If you’re feeling anxious about reaching that “senior” category of your life and not having good life insurance, take a deep breath! It doesn’t matter your age; there is a good chance that not only are you not “too old” to find a good life insurance policy for you, but there is probably a senior life insurance policy out there that will fit your life perfectly.
Here are all the details you need to know when you’re choosing a senior life insurance policy, no matter your age or health.
The biggest question people have when looking at an insurance policy is what is available in your age range. The answer is a lot!
There are several companies out there that promise what is called guaranteed issue life insurance, which may have been what got you thinking about getting life insurance to begin with – those catchy commercials on television!
There are a lot of benefits to a guaranteed issue life insurance policy, including very few questions associated with it. When signing up for this type of life insurance, there are few probing questions and no medical information is given.
The idea of no medical questions can seem tempting, but don’t get too caught up – there are downsides, too.
Premiums for this type of insurance policy are usually very high, even for a small amount of coverage. You might find the payments manageable, but it’s possible that you’re only going to be getting a small amount.
Coverage is also often limited – rarely can you find a policy that goes over $25,000. These small amounts are fine for paying for a funeral and dealing with final expenses, but you’re not going to find a policy that helps pay off a mortgage, or car, or offering any kind of inheritance.
Also, it’s important to read the fine print, because these are usually “graded” benefits. If you pass within a few years of obtaining the policy, your loved ones may only receive a small portion of the policy. The longer you live and pay on the policy, the more they will receive.
Uninterested in this type of policy? Wondering what else is available when it comes to senior life insurance, then?
Term life insurance is a great option if you have obligations that will surpass your death, like a mortgage, car payments, etc.
With term life insurance, you pay over a certain period of time for a set amount – you pick the time frame and the amount of coverage you want. The older you get, however, the harder it is going to be to find a term life policy.
There is also a real risk that you outlive your policy, which could put you in an unfortunate position.
Whole life insurance is the best way to ensure that your loved ones get the most, and as long as you continue to pay your premiums, you will always be covered. The downside, however, is that if you lapse on your payments, all your hard work and payment on the life insurance policy goes away.
In addition, it is generally much more expensive than a term life policy, so it’s important to make sure you’re budgeting and comparing accordingly.
While the policies available to you go down as your age goes up, you can absolutely find a senior life insurance policy that fits your budget and needs. Even if it is only enough to cover final expenses for your loved ones, knowing that you’re leaving behind something to help ease the stress and pain is a big comfort.
Life insurance policies are best for those who know their loved ones rely on them, who may have debts that require paying off – like a mortgage or family vehicle – or for those who want another layer of savings and security.
Life insurance isn’t out of reach, so consider your options wisely and find a plan that fits in your budget and life.