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Life insurance is key to protecting both you and yours beneficiaries. Because of the wide range of support that a life insurance policy can offer, there are numerous groups that can benefit from securing a policy. Whether you are a parent of young children, the spouse of a partner who relies on you financially or even a younger person Starting out in your career, life insurance is often a valuable and cost-effective financial product.
When we talk about life insurance for seniorsHowever, the common wisdom is that life insurance is simply not worth having. The cost of life insurance for seniorsis considered to be too high for the amount of cover that can be taken out.
While the pricing structure for life insurance for seniors is significantly different than that for younger demographics, there are some seniors who would actually benefit from taking out a policy. And the costs of doing so don’t have to be prohibitive.
If you’re in the market for life insurance, start by getting a free quote so you know exactly what to expect.
Life Insurance for Seniors: Dos and Don’ts
If you’re an older person considering life insurance, then it might help to understand these dos and don’ts as you go through the application process.
Know your budget
Before you hit the “apply” button, make sure you know what you can afford. As mentioned, senior life insurance costs can be manageable, especially if you are in good health. But the more you claim as coverage, the more you will be expected to pay in premiums. So it helps to first know where you have room in your budget. This will make the application process smoother and more expedient.
You don’t want to get your hopes up by being quoted for a policy you can’t afford. On the other hand, you may be able to secure more coverage than you originally expected. Estimate the numbers, have a best figure in mind, and then go from there.
You can get a free price estimate so you know exactly what it would cost.
Don’t automatically assume that life insurance isn’t worth it
Just because you’re older, you shouldn’t automatically assume that life insurance isn’t worth having. What may be beneficial for one adult may not be so beneficial for another and vice versa. So, look at it through a personal lens.
Perhaps you need a policy that can help cover end-of-life expenses such as wakes, funerals, burials and more. Then a life insurance policy in an appropriate amount may actually be worth it. Likewise, if you don’t have much (or any) savings or equity to leave to your loved ones, then a life insurance policy can help fill the gap. It can also help pay off any debt you would otherwise leave to family and friends.
So don’t immediately rule out getting life insurance because of your age. Depending on your personal circumstances, it may still be useful to have.
Choose the right policy type
Life insurance comes in all shapes and sizes with the two most popular types being whole and term. The former has an attractive cash reserve that can be used while he is alive while the term does not. Termhowever, it is often significantly cheaper than whole life insurancelargely due to the lack of cash reserves and the predetermined life of the policy (whole life insurance lasts for the life of the insured).
For the elderly, especially those of a budget, term life insurance may be the better option to pursue: it’s cheaper and can be termed for as long as the insured thinks is necessary. Whole life insurance is also beneficial, but these cash reserves take time to build up and the benefit will not be immediately available.
Figure out your goals and what you can afford and then choose your policy type from there.
Do not miss a medical examination
If you are healthy and want to offset some of the insurance provider’s concerns about your insurance, then be sure to get medical examination. A medical exam that tests your blood, urine, blood pressure and more can go a long way towards securing your policy – and will help reduce the premium costs you would otherwise pay if you pass the test.
That said, if you’re worried about what an exam might reveal (or just want to speed up the process as much as possible), you can also apply for life insurance without exam. Just understand that due to the lack of a health check, you are likely to pay more for this type of protection.
Get a free quote now or use the table below to browse some of the best life insurance providers on the market.
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Contrary to popular belief – and depending on your personal circumstances – life insurance policies for seniors can actually be useful and cost-effective. However, to get the best policy, you need to know your budget and why a policy is needed. Also, make sure you choose the right type of policy and don’t skip your medical.
If you think you could benefit from a life insurance plan, start with a free price estimate.