Life Insurance for Seniors: 3 Questions to Ask

Life insurance is considered a fundamental part of sound financial planning. Whether you’re just starting your career or buying a new home, life insurance may benefit you. Both men and women, single and married, parents or siblings, can all generally benefit from the financial protection that a strong life insurance policy can provide.

One group often left out of life insurance discussions, however, is older adults. Life Insurance for Seniors Often considered not “worth it” when compared to coverage that can be secured cost It takes to make it safe. But, despite conventional wisdom, there are some seniors who can actually benefit from taking out a life insurance policy. And they don’t necessarily need to break the bank to get it.

That being said, it pays to do your research. So if you’re a senior considering life insurance, make sure you can adequately answer a few questions first. You can start by getting a free price quote so you know exactly what to expect

Life Insurance for Seniors: 3 Questions to Ask

Are you a senior considering a new life insurance policy? Then start thinking about how to answer the following questions.

Why do you need life insurance?

Everyone’s personal financial situation is different. What is convenient for one person may not be for another and vice versa. Accordingly, if you A senior considering life insurance Then start by knowing exactly why you need it. This will help determine how much What do you ultimately apply for? Type of policy What you need and what it will cost in the end.

For example, if you only need a policy that covers end-of-life expenses such as wake, funeral and burial expenses, you can apply. Term life insurance The amount the policy will pay for those items. If you want a policy that can pay off outstanding debt or your existing mortgage, you may want a policy with an amount greater than the estimated $20,000 to cover end-of-life expenses. If you are leaning on your life insurance as a legacy for loved ones, you may need a larger policy.

Before proceeding with a policy, first know why you need it. This will better inform your decision making and ensure that you have a policy that works best for you.

You can get a free price estimate now to find out exactly what it will cost.

How much can you pay?

A life insurance policy for $1 million or may be more but if you cannot afford the premium to maintain such a policy then the amount of coverage will not really matter. Therefore, you should go into the life insurance application process with a picture in mind.

What is your budget for a policy? Is it $100 per month or less? Can you cut corners elsewhere and spend more on life insurance? The answer to this question is important in determining whether a life insurance policy is worth it to you.

For example, if you can afford a monthly premium of $80 — and the coverage will cover end-of-life expenses you otherwise can’t afford — then a policy might make sense. Likewise, if you’re looking for coverage for several thousand dollars but can’t afford a premium that allows for it, it may not be worth pursuing.

Know your budget and then go back to a policy that can work for you.

How long do you need it?

Whole life insurance The policies last for the lifetime of the policyholder and they bring an attractive cash reserve that can be accessed while alive. But they tend to be significantly more expensive than term life insurance policies, which only last for a fixed period of time.

when Whole life insurance and term life insurance Both have unique advantages and disadvantages, you must first determine how long you need a policy before committing to one type or the other. A whole policy might be better if you’re a younger senior, but for many other seniors, a term life insurance policy with a term of 5, 10 or 15 years may be enough to meet their goals (and protect their wallets).

Crunch some numbers and terms to determine which one works best for you.

Bottom line

Life insurance is beneficial to a wide segment of the aging population – including the elderly. But to truly get the most out of a policy for older adults, they need to proceed smartly. By knowing why they need life insurance, how much they can afford and how long they need it for, they will be able to secure a valuable and affordable plan.

Get started with a free price estimate or use the table below to compare some of the top providers