People get life insurances for a variety of reasons, mostly depending on their current stage of life. For younger people, insurance works as a backup plan that their dependents can use if something unfortunate happens to them. On the other hand, for older people, it’s an entirely different thing.
Seniors opt to get life insurance so they can take care of medical bills, outstanding debts, and even funeral expenses. Not a lot of old people take into consideration how funeral expenses can be quite expensive. For instance, cremation and burial alone can cost thousands of dollars.
If you don’t want this financial burden to heavily encumber your surviving family members, now’s the right time to start looking for the best life insurance companies for seniors.
Life Insurance Tips For Seniors
When getting life insurance, your age will play a detrimental role because you might need to provide a medical exam first before you can choose from different insurance policies that are available for your age bracket.
To start with, here are some tips you could follow to scout the best life insurance:
- Choose The Right Coverage For Your Needs
Seniors often underestimate how much coverage they need for their life insurance. They tend to only think about certain financial needs, such as funeral expenses or a major debt, making them forget that they also need to think about other long-term needs even after they’re gone. Some of these needs are children or grandchildren support, spouse support, and even sustenance of bills and household maintenance.
If you have any of these long-term needs to think about, you can opt for insurance that has good term coverage. However, if you’re only getting insurance for the sake of taking care of your own medical bills or burial expenses, permanent coverage will be ideal for you.
Robert Schmidt with Burial Insurance Pro tells us ” many seniors make the mistake of taking out term policies, which they’ll most likely outlive. If you want an insurance policy to address funeral cost and final expenses, you’ll definitely want a permanent policy. Policies like Whole Life Insurance will provide permanent coverage, and will guarantee that your family will benefit from the policy at the time of your death.”
- Think About Your Health Condition
The thinking that as one gets older, the higher prices they need to pay for life insurance is a common misconception. This is why there are seniors who haven’t gotten around to getting life insurance even up to this point in their lives. While it may be true that life insurance prices change depending on age variability, you can still lower the price if you’re physically healthy despite old age.
Additionally, you can choose to buy no exam life insurance wherein you don’t need to undergo any medical examination to qualify. If you don’t need a high premium life insurance policy, you can definitely consider no exam life to cater to your needs.
- Know The Difference Between Permanent Life And Term Life Insurance
It can get confusing to know the difference between permanent life and term life insurance. In a much simpler term, term life insurance means you’re covered for a certain period of time–usually 10, 15, or 20 years. It’s a good option if you’re waiting for a specific financial milestone such as paying for your kid’s college education or finishing off a mortgage.
Permanent life insurance, on the other hand, is available in these different types:
- Whole Life Insurance: This type of permanent life insurance tends to be more expensive because of its predictability. You can expect guaranteed and fixed death benefits, premiums, and the rate of return on your cash value. Taking out a loan or withdrawing funds against your cash value is also allowed.
- Universal Life Insurance: If you’re aiming for more flexibility, universal life insurance is for you. You can freely adjust your death benefits as well as premium payments within limited parameters. While it’s more affordable than whole life insurance, universal life is still more expensive compared to term life insurance.
- Variable Life Insurance: If you don’t mind a bit of investment risk, you can consider getting variable life insurance. It comes with a death benefit and a cash value allocation, which you can invest on money market funds, bonds, and stocks. Your chosen investment will then decide how much you’ll gain or lose within your cash value.
It’s recommended to note that these insurance types come at different prices and have corresponding pros and cons. Ask your insurance company what they’d highly recommend for seniors like you. Inquire specifically about the rates since they can significantly change depending on age and health conditions.
It’s Better Late Than Never
It’s never too late to start thinking about insuring your future, along with the future of your loved ones. Even in your senior years, you shouldn’t hesitate to get a life insurance policy. It provides several benefits that you can’t easily get from a savings account or a retirement fund.
Life insurance may also serve as a safety net in case your retirement preparations aren’t enough for everything you need to cover financially. Aside from considering the factors above, make sure to also check the insurance company’s credibility, financial stability, and customer reviews.
All of these tips should be able to help you choose the right life insurance while you still can. Remember, it’s better late than never.