But if you’re over 50, what options for life insurance do you have? Which is the best life insurance for seniors? What types of expenses can life insurance cover?
Let’s take a look at the basics of senior life insurance and what it can provide, so you can make the best financial decision for your place in life.
What Is Senior Life Insurance?
Even if you’re in excellent health, it’s always wise to plan ahead. Life insurance for seniors is designed to cover those expenses that arise at the end of your life, from outstanding medical bills to retirement facilities to funeral expenses. These can become significant financial burdens for your family or loved ones, and a senior life insurance policy can help ease or even eliminate those burdens.
If you don’t already have an existing policy, now is the time to look at your options and start planning. If you’re unsure of what options exist for you as a senior, we’ll give you the basics to help you determine what type of coverage is best given your age, health and financial status.
Learn About the Policies
The two basic types of life insurance policies are term and whole. Let’s look at each option and what they offer.
Term life insurance: This type of insurance provides coverage for a set period of time, typically anywhere from 5 to 30 years. It guarantees a death benefit payout if the policyholder dies within the coverage period. If you’re over the age of 70, your term options may be capped at 20 years or less, which can be a downside – but some insurance providers do allow you to switch your policy over to a whole life policy if you live past your term limit.
Whole life insurance: With whole life insurance, the main difference is there is no term period. Your coverage stays in effect as long as you make your monthly premium payments.
So now that you know the basic options available to you, which do you choose?
Choosing the Right Policy
First, assess your needs. What will you need assistance paying off in the event of your death?
For a traditional funeral, costs can range anywhere from $8,000 to $10,000. This is a hefty expense to consider on its own, but remember that your policy should also be able to cover other debts that you may incur before death. Factor up any outstanding medical expenses, your mortgage, or other debts that will need to be paid off so you don’t leave your loved ones with a huge bill in your absence.
Once you have a general idea of the amount you’ll need in a death payout, it’s time to decide between term and whole life insurance. Remember that if you’re over 70, your options for term life insurance may be more limited, and your premiums will also be higher.
With whole life insurance, your rates will typically be higher than a term policy, but you have the benefit of insurance with no term limits, and your rates are locked in so they never go up. Plus, the added cash benefit can be a huge perk if you need additional retirement income or have other expenses to pay off.
After you assess your needs and weigh your policy options, it’s always prudent to get quotes from various providers and compare them side by side. This will give you a good idea of who can offer you the best rates with the most coverage.
How Americo Senior Life Can Help
As you search for the best life insurance companies for seniors, Americo Senior Life is here to help. Our policies are designed to offer the best coverage for your age and life situation, with benefits ranging from $2,000 to $30,000. Contact an Americo agent today, and in a few easy steps you’ll get a quote for senior life insurance that works for you – and your loved ones.