Term life insurance has traditionally been a popular choice for younger people, primarily because it can often allow them to buy a lot of coverage for relatively low premiums. It can also be a good choice for those who are still paying off a mortgage, have dependent children at home, or for spouses that depend on two paychecks to make ends meet. But what about term life insurance for senior citizens?
Seniors, people over 65, often overlook term life insurance. While they may have different life insurance needs than a younger adult, but some of the goals are still the same.
Benefits of term life insurance
One of the key benefits of term life insurance is that it can be more affordable compared to whole life policies. This can make them a good choice if you're a senior in good health and looking to buy life insurance with lower rates than whole life or another type of permanent* policy.
Another benefit is their flexibility. Many insurance providers offer a choice of term benefit limits (some carriers as low as $10,000), term lengths (as short as 10-years), and additional policy riders to enhance your coverage. This flexibility allows you to select a policy based on the amount and length of coverage you need. If you're a senior looking for options to cover final expenses and outstanding medical bills while leaving something for your children or grandchildren, a term policy may be a good option.
Considerations when buying term life insurance
Health can be a factor when it comes to securing affordable life insurance. For this reason, many seniors who have health concerns may experience difficulty in getting approved for coverage. And considering that many seniors may not have a need to buy as much life insurance as their younger counterparts, having a smaller term policy can be a good choice if a larger policy is unattainable. Fortunately, there are many different policy types, and the best way to select a policy is to discuss your many options with a qualified life insurance professional.
*As long as required premium payments are timely made.