Life Insurance for seniors, Product Types and Best Options

For most of our young life, we are energetic, full of life, and more likely to avoid life insurance. After all, why would we be so pessimistic in the prime of our lives? Unfortunately, this period flies past fast, and all we are left with are frail bodies and frequent trips to the doctor. Life insurance coverage becomes a necessity at this time.

Seniors encounter countless health problems, and their morbidity risks are elevated. For this reason, it might be difficult for this section of the population to acquire a life insurance policy. Usually, an insurer assumes the risk of the policyholder and is supposed to compensate for the moment something bad like a death happens. Therefore, underwriting a policyholder who might die at any moment is quite risky. This explains why some insurers deny insurance for some seniors. 

This is not to say that seniors cannot access life insurance coverage. In the US, a great number of insurers offer coverage to seniors as old as 80 years old. It is upon the senior to find the insurer with the most suitable policy which caters to one’s specific needs at a cost that one can comfortably shoulder. To be sure, seniors find it hard to access life insurance coverage due to their age. At that age, most seniors are not of good health. Also, some seniors might have pre-existing conditions that could be chronic. Nonetheless, insurance coverage is available, and this article will show you how to access the cover.

Product types for seniors’ life insurance

Senior citizens in the US can access Medicare and Medicaid programs run by the federal government. Notably, Medicare is divided into four parts, where each part ensures a specific healthcare need. The first part takes care of hospital insurance. In particular, this covers home healthcare as well as hospitalization. 

The second part of Medicare includes medical insurance. Here, visits to the doctor and X-rays are covered. However, this plan is premium, unlike the first part, which is free. The third part of Medicare provides better care, but it comes at a higher cost. Lastly, part four of Medicare includes coverage for prescription drugs.  Make sure you take the time to research what medicare covers to make sure you make the best choice.

Nonetheless, seniors have the option of opting for private insurers for a wider scope of coverage. The private sector provides various types of coverage which include:

  • Term life insurance coverage

Term life insurance, as the name suggests, offers coverage for a given period of years. For seniors, the most popular term is ten years. This type of insurance is cheaper in terms of premiums payable. However, this coverage might be pocket-friendly but does not come with any cash value.

  • Whole life insurance coverage

As long as you pay the premiums, you can enjoy this coverage for the whole period of your life. Additionally, this coverage comes with the possibility of growing cash value.  However, the premiums payable here are much higher.

  • Universal life insurance coverage

This policy operates more like the whole life policy in that it is permanent. The difference here is that the policyholder can vary the premiums payable. In addition to securing your life, this product type could be a means of saving.  

  • Final expense insurance coverage

This one is a kind of proactive planning where you take care of your funeral expenses early on. The point is to take away as much burden as possible from your dependents. As such, this product type offers to offset expenses during your final sendoff. This tends to be the best type of coverage for seniors over 50.

Best options

The product type, which is the best option depends on what you want and your ability to pay the premiums. Luckily, there are numerous online platforms where you can compare quotes. The benefits of such platforms are that you will be able to find the most affordable and convenient insurer according to your needs. Also, such platforms enable a potential policyholder to see reviews about certain product types. The information is critical in ensuring that one chooses the best coverage option. Some of the best coverage options for seniors include:

  • Guaranteed universal life insurance coverage

In principle, this product is similar to whole life insurance coverage. Just like whole life insurance, one is able to grow a cash value for as long as the policy is active. However, the difference comes in the cost of premiums. A policyholder will pay far cheaper premiums in guaranteed universal life insurance coverage as compared to whole life insurance. If you want to help offset your final expenses without having to take the final expenses insurance, this is the option for you.  

  • Term life insurance coverage

This policy is ideal for seniors who are certain they will not last past a given period, say ten years. The most attractive aspect of this option is that it is the most affordable. Also, policyholders have the option of converting the policy to permanent coverage. As a downside, a policyholder’s dependents do not get anything in terms of compensation from the underwriter in case the policyholder dies after the expiry of the term covered in the policy.  

Speak with a professional 

At the end of the day, you’re going to want to work with someone who can help you navigate the deep waters that come with shopping for life insurance. Working with an independent agent is the best way to get that done. 

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