4 Life Insurance Tips for Seniors

If you’re worried about leaving your children or loved ones with expenses after you die, you may take a second look at life insurance as a senior. Seniors face special challenges when purchasing life insurance; premiums get more expensive with age, and illnesses or family health histories can make qualifying hard. Here are some tips that can help seniors find the right policy for their needs:

  1. Consider term life insurance
    Term insurance offers coverage for a set number of years and is usually much less expensive than permanent life insurance. While term policies don’t accrue any cash value, they can offer you higher coverage limits and more flexibility at a reasonable cost, even as a senior.
  2. Don’t cancel your old policies
    While certain life events – such as emptying the nest or paying off a mortgage – should trigger an insurance review, canceling an old life insurance policy may be a bad idea. If you have accrued value in a whole life policy, you may be able to convert it into a term policy, or simply reduce your coverage to suit your new circumstances. Always consult a qualified insurance expert who understands your overall financial situation before making any changes to your insurance coverage.
  3. Check out guaranteed acceptance life insurance
    If you’re worried about qualifying for insurance due to your medical history, you may want to talk to an insurance expert about a guaranteed acceptance policy. These policies are designed to offer high-risk policyholders protection from accidental death. Unfortunately, they typically come with higher premiums as well as limited benefits for an initial period of years (to avoid “deathbed” coverage). While these policies are expensive, they may be a worthwhile option for seniors with insurability issues.
  4. Buy final expense insurance
    If you’re primarily concerned about covering a funeral or paying off debts after your death, a small final expense policy may be enough for your needs. Though details vary between policies, these types of policies are frequently available to seniors well into their 70s or 80s.