on your age when you apply. This type of coverage can provide you with a way to ensure that certain needs will be covered, allowing you and those you love with peace of mind.
How Can Term Life Insurance Meet the Needs of Seniors?
While many people may feel that any life insurance is no longer needed when you are a senior, this is not the case. Having term life insurance protection in place can allow you to lock in financial protection for loved ones, as well as for other purposes when you are no longer here.
Just some of the ways in which a term life insurance policy can provide benefit to a senior include:
- Mortgage / Debt Payoff – Life insurance can prove you with the assurance that your home mortgage and / or other large debts will be paid off when you pass away. This means that loved ones won’t be saddled with various financial responsibilities – which can provide them with less to worry about at an already difficult time in their lives. Term life insurance, in particular, is used by those who wish to pay off a mortgage balance, as often the term life insurance policy can line up time-wise with the remaining years on the loan.
- College Funding – You may have grandchildren whom you want to help pay for college tuition. If the unexpected should occur before the time that your grandchildren need these funds, having a term life insurance policy in place can help you to ensure that the money will still be available. Many seniors are able to be sure that their promises are still kept – even if the unexpected should occur.
- Charitable Giving – You may also have a favorite charity that you would like to make a donation to. While you can certainly do so during life, naming a charity as the beneficiary of your life insurance policy can allow the organization to receive so much more. And, because these proceeds are received free of taxation by the charity, they will be able to make use of 100 percent of the policy’s proceeds.
- Final Expenses – Regardless of your current age or health condition, it is likely that your loved ones will be faced with final expenses. But, by having life insurance in place, this cost can be taken care of.
How to Qualify for Term Life Insurance If You Are a Senior
Because there are many traditional, medically underwritten term life insurance policies that are available to seniors today, it may still be necessary to complete an application for coverage so that the insurance company’s underwriters may review it.
In this application, you will typically be asked questions about yourself, your health, your health history, and even your family health history. In order to get an even clearer picture of your health condition, the insurance company may also request a copy of your medical records.
Likewise, you may be required to undergo a medical examination as a part of the underwriting process. During this exam, you will meet with a paramedical professional who will take from you a blood pressure and a heart rate reading, as well as a blood and a urine sample.
Once the underwriters have thoroughly reviewed all of the information, they will be better able to determine your approval, and if you are approved, they can also determine an appropriate amount of premium to be charged.
What If You Don’t Qualify for Traditional Medically Underwritten Term Life Insurance?
Due to possible adverse health issues, it is not uncommon for a senior to be declined for traditional, medically underwritten life insurance coverage. If this occurs with you, there are still some strategies available for you to obtain the needed life insurance protection. One way is to apply for a no medical exam life insurance policy.
No medical exam insurance will not require that you undergo a medical examination – and because of this, those who may have certain health issues may still be able to qualify for life insurance.
If you haven’t been to the doctor or had any lab work completed in the last couple of years then opting for a no exam life insurance policy might be something you want to consider.
For instance, you may not know that your cholesterol is elevated. However, if this is discovered as a part of the lab work this will result in you having to pay a much higher premium than you probably anticipated.
How to Keep Your Seniors Term Life Insurance More Affordable
While people may oftentimes think that life insurance for seniors is expensive, there are some ways that you may be able to make your premium more affordable, such as:
- Not buying too much coverage. When in the process of purchasing life insurance, be sure that you have enough protection – but not too much. Knowing what your potential needs might be can help you in coming up with an appropriate amount of coverage. With that in mind, know how much coverage you need before your make a purchase.
- Shopping and comparing quotes. Comparing quotes from several different life insurance companies and insurance policies can also help you to be sure that you’re not paying too much. Many people may not realize that, just as with other types of products or services that you buy, not all life insurance policies are priced alike – even for the very same type and amount of coverage. For example, you could obtain a quote for term life insurance from one insurer, and a quote for term life insurance from another – and discover that the premium is significantly different. Therefore, be sure that you don’t just purchase the very first life insurance policy that is offered to you. Working with an independent life insurance brokerage can help you to directly compare policies and prices all in one convenient place.
How to Find the Best Premium Rates on Over 50 Term Life Insurance for Senior Adults
If you are a senior and your are seeking life insurance coverage, there are still options that are available to you. When you are ready to compare the policies and the premiums that are available to you, we can help.
We focus on assisting seniors find the right type and amount of protection. We will walk you through the quoting process, and answer any questions that you may have. If you are ready to proceed, then just simply take a minute to fill out the quote form on this page.
You can give us a call. We understand that there are many different term life insurance options that can be available for seniors – and finding the one that is best for you can be made much easier with an expert on your side. So, contact us today – we are here to help.