Can you and should you buy life insurance as a senior? There are many benefits to having a life insurance policy in place, even if you are retired and over the age of 55; and, luckily, many insurers offer policy premiums to individuals who are 55, or even 65 and older. But, it’s not the same as buying a policy when you’re 35 years of age, or even 45. So, what should you consider as a senior when shopping for a life insurance policy? These are a few relevant factors to keep in mind.
Dependents & income
First off, you need to consider how many dependents rely on you, especially if you are the sole earner in the family (or were while you were working). This will help you determine how much life insurance you really have to buy, to ensure those you’re leaving behind will have sufficient money to live their life comfortably when you’re no longer around to take care of things.
Type of policy you’ll purchase
You’ll also want to consider the type of life insurance policy to buy. You have a few options including
- Term life, which offers the most coverage for the lowest price (a good option if you’re in good health)
- GUL is a guaranteed universal policy, but might not pay out as much when you pass away as other policies
Depending on your health, debt, how much your family needs, and when they need the payout, you’ll want to compare these policies and insurers, to make sure you choose the right one.
What’s covered under the policy?
You obviously want a life insurance policy that’s going to benefit your loved ones when you’re no longer around. So, you want a policy that covers funeral expenses and debts, mortgage, monthly payments, and other living expenses. Especially if you’re the sole earner in your household, you’ll need a policy that covers as much as possible, so that you can leave behind enough money for your loved ones, who couldn’t survive without you.
How long do you need the policy?
This really focuses on how long after death does the premium pay out? And, how much time will your loved ones need your assistance for? So, you’re basically gauging how many years you’re going to leave money behind for, for your loved ones who are still living after you pass away. If you have young kids, you might need more than if you just have a spouse which is about the same age as you. In many cases, you will want to discuss your options with an insurer, to determine the best approach for choosing a policy and level of coverage.
Retirement funds you’ve set aside
Although this doesn’t really have to do with a life insurance policy, it will help you decide how much coverage you do have to buy, in the event you buy a life insurance policy. If you have saved accordingly, have retirement funds in place, and have a nest egg in place for your family, for when you’re no longer living, you might not need as much coverage as an individual who didn’t plan their retirement accordingly. So, the amount of time and planning you did while you were living, and the amount that you set aside in savings from your retirement, are also going to play a contributing role in the level and amount of life insurance you will have to purchase down the road eventually.
Obviously, you are also going to want to compare the top life insurance companies. If you are in good health this will help in reducing your monthly premiums as well. Discuss your options with an insurance agent, as they will help you decide on the right policy, the right level of coverage, and help you in understanding how much you should be paying each month for your premium rates. No matter where you are at in your life or what reasons you have chosen to buy a life insurance policy as a senior, these are some things to consider as you’re deciding on policies and coverage levels.