What is the Best Life Insurance for Seniors?

March 28, 2018

Life insurance can provide valuable protection and financial peace of mind for your loved ones, regardless of your age or what stage of life you are in. Senior citizens may know they need life insurance coverage but aren’t sure where to start the process of buying an insurance policy. There are affordable insurance options for many seniors. In this blog post, we will explore some common reasons seniors need life insurance coverage, provide tips on how to find affordable policies, and introduce common life insurance options for seniors.

Why Senior Citizens May Need Life Insurance

Retired seniors generally do not need life insurance protection to replace their income and may not need it to provide funds to pay off a mortgage loan. However, there are several other reasons seniors may consider purchasing coverage:

  • Final expenses – One of the most common uses for life insurance for seniors is to provide a ready source of cash to cover the costs of dying. Final medical expenses, the cost of a funeral or memorial service, and burial or cremation can add up. Final expense insurance can mean your loved ones won’t need to worry about how to pay those expenses.
  • Pay off debts – Life insurance can also be an easy way to provide funds to pay any financial obligations you may be leaving, providing resources for your loved ones to use to satisfy debts.
  • Create a legacy – The proceeds from a life insurance policy can also help you leave a financial legacy for your children, grandchildren, and/or the charitable organizations that are near and dear to your heart.
  • Tax planning – If your estate may be subject to federal and/or state estate taxes, life insurance can provide liquid assets to pay those taxes.
  • Provide for loved ones – Many seniors have remarried later in life but still want to make sure children from previous marriages will receive an inheritance. Buying a life insurance policy and naming those children as the primary beneficiary can make sure both your current spouse and children are provided for when you die.

Tips for Getting Affordable Rates on Life Insurance as a Senior

Premiums for life insurance are based in large part on the applicant’s age; if you are buying a policy as a senior, you can expect to pay more for coverage than a younger person with a similar health profile would pay.

You can keep your cost affordable by doing what you can to live a healthy lifestyle and applying for coverage as soon as possible. It can also help to compare quotes from different insurance companies and for different types of policies.

Types of Life Insurance for Seniors

Some term insurance policies will not be an option for seniors, however there are still many other types of policies seniors can choose from. Universal life policies provide premium flexibility and the ability to fund a cash value account inside the policy.

As the name implies, final expense coverage is designed to provide the funds your loved ones need to cover your final expenses.

Term insurance will generally be the most affordable type of coverage. However, some policies will not be available to seniors. And, it’s important to remember that when you buy term insurance, you are essentially renting coverage for the policy’s term. Because of that, term insurance may not make sense for many seniors who need coverage to be there when they die – even if that’s outside the initial policy term.

While annuities are outside the scope of this article, they are another option that may make sense for some seniors.

If you are a Senior Who Needs Life Insurance, Symmetry Financial Group Can Help!

At Symmetry Financial Group, we work with seniors every day, helping them find and compare options for life insurance coverage. To learn more and to obtain a quote contact us today.


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