Finding low-cost senior life insurance can be difficult, but many senior citizens need insurance policies to keep their households financially protected. By understanding how different types of life insurance work, you can get an affordable policy that provides adequate coverage. Read also: Things you Really Need to Know about Senior Life Insurance.
Why Term Life Insurance Works Well For Senior Citizens
In order to find affordable life insurance quotes for seniors, you should look for a term life policy. Term life insurance is less expensive than permanent forms of insurance like whole and universal life, although it does not offer a return of the policyholder’s premiums at the policy’s end. Standard term policies have a set death benefit that the insurer will pay if the insured dies during a set term, which ranges from 1-30 years. Senior citizens will usually want a relatively short term policy with a term of 1-10 years. Read also: Why Seniors Need Life Insurance?
There are a few key terms to consider when purchasing life insurance for seniors:
- Guaranteed renewable policies can renew at the end of the their terms, although their premiums will not necessarily stay the same. A guaranteed renewable policy with a short term might work well as temporary life insurance for a senior citizen.
- Annually renewable term life insurance policies operate for a year at a time. They usually have a guaranteed renew-ability clause. However, a senior citizen will see premiums increase significantly from year to year with this type of policy.
- Some clauses like double indemnity are designed for policyholders with potentially dangerous jobs or hobbies. Senior citizens can often refuse these types of clauses to reduce their insurance rates.
Lowering Premiums And Getting Great Coverage
To get the most affordable senior life insurance possible, you should try to buy a policy as early as possible. Make sure to buy an appropriate amount of coverage and buy the longest term length that you can afford, provided that the policy falls in line with your long-term financial strategy. A longer term means higher premiums, but you will pay less overall in premiums than you would pay for several shorter policies. Read also: Life Insurance Rates for Seniors.
Another great way to get lower life insurance quotes for seniors is to stay healthy. Get regular physicals and medical examinations. If you have a clean bill of health, you should still be able to find affordable life insurance for seniors. Life insurance companies use complex tables of actuarial statistics to decide premiums, and a lack of preexisting health conditions often counts for more than the applicant’s age.
Although you might initially have trouble finding affordable senior life insurance, you can often find a great policy by taking the time to compare insurance rates from as many providers as possible. Make sure to understand how your policy works and check to make sure that your insurer is licensed in your state before you sign a contract. Check the life insurance company has a strong financial rating from A.M. Best. With the right research, a senior life insurance policy can provide a lot of peace of mind.