What Kind of Life Insurance is Best for Seniors?

Martha was 71 years old when she died. Before her death, she received a fixed amount of money every month. She had medical insurance but no life insurance. When she died, her surviving family didn’t receive anything.

Unfortunately, she left a burgeoning debt because of her medical treatment. Her health insurance did not cover everything related to her therapy.

Her family was devastated… unable to pay the money owed.

If she had life insurance, her surviving family could have received a significant amount to pay for the debt, funeral, and everything.

Many of us take life insurance for granted. We thought that we had enough money in our savings account to handle future expenses.

But sometimes, life can be cruel. You could die while crossing the street or be electrocuted while plugging an appliance.

If you don’t have life insurance, your family will be like Martha’s family. They’ll be left devastated.

Since you’re the breadwinner, your spouse or kids would face potentially devastating financial losses.

It’s not yet too late. If you’re over 60 years old and have no life insurance, you can still purchase one.

Life Insurance for Seniors — Providing Cash 

The policy can deliver a sum of money when you need it. When you die, your family will receive a payout immediately.

It is a death benefit that your surviving family will use to pay your funeral, debt, etc.

In a way, it is your financial safety net. Your death will leave your family with no income. But with life insurance, you can make sure that they have the money they need to pay for the mortgage, child care, medical care, and other things

But you may ask, “I’m already aging. Can I still buy life insurance?”

Fortunately, it is still possible to purchase a policy.

Term Life Insurance for Seniors 

It provides coverage for people of all ages. The coverage is temporary. It means that it will expire after a certain term is over.

Thus, if you die while your policy is still active, your family will receive a death benefit. It may not be a lot of money, but it will take care of a loan or a mortgage. They may even use it to start a business.

In other words, your family can use the lump sum to cover your final expenses.

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Permanent Life Insurance 

It has lifelong coverage. When you pass away, your beneficiaries will receive a lump sum that they can use to cover your financial responsibilities.

The policy offers a cash value component.

While you’re still alive, this policy lets you borrow money from the cash value or take a loan against it.

You may still qualify for this type of policy. However, you must remember that it takes a lot of time to build cash value.

Also, the premium will be a lot higher if you choose to purchase it late in life, like in your 60s.

Simplified Life Insurance 

This type of policy will get you covered in a matter of days. You will find it attractive because it does not require a medical exam.

Instead of a medical exam, you just need to fill out a health questionnaire. It is quick and easy to obtain life insurance with a simplified issue policy.

That’s why many seniors would choose it.

However, the death benefit is limited. This is only ideal if you have no debt. Your family can use it to pay for your funeral or at least provide your family inheritance, no matter how small it is.

Guaranteed Life Insurance 

Out of these options, this one is best for seniors who are suffering from a medical condition or who are in poor health.

Just like simplified life insurance, you don’t need a medical exam or answer health questions. In that case, you can’t be turned down.

But you must be ready to pay for its premiums. Compared with other types of life insurance, guaranteed life insurance premiums are higher. But the coverage amounts are quite lower.

What is the Cost of Life Insurance for Seniors? 

The exact cost can’t be determined. It still depends on your age, health status, type of policy, and coverage amount.

The average cost of life insurance premiums for seniors in their 60s is $82.56 if they wish to provide their beneficiaries with a death benefit of $250,000.

On the other hand, if you wish to leave them with a million dollars, you must be ready to shell out at least $250 a month.

However, the average cost is for nonsmoking males and females who are in generally good health.

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What Policy to Choose? 

Your coverage is different from seniors who are in their 50s or 70s. Since you are 61 and in good health, you can still reap significant benefits from obtaining whole life insurance.

As mentioned, older people will have to endure a higher premium. If you wish to qualify for this policy, you need to undergo a health exam.

On the other hand, if you can’t afford its premium, there are still other affordable options you can purchase.

As mentioned, a term life policy is ideal for you. But the downside is that you need to undergo a medical exam.

Even if you’re in good health, you may still outlive your policy. In that case, you won’t get the death benefit.

Thus, the best option is to purchase a final expense insurance policy. You can’t expect the benefit to reach $1M. But it doesn’t require a medical exam and the premiums are lower.

What to Do Next? 

Now that you know how important life insurance is, it is time to talk to a financial adviser. Don’t think that it is too late for you to obtain one considering your age.

As long as you are breathing, it is never too late. Consult with a financial adviser to know what type of life insurance for seniors you can still purchase that will let you provide a significant amount of money when you leave this world.