Senior Life Insurance
While seniors have few outstanding financial obligations, they often have estates that they wish to preserve for their heirs. Senior life insurance can help protect their estates from final expenses, like hospital bills, funeral costs, and other debts, which they may leave when they die. Affordable senior life insurance is a good value for those who want to leave a financial legacy behind when they pass away.
Working Seniors Need Life Insurance
As the average life span of Americans increases, more seniors are remaining in the workforce than ever before. In many cases seniors need to work to supplement retirement income or to retain medical benefits for themselves or for financial dependents. Pensions may cease with the death of a senior, which could leave a spouse or dependent adult child without financial support. In any of these situations, senior life insurance can provide financial security for loved ones.
Why Term Life Insurance?
Although some seniors may have permanent, or whole life insurance which was purchased when they were raising families, many seniors redeem these policies for cash when they retire, leaving themselves without life insurance. Since life insurance premiums get higher as applicants age, the cost of permanent senior life insurance is very high and term life insurance offers much lower premiums, making it an affordable option for those with a limited budget.
Will The Premiums Increase?
Term life insurance rates are fixed for the term of the policy and only increase when the policy is renewed. Term policies are available for various terms, usually from 5, 10, 20, or 30 years. Seniors should consider policies with longer terms to ensure they are covered for their entire life. It is necessary to make regular payments on term insurance for the policy to stay in effect, but the payments can be paid monthly, quarterly or annually, whichever payment arrangement is preferred for senior life insurance.
Is Senior Term Life Insurance Different?
Senior term life insurance is really no different from the term insurance policies written for younger people. As a rule, the premiums are higher since as people age, mortality rates increase, thus increasing risk to the life insurance company. Since premiums are largely based on mortality rates, groups with higher mortality rates get higher term life insurance quotes.
Some life insurance companies may waive medical examinations and health questions for seniors, but their premium rates are usually higher and discounts are rarely available.
Saving Money on Senior Life Insurance
The best way to secure the lowest premiums is to buy a long term policy (30 years) at age 50. Life insurance rates are based on the age of the insured when the policy is issued and remain fixed over the life of the policy. Discounts may be available for non-smokers and individuals with multiple policies from the same insurance company. Seniors should ask life insurance companies about any discounts they offer that may apply.
Other Ways To Save
Groups like AARP and AAA often offer special insurance discounts to their members, especially ones looking for senior life insurance. Seniors with active union memberships may also be eligible for group rates. Decreasing term life insurance has a death benefit which decreases as the policy term advances and may offer lower rates than standard life policies.
Working seniors planning retirement may opt for convertible term life insurance which allows a conversion to permanent whole life insurance at the insured’s request. Compare term and whole life insurance to see which policy is a better fit for your needs.
Life Insurance Quotes
Life insurance should be a part of every senior’s estate planning to preserve the assets they worked a lifetime to amass. Affordable senior life insurance is available for individuals of all ages and the best way to find the lowest life insurance rates is by comparison shopping. Senior citizens looking for life insurance especially tailored to them should explore senior life insurance.
TheLifeInsuranceQuote.com offers consumers free, instant life insurance quotes online to find and compare life insurance rates, policies, and coverage from the best companies in the U.S.
