Types of Life Insurance Available for Seniors and the Elderly
Life insurance is something that provides financial protection and peace of mind for all ages. One fact about buying life insurance is that your needs for
a policy change as your age changes.
The type of coverage and the policy amount you need at age 35 is very different than when you reach milestone
ages of 50, 60, 70, and older.
When you are looking for life insurance and you are in the age range of 50 to 85, it is important to understand
what your options are so that you choose the policy that will suit you the best.
Here is a simple comparison of the types of policies available to seniors and the elderly. Read more to
understand what is good for you.
There are three basic life insurance categories that I'm going to cover here. These are general options that
suit most seniors.
One Option: Burial Life Insurance or Final Expense Life Insurance
A burial life insurance policy, also called final expense life insurance, is a simple coverage option if you are
looking for a way to cover the costs of burying you.
If you want to leave behind a certain amount of money to your loved ones to make sure your funeral arrangments
are adequate, then is the policy for you.
Features of burial life insurance are:
Another Option: Traditional Whole Life Insurance
When I say "traditional" whole life insurance I am simply making a distinction between the permanent insurance
policy that I mentioned above (burial insurance) and a whole life insurance that is obtained for other purposes
besides funeral costs.
For example, maybe you want to obtain a larger permanent life insurance policy to ensure that a certain amount
of money is left behind to your family or to cover costs associated with estate taxes or other debts you have.
Unlike term coverage, which ends at a certain age, whole life insurance doesn't expire. Your coverage lasts as long
as you pay your premium. This type of policy can even be "paid off", depending on the options of the insurer.
Since burial insurance policies only offer permanent insurance cover up to about $25,000, if you need more than
that, then you would opt for a whole life insurance policy.
One very important thing to keep in mind about whole life insurance is that it is much more expensive than term
life. You can compare policy rates for your age here. You can see that whole life is often 2 or 3 times more
expensive than a term policy.
Features of a traditional whole insurance policy:
- The coverage is permanent so your premiums never increase & benefits never decrease
- Your policy accumulates cash value over time
- It is available for seniors ages 50 to 80
- Policy amounts from $50,000 to over $1,000,000 if you need it
- Most companies will require a complete medical exam to determine whether you qualify
- Best for seniors who are in good health. Some health issues are okay, though your rate will be higher
- Learn more details about whole life insurance for
Another Option: Term Life Insurance
Well, I've saved the most inexpensive option for last. Term life insurance is temporary life insurance coverage
that will last for a certain duration of time.
You can get a term policy that lasts for one year, or you can get a policy that will cover you for 30 years. The
term that you choose will depend on your needs (why are you obtaining a policy), as well as your age. As you get
older the term length you are eligible for will decrease. For example, if you are 70 years old, the maximum term amount you could
obtain is a 15 or 20 year term policy (depending on the company you choose).
Term life insurance is a great choice for seniors and the elderly because it is less expensive and it offers you
coverage for a longer duration. But again, it is important to assess your needs to decide if term is best for
Some features of term life insurance are:
- Temporary insurance coverage that last anywhere from one year to 30 years
- Less expensive than permanent life insurance
- Some policies can be converted to permanent life insurance at the end of the term
- Best for seniors who are in good health. Some minor health issues are acceptable, though your rate will be
higher and you may be limited to how much coverage you can obtain
- Learn more about details about term life insurance options
for seniors and the elderly
What If You Have Some Health Problems?
Most companies prefer seniors and elderly who are in good health or have only minor health challenges such as
controlled high blood pressure or hypertension. But let's face it, as you age it is common to face some problems
with your health.
If you are facing more serious health issues now, or in the past, you may have to consider other life insurance
options. Learn more about guaranteed life insurance or graded life insurance, depending on the severity of your health issues.
Compare All Types of Life Insurance Online for Free
Whether you need permanent life insurance or term life, you can easily compare rates online from top companies
in a matter of minutes. It is as easy as putting in your zip code below and providing some details about the policy
you want and the amount you need, and you can compare rates and shop policies.