If you are a senior, it is not necessarily too late to buy life insurance. Whether you want coverage for funeral expenses or to help your loved ones pay off debt, you can find an option to help protect your family. We’ll give you questions to ask before you buy and an overview of your options.
Questions to Ask Before Buying Life Insurance for Seniors
Before you buy life insurance for seniors, review your needs to determine if you need life insurance and how much. Consider your financial circumstances, and ask yourself these questions:
- Do I already have a life insurance policy?
- Will my current assets, including retirement income or investments, be enough to cover funeral expenses and care for my dependents?
- Will my dependents need a life insurance payout to cover my estate taxes?
Term Life vs. Whole Life or Guaranteed Universal Life Insurance
You can find term life, whole life, and guaranteed universal life insurance policies for seniors. The right option for you will depend on your age, financial goals, and your overall health.
Term Life Insurance for Seniors
Term life insurance for seniors is a temporary insurance that can help your survivors pay off debts or a mortgage.
- Details – Most term life policies for seniors are available up to age 70 or 75. You can get a policy for a 10-, 20-, or 30-year term. Depending on the insurer, death benefits range between $100,000 and $250,000.
- Availability – The term length of your policy will be based on your age.
- Qualifying – Your term life insurance application will include questions about your health and lifestyle. You may need a medical exam.
Whole Life Insurance for Seniors
Whole life insurance for seniors lasts your entire life if you pay the premiums on time. If you purchase a whole life policy in your senior years, it is among the most expensive life insurance types.
- Details – You can find policies for seniors between the ages of 50 and 85. Depending on the insurer, death benefits range between $1,000 and $40,000.
- Availability – If premium payments are current, the policy will be active throughout your life.
- Qualifying – Your whole life insurance application will include questions about your health and lifestyle. You may need a medical exam.
Guaranteed Universal Life Insurance for Seniors
Guaranteed universal life insurance for seniors blends term and whole life insurance features. Instead of choosing a term of 10, 20, or 30 years, you choose the age at which you want the policy to expire.
- Details – You can find policies for seniors between the ages of 45 and 85. Depending on the insurer, death benefits range between $25,000 and $100,000.
- Availability – You can select a policy that expires when you reach a certain age – usually up to age 120
- Qualifying – Your application will include questions about your health and lifestyle. And a medical exam is usually required.
Do You Need an Insurance Rider?
Some insurance companies offer riders—or add-on features—to policies for seniors. Get an overview of how insurance riders work from the article, Do You Know How to Use an Insurance Rider or Endorsement, published by the National Association of Insurance Commissioners.
A life insurance rider might offer:
- An accelerated death benefit if you become terminally ill
- Long-term care coverage
- Smaller benefits for children and grandchildren under the age of 18
If you are interested in life insurance for seniors, Hunt Insurance of Raleigh can help. Call or text us or submit our contact form to start the conversation and get a hassle-free quote.