What Is The Right Life Insurance For Seniors?

Life insurance is usually spoken about in the context of people in their twenties to forties. This is the ideal age to get life insurance, especially for those who are the breadwinners of families. It is also cheaper to get life insurance the younger you are, as you are at low risk.

However, some people miss out on the opportunity to get life insurance at a young age, whether for financial reasons or a lack of information. As a senior, which type of life insurance is right for you? Can you even get life insurance?

Can you get life insurance as a senior?

Many people believe that life insurance is not available to seniors. But the reality is that, depending on your age and the type of life insurance you want to get, there may be a policy for you. ‘Senior’ is a fairly vague term which means different things to different people. Let’s look at the ages at which life insurance is available.

There are two common types of life insurance: whole life insurance and term life insurance. Whole life insurance covers a person until the day they die (or stop making payments). Term life insurance, on the other hand, is only meant to last for a specific period of time. Most people go for a twenty year term. It is the latter which usually helps those financially dependent on the individual.

Whole life insurance acts more like an investment, as your premiums add up and you eventually get them back. It is therefore possible to get whole life insurance until the age of ninety with many insurers.

Since term life insurance is not meant to cover a person until the end of their life, the options are more limited. You can get term life insurance at the age of seventy-five, but will get a fifteen year term at most. Some insurers may have the option of getting five to ten year terms at older ages.

Should you get life insurance as a senior?

Unless you're in your nineties, you can get one or another type of life insurance. However, is it actually worth it? This depends on your specific circumstances.

Some seniors still have dependents who rely on their income. This may be due to having children at a late age, having children who struggle to find employment, having loved ones who are unable to care for themselves, and a range of other reasons. If this is true for you, life insurance may be necessary to keep your loved ones financially afloat in the case of your death.

Many seniors, however, are not earning an income. As such, their death will not have too much of a financial impact on their loved ones. In this case, getting life insurance as a senior is probably not necessary, especially if you are trying to get term life insurance.

Since whole life insurance acts as a kind of investment, it can be worthwhile getting it at any age. But when you are a senior, you need to think about cost as well.

Is life insurance worth it as a senior?

As mentioned, if you have dependents who rely on your income, term life insurance may well be necessary. If not, life insurance may not be worth it. This is not just because it is not needed by your loved ones, but because getting it as a senior is extremely expensive.

Since you are considered high risk, premiums are priced accordingly. You will pay many times more than what you would have paid ten or twenty years ago. Whereas a policy started at a younger age would have secured you a lower premium, starting a policy now will come at a cost, even if you are healthy.

Life insurance is not an easy option for most seniors to choose. There are cases when it is necessary, but it will be expensive regardless.