See what senior citizens need to know when choosing or changing a life-insurance policy, including benefits and premiums.
For some senior citizens, life insurance can alleviate financial concerns that come up later in life. You may worry that your spouse or grown children will suffer financially after your death. Once thought of as unnecessary or too expensive, life insurance for seniors has become an important and practical way to protect your family and their long-term financial goals.
Some reasons seniors buy life insurance
- Your previous term policy expired.
- You retired and lost group life insurance from your employer.
- You want a second life insurance policy to provide additional coverage.
- You worry about reduced Social Security or lost pension funds for your spouse.
- Your children or grandchildren may benefit from financial assistance after your death.
Money from a life insurance policy is payable immediately and is usually tax free, which means your loved ones or other beneficiaries can quickly receive the full amount of your life insurance policy.
Some ways beneficiaries can use your life insurance payout
Without a life insurance payout, your beneficiaries may have to liquidate assets or borrow money to pay your debt or other bills. But with your death benefit, your heirs can pay:
- Funeral costs
- Expensive medical bills
- Inheritance taxes
- Daily living expenses
- College tuition
Popular types of life insurance for seniors
Life insurance for seniors is offered by several companies and is tailored to meet the unique financial needs of people over 50.
The cost and the policy’s value will depend on the type of policy you select and what you can afford.
Term life insurance for seniors:
This policy is good for seniors who want to protect their loved ones for a certain number of years. It can be less expensive than other policies, especially for seniors in good health. Because seniors are living longer, it’s not unusual for a person in their 60s to purchase a 20-year-term life insurance policy.
Whole life insurance for seniors:
This type of life insurance is usually more expensive but will last for the rest of your life. Part of the premium you pay gets invested with the goal of earning more money for your beneficiary.
Guaranteed life insurance for seniors:
With this policy, you probably won’t have to undergo a physical exam, which makes it a good option for seniors with health complications. Your beneficiaries may only receive the full amount of your death benefit if the policy is active for a number of years before you die (usually two or three years).
Cost of life insurance for seniors
Being older usually means paying higher premiums because life insurance companies are taking a greater risk to insure you. Part of deciding whether life insurance is right for you now is determining whether you can afford it. Monthly premiums can vary from a few dollars to $1,000 a month or more, depending on the type of policy you choose. Since more seniors are buying life insurance, many companies now offer a variety of life insurance policies for seniors. This means more competitive pricing and better deals for you. So you can probably find life insurance that works within your budget and still provides a payout amount that will help your loved ones after your death.
Visit eHeathInsurance for your life insurance coverage and let our friendly agents help you.