Should Seniors Buy Term or Whole Life Insurance?

Life insurance provides financial benefits to adults of all ages.

For a fee to a provider each month, policyholders can secure financial protection of several thousand dollars or more. $1 million. Although it is generally recommended that you purchase a policy young As much as possible, life insurance can also offer attractive benefits Senior and older adults.

There are two main types of life insurance in the market – Term and complete – Each offers unique protection. They come with different price points. For seniors considering life insurance, it’s important to understand what differentiates these two insurance types from one another. This will help ensure they are choosing a policy that works best for them – and their budget.

If you’re in the market for life insurance, get started now by getting a free price quote.

Should Seniors Buy Term or Whole Life Insurance?

As mentioned, both of these types of insurance have attractive benefits. It really comes down to the individual and their personal financial circumstances. Here’s what to know.

Term life insurance

Term life insurance Generally good for seniors who want the protection that a life insurance policy can provide but don’t want to break the bank to get it. Since these policies only last for a certain period of time (hence the name) they tend to be cheaper than their whole life insurance counterparts. And while prices rise as applicants age, Term life insurance for seniors doesn’t have to be expensive.

For a 64-year-old man living in New York, Haven Life quotes a 10-year term life insurance policy in the amount of $150,000 for $98.74 per month. This is a quote for a non-smoking male who is considered to be in good health. A woman with all the same characteristics would pay even less – a 10-year term life insurance policy for $150,000 would cost $70.11 per month.

This type of life insurance is usually best for seniors who need a policy now, or for the short term, but don’t need it for the rest of their lives. So if you have people who are financially dependent on you now (like children) but you expect them to be independent in the next few years, term may be your best option.

Start by getting a free price estimate so you know exactly what to expect.

Whole life insurance

Whole life insurance They cover the insured until they die. There are no expiration dates and no renewals to complete. This type of policy also comes with a desirable cash reserve which, once accumulated, can be accessed during the life of the policyholder. alive. Because of these two selling points (length and cash), whole life insurance policies cost significantly more than term policies.

Still, the price may be worth it for many seniors. This type of insurance essentially serves as a valuable investment tool that some people may want to use during their lifetime. But if you’re fine with just life insurance — and no backup reserves — term life insurance may be a smarter, more affordable way to go.

Don’t forget no-test life insurance

no matter what Types of Life Insurance Seniors are ultimately selected, who can skip the traditional medical exam if they wish. Most insurance companies request that applicants sit for a medical examination To determine their overall health. But if you’re an older adult worried that the test results might disrupt what you’re being offered (or reject you altogether), go for the testing route. No-Test Life Insurance Both term and whole policies can be joined, giving seniors flexibility when building their coverage.

You can now get a free life insurance price quote.

Bottom line

Life insurance for seniors can be valuable financial protection. But how much it’s worth depends on the individual and the type of policy they choose. Both term and whole insurance types have unique advantages and disadvantages. But both can be secured without taking a medical exam if it seems to be in the senior’s best interest.