One of the biggest fallacies about life insurance is that aging adults of a certain age don’t need it anymore. The reason most American adults purchase life insurance is to protect some of their more important financial obligations such as family members and mortgages. While this can be an advantageous purchase for young adults, it is still something many aging seniors benefit from as well.
Reasons Seniors Can Benefit from Having Life Insurance
In many ways, aging adults are not that different from a young adult purchasing life insurance, with the exception of age. Both age groups often have others who are counting on them whether it is young children or grown children.
If you are unsure if you might need to purchase life insurance as a senior, consider the following:
- Would your family have difficulty covering your funeral or burial related expenses?
- Do you have debt in the form of a car or mortgage that could be bequeathed to your family?
- Will a disabled family member or loved one require special care after your passing?
- Do you own a business that could burden family members with costly inheritance taxes?
- Do you want to pass along some of your wealth to a spouse, children, or grandchildren?
If you are a senior and your answer to any of these questions is yes, then it is worth your while to consider purchasing life insurance for yourself. In each of the above instances, having a life insurance policy in place prior to your passing may help alleviate financial concerns.
When Is It Too Late to Buy Life Insurance as A Senior?
It is never too late to purchase life insurance for yourself, but they key is finding the right provider. It is not uncommon for some life insurance companies to offer policies to aging seniors, including those over the age of sixty-five. In fact, in some cases, life insurance may be accessible for adults in their late seventies and early to mid-eighties.
Whether you are thirty-five or seventy-five, having a life insurance policy in place may help provide for funeral, burial, or other end of life expenses, as well as offer some financial relief to family members and heirs left behind.
Life Insurance Policies for Seniors
While it can be an excellent idea for seniors to have a life insurance policy in place, it is worth noting that not every policy is created equal. There will be differences in premiums, benefits, and more, which makes choosing the right policy critical. Just because a company offers life insurance for seniors, does not mean its policies are right for you.
The primary types of life insurance offered to seniors typically include:
Final Expense Insurance:
This type of insurance differs from most others in that it is designed primarily to cover costs associated with funerals, burials, and other end of life expenses. These insurance policies generally do not go beyond twenty-five thousand dollars.
Term Life Insurance:
This is life insurance that is guaranteed for a term such as a ten- or twenty-year term. This can be a good option for seniors that enjoy good health. However, if a senior outlives a term life insurance policy, they may have to purchase additional life insurance to remain covered at the time of their passing.
Universal Life Insurance:
This type of insurance is one of the most popular for seniors as it does not expire after a term and can be more flexible than other life insurance options. Some policies may result in a cash account if there is more money than what is required to pay for end of life expenses.
Whole Life Insurance:
This is a permanent policy designed to last for the duration of your life, meaning the policy does not end before your life does.
Within each of these different kinds of life insurance policies are even more plan choices. Make a point of speaking with a senior care expert about determining the best possible policy for you or your loved ones.
How Much Does Senior Life Insurance Cost?
Due to the nature of aging, you can expect life insurance premiums to increase as you get older. In addition to this, a number of other factors such as geography and lifestyle choices can play a role in how much a policy costs. The criteria will vary greatly from individual to individual, putting some people’s monthly premium as low as $40, all the way up to or beyond as much as five hundred dollars.
In the end, the determining factor in how much a policy costs is what type of policy you buy, and which provider you buy it from.
5 Tips for Finding Senior Life Insurance
In light of all of the above, it can sometimes feel overwhelming when it comes to looking for senior life insurance. To help simplify the process a bit, here are five tips:
1. Do your homework. Ask friends and respectable senior care organizations if they have any recommendations regarding life insurance providers.
2. Do not go with the first insurance provider you get a quote from. It can be a good idea to let the company know you will be shopping around to see who has the best price.
3. Make sure you are comparing apples to apples. As you compare companies and policies, make sure you are comparing the same line items, or it can be easy to get attracted to a lower cost policy that doesn’t really accommodate what’s needed.
4. Choose a policy for your needs. This can seem like a no brainer, but some less reputable companies may try to get individuals to purchase a policy that may be more expensive than what they actually need.
5. Read the fine print. Before agreeing to anything, take your time to read the fine print and make sure that the policy you are buying is indeed what is listed in the details.
If you have questions or concerns about purchasing senior life insurance, please contact Senior Estate Concierge to see how we can help.