Life Insurance for Seniors - Maximizing Your Life Insurance Coverage as a Senior

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Life insurance for seniors is an excellent investment if you want to ensure financial security once you reach your golden years. From medical expenses to burial services, life insurance for seniors can cover the most common expenses of elderly people.

However, given the number of insurance companies promising quality and wide service coverage, seniors tend to have a hard time deciding what’s best for them. In this article, we will share information that will help you find the right insurance policy based on your needs.

What is Life Insurance

Life insurance is a policy agreed upon between the insurance company and the policyholder. The policy includes premium monthly payments to be paid by the policyholder, and in exchange, the insurance company ensures coverage for various expenses such as health, medical, and even burial services depending on the type of insurance you choose.

There are many types of life insurance which will be discussed in the next part of the article.

Types of Life Insurance for Seniors

The following is the list of different types of insurance you should know.

Whole Life Insurance

Whole life insurance or permanent life insurance is a type of insurance that lasts for a lifetime of the policyholder, unlike term life insurance where the insurance is effective only within a set period of years.

Once the policyholder dies, the insurance company will continue to pay benefits to the surviving loved ones included as beneficiaries of the policy. Additionally, whole life insurance also includes a saving component that the policyholder can use in a form of a loan. Whole life insurance typically costs about 1000 to 2000 dollars a month.

Term Life Insurance

As mentioned, term life insurance is a type of insurance that can last for a specific period of years typically 10 to 30 years. Also, unlike whole life insurance, term life insurance only covers death benefits and does not have a savings component.

This insurance type is more affordable than whole life though, which usually costs 100 to 500 dollars a month for a 10-year policy. Rates may increase for longer years.

Final Expense Insurance

This type of policy helps loved ones with burial expenses at the time of the policyholder’s death. This is one of the most patronized types of life insurance among seniors because other than it being more affordable compared to other insurance types, it is also easier to get qualified for one.

One just has to answer a series of health questions which will be the basis of the policy rate. No other medical exams and tests to undergo.

Universal Life Insurance

One good thing about this type of life insurance is that it is flexible. This means that you can skip payments without affecting the effectiveness of the policy. However, this may affect the value of the policy as it will increase at a slower rate. This is a good alternative for seniors who have difficulty paying for term insurance policies though.

Benefits of Life Insurance to Seniors

Availing of life insurance is no doubt beneficial to seniors. Aside from ensuring financial security after retirement, it also offers other benefits such as:

  1. It can be used as cash in times of need - Types of life insurance like whole life insurance can be a useful source of cash in times of need. Since this type of insurance has a savings component, the policyholder can get cash in a form of a loan to cover household repairs or health expenses.
  2. It can benefit loved ones when you pass away - Most life insurance pays benefits to the surviving heirs or loved ones when the policyholder dies.
  3. You don’t have to worry about end-of-life expenses - This is one of the best things about availing of an insurance policy. Your loved ones need not make a fuss about finding cash for burial expenses as you are ensured that they are covered by life insurance.

Top Life Insurance Choices for Seniors

There are many life insurance companies out there promising affordable and flexible policies, and to help you filter out the best options, we listed six of the best life insurance companies based on ratings and reviews. Below is the list of insurance companies you should consider.

  • Pacific Life: Wide policy options and customization are what makes Pacific Life a good choice for seniors. However, some policies may have age restrictions depending on the length of the policy. It would be wise to talk to an insurance policy agent first to help you assess the best plan for you and your family.
  • Transamerica: Transamerica is known for its excellent rates for term life insurance policies which best fit an average senior’s budget for life insurance. There is also an option to upgrade your current term plan to a super-term life policy or a permanent life insurance policy.
  • New York Life: Known for its high ratings and positive reviews, New York Life is one of the best life insurance companies for seniors. What makes it an excellent choice is that it offers policies to seniors up to 90 years old, which is higher than most of its competitors who only offer policies to seniors up to ages 80 to 85.
  • State Farm: When we talk about a good reputation, State Farm certainly has it. This insurance company has been around for over a century and still continues to provide a wide variety of coverage and customizable policies to seniors and adults.
  • Guardian Life: This is another senior-friendly insurance company that offers policies to seniors up to age 90. Also, just like State Farm, Guardian Life has maintained a good reputation over the years. However, given the number of policy options, one may have a hard time choosing an insurance plan. Consulting an insurance agent might help you guide your way through the right plan.
  • Mass Mutual: Mass Mutual offers both term life and whole life insurance policies. What’s good with Mass Mutual is that most services can be accessed online. This offers convenience to seniors who are confined to their homes. With a few clicks, you can file a claim, check policy status, and monitor payments.

Final Word

Life Insurance provides seniors peace of mind right after they retire because they know that they will be financially secure throughout their remaining years. Loved ones can benefit from the insurance as well. Moreover, older adults who just considered availing of life insurance can still get one despite their age.

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