Retirement Planning

Is Term Life Insurance a Good Choice for Seniors?

Term life insurance could be a good option for people over 65 as there are some benefits to this type of policy that should be considered. Always look for the policy that is the best fit for you.

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?

People 65 and over often overlook term life insurance. What they may not know is that there are many benefits to having a term life insurance policy that should be considered.

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 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, outstanding medical bills, or leave something for your children or grandchildren, a term policy may allow you to buy as little or as much as you need, for as long as you want it. However, 30 years is typically the longest term offered by most carriers and $10,000 is generally the minimum face amount.   

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 for $10,000, $15,000, or $20,000 can be a good choice if a larger policy is unattainable. 

Depending on your needs, you may find that a term life policy is not the best choice for you. Fortunately, there are many different policy types that might be a better fit. The best way to select a policy is to discuss your many options with a qualified life insurance professional.

For more information regarding types of life insurance, visit our learning center.

*As long as required premium payments are timely made.

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Protective Life insurance Company and its subsidiaries do not currently offer Term Life Insurance products.

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

Life Insurance

Seniors, people over 65, may have different life insurance needs than a younger adult, but some of the goals are still the same. This article highlights considerations and explores how term life insurance may still be an option to consider. For more information, visit our learning center.

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