Only 59% of Americans have life insurance, and many of those who do have it don’t have the coverage they need. This means over half of those living in the U.S. could leave behind financial burdens that would fall to their family to pay.
On the flipside, there are some great insurance options available to seniors that will provide enough coverage to avoid any potential financial fallout. In this article we’ll look at various types of coverage, along with notes to keep in mind as you’re comparing these options.
What Kinds of Options Are Available?
Let’s talk about the basic life insurance policies for seniors.
Term life insurance provides coverage for a set period of time, usually from 5 to 30 years. This type of insurance guarantees a death benefit payout if the policyholder dies within the coverage period. The monthly premium on term life insurance varies depending on the amount you select as a death benefit payout; the higher the payout, the higher the premium.
Even if you’re over the age of 60 you can still qualify for a term life insurance policy, but the term may be limited to 20 years maximum, and your premiums will likely be high. Term policies tend to be more difficult to acquire as you get older.
With whole life insurance, there is no term period. Your coverage stays in effect as long as you’re maintaining monthly premium payments, which is one of the reasons that whole life insurance is also referred to as “permanent life insurance.”
Selecting the Right Coverage
Once you’ve selected the basic type of policy that’s right for you, you’ll want to consider these questions to help you determine how much coverage you need:
- What do I intend for my policy to cover? If you’re specifically trying to cover final expenses, take into account how much your funeral or service will cost, along with your burial or cremation. But be sure to add additional coverage just in case you incur any medical expenses at the end of your life.
- Do I have estate taxes or other debts that will need to be paid? If the answer is yes, add the amount it would take to pay these off into your coverage amount.
- Do I plan to use this policy as an inheritance for my beneficiaries? Some people choose to pay their final expenses up front and use their policy death payout as an inheritance for their beneficiaries. If this is the route you’d like to take, factor up the amount you wish to leave for each beneficiary and purchase coverage accordingly.
Senior Life Insurance Coverage Add-Ons
Many senior life insurance companies offer additional riders that can be added to your policy, including:
- Waiver of premium rider. This type of rider provides a coverage payout in case of disability.
- Living benefits rider. This rider provides money to help with expenses incurred from an unexpected chronic or terminal illness, alleviating the burden of medical expenses for your loved ones.
- Family insurance rider. Family insurance riders allow you to add family members onto your current policy so that a death benefit is paid out in the event that one of them passes away.
Ask the Experts at Americo Senior Life
Looking for guidance or resources? Americo Senior Life has been serving senior communities for decades, and offers a number of life insurance products specifically tailored to meet the needs of seniors and elderly people. Our policies require no medical exam, provide coverage up to $30,000, and offer premiums that won’t increase over time.
Get on the path to better peace of mind and insurance security with Americo Senior Life. Contact us today to start your free quote!*
*All benefits described in this article may not be available with Eagle Premier.