If you’re 60 or older, you might think the opportunity to buy life insurance has passed you by. While premiums do increase with age, you may have more options than you realize for term or permanent life insurance — even if you have some health issues. Here’s what to know:
Do seniors even need life insurance?
Maybe you’ve retired and no longer have coverage through work, or the term policy you bought when you were younger has expired. Yet, you don’t have enough assets to help your loved ones maintain their quality of life or avoid burdening them with your end-of-life expenses. Life insurance is designed to solve problems like these, even when you’re older.
Do you need temporary coverage?
A term life policy provides coverage for a predetermined number of years. Maybe you thought you’d have a paid-off home by now, but instead you have 10 years left on your mortgage. A 10-year term policy may be a good choice.
Do you need permanent protection?
Burial or final expense insurance is a whole life policy with a small death benefit (often $50,000 or less). It’s designed for older adults who have health issues or can’t afford a larger policy.
There’s no medical exam to qualify; you only have to answer a medical questionnaire. If you’re eligible for a simplified issue policy, your coverage will begin as soon as you’re approved.
If you have serious medical conditions, you can get a guaranteed issue policy. It has no medical questionnaire but doesn’t pay a death benefit for the first two years. If you die during that time, the insurance company will refund your premiums to your estate.
Many seniors (and their adult children) have financial concerns that life insurance could address. Let’s explore your options today.