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Life insurance can be helpful at any age, ensuring loved ones are taken care of when you die and in many cases providing much needed support source of funds while living.
For seniors, however, life insurance options may be limited. Many companies have age restrictions on certain plans, and those that offer senior-eligible policies tend to charge higher prices. Is it worth the investment?
If you’re a senior looking for life insurance — or want to increase the coverage you already have — contact a life insurance expert now who can help. start with a free quote.
Here’s what seniors need to know about their life insurance options.
How senior life insurance works
Life insurance for seniors comes in several forms: Term life, all the lifesimplified issue, guaranteed issue and universal life.
Here’s how each works:
- Term life covers you for a certain number of years, possibly five, 10 or 20, depending on your age. If you die within this time, your insurer will pay a death benefit to your beneficiaries.
- All the life the insurance covers you for your entire remaining life. Like term life insurance policies, they provide a guaranteed death benefit for your beneficiaries and a fixed premium. They also have a cash value that grows over time, which you can withdraw, borrow or use to reduce or completely eliminate your premium payments.
- Simplified problem The insurance is a type of whole life insurance for seniors who are generally in good health, but who may have a few chronic health problems or medical conditions. They only need a health questionnaire, not a complete medical examination– although they tend to come with lower death benefits than traditional whole life or term policies.
- Guaranteed issue policies are for the elderly or those in poor health. They do not require a medical exam and guarantee a small death benefit for your beneficiaries.
- Universal life insurance is a type of permanent life insurance that covers you until death. It provides a benefit to your beneficiaries and a cash value account, like whole life insurance, but you can adjust your death benefit amount and premiums as needed over time. There is also no guaranteed death benefit. If your policy loses its full cash value, there will be no benefit left for your heirs.
Not all insurance companies offer all types of policies, so if you’re looking for a specific one, you may need to shop around a bit. Use the chart below to explore your options or call a life insurance expert now who can help find a plan that works for you.
How much does senior life insurance cost
Life insurance tends to cost more for older people, as they are considered to be at higher risk than younger policyholders. The exact cost depends on your age, health condition, gender, type of policy and the insurer you choose.
According to Progressive, the average 60-year-old man pays about $174 a month for $35,000 in whole life insurance, while the average woman prime is $135 per month. At age 70, the premium would jump to $263 and $209 per month, respectively.
You can easily get a quote now by answering a few simple questions.
What senior life insurance covers
The elderly can stand up to $1 million in life insurance coveragealthough it depends on the type of policy you choose, your health and the budget you work with.
With all types of policies, your coverage will go toward the death benefit your beneficiaries will receive upon your death. In the case of a whole or universal life insurance policy, your coverage will include both a death benefit and a cash value account, which you can withdraw, borrow or use to cover future premiums.
Who benefits from taking out senior life insurance?
The main purpose of life insurance, even for the elderly, is to support dependents and family members after death. It can also help loved ones cover funeral and burial costs or pay medical bills or unpaid debts (like a mortgage, for example) that can stay in your wake.
In the case of whole life insurance policies, seniors themselves can also benefit.
Whole Life Cash Accounts earn interest and grow over time. You can even borrow money from the account, withdraw money as needed, or apply the funds to your policy premiums. This can free up monthly cash flow and be useful for fixed-income households.
Need senior life insurance? Consider your options
Life insurance for seniors can be expensive, so be sure to consider a few options before deciding which insurance company to purchase a policy with.
Start exploring your options today and find a policy that works for you and your loved ones.