Insurance is a valuable thing to have that can protect you, your family, your home, your car, or your business. One of the most useful types of policy is life insurance. Should anything happen to you that causes your death, your beneficiaries will have coverage to pay your funeral costs and also to help care for them without your income. Life insurance costs are generally higher for people in poor health and tend to go up as the age of the insured increases. This raises the question of whether seniors can or should have life insurance.
Does Life Insurance for Seniors Exist?
Is life insurance for seniors worth it if it even exists? There are many companies that will underwrite life insurance policies for people up into their 80s. These include term and whole-life plans. They do become more expensive with age and some coverage may not be available past a particular age. There are enough kinds of policies that a senior who desires life insurance can get it.
What Types of Life Insurance for Seniors Are There?
When searching for senior life insurance, you will find that there are many kinds of policies. There are five basic kinds of coverage from which to choose.
- Final Expense Insurance – As the name implies, final expense insurance pays for the funeral, burial, cremation, or any other costs associated with the aftermath of your death. This can save your family considerable expense.
- Term Life – This kind of insurance pays benefits to the person you designate for a specified period of time known as a term.
- Whole Life – This type of policy pays benefits for the remainder of your life and also accumulates value over time.
- Universal Life – This kind of policy also pays for life and accumulates value. The difference from whole life is that the value is built through investments.
- Guaranteed Universal – This is a hybrid policy that pays benefits for life but does not accumulate value.
The rates for these kinds of coverage vary. Choosing the right kind depends upon your unique situation as well as what is affordable.
Is Life Insurance for Seniors Worth Having?
In the later stages of life, when costs tend to be higher and some coverages are not as full or not available, is it worth it for a senior to purchase life insurance? The answer to this is based on each individual’s unique situation. Generally speaking, insurance is good to have at any age. Funeral and other expenses that occur after you are deceased can be expensive and like any other price, they tend to increase over time. Final expense insurance can protect your loved ones from incurring a large debt. Policies that accumulate value can be very helpful in providing greater benefits to your loved ones as time goes on.
Life insurance for seniors is generally more expensive and the price goes up as the insured’s age increases. Nevertheless, for most seniors, a life insurance policy suited to their needs and situation is very worthwhile.