Even younger adults should purchase life insurance coverage, whether they opt for term, universal or another option. For those who did not buy while they were young, however, life insurance is still a necessity.
Many older Americans go without life insurance because they assume they won’t be accepted or that they can’t find an affordable option. However, whether you are shopping for yourself or are looking for coverage for your older parents, you should know there are still plenty of great options out there.
What are the Top Cheap Life Insurance Options as a Senior?
There are a few different types of life insurance policies out there. To find the best one for you or your parent, it’s a good idea to get a basic understanding of the choices available. These are four of the life insurance options available for senior citizens.
Term Life Insurance
10 year, 20 year or 30 year term insurance is a popular choice among younger Americans, but it’s not always the first choice for seniors. These are a few things you should know about this option:
- Coverage amounts are usually higher, so this is one of the choices for those who are looking for higher levels of coverage.
- Coverage expires when the term ends; this can leave older senior citizens who outlive their policies looking for coverage when it will cost them more than ever.
- Health questions and exams are usually required; this can help healthy older adults find lower rates but can be a challenge for those who aren’t in the best of health.
- Term is usually only an option for senior citizens who are 70 years old or younger. Most providers do not offer options for those who are older than 70.
Whole Life Insurance
This option provides coverage for the rest of you or your loved one’s life. These are a few things you will probably want to know about this type of coverage:
- The policy will earn cash value, which the insured can borrow later on if needed.
- This type of coverage usually requires a health exam.
- Coverage can be more costly than other options.
Guaranteed Acceptance Life Insurance
Guaranteed acceptance life insurance is a top choice for a lot of older senior citizens. These are a few of the main things you should know before purchasing this type of coverage:
- The insurance provider cannot turn down any senior citizen who fits the age requirement, which varies by company.
- Coverage can be much more expensive.
- There is no medical exam or health question requirement.
- Coverage usually comes with a 24-month waiting period, which means that if you or your parent dies during this waiting period, no money will be paid out at the time of death.
This type of life insurance is one of the most popular choices out there for most senior citizens. These are a few reasons why:
- Underwriting requirements are usually easier, and insurers don’t usually mind mild to moderate health conditions.
- Coverage can be much more affordable.
- Payout amounts are generally somewhat small.
- Many burial insurance policies do not have a waiting period. This means there is full coverage from the first day the policy is active, which means you don’t have to worry about the beneficiary being left without a payout if death occurs.
Overall, choosing life insurance coverage for yourself or your parent is a personal decision, and it does depend on a few factors. If you or your parent are still a little younger and are in good health, it doesn’t hurt to try for a term option if you want a higher coverage amount with a lower premium. For most senior citizens, however, burial coverage is the top choice due to the reasonable rates, the lack of waiting period and the ease of approval.
Top Life Insurance Providers for Seniors
- AARP Life Insurance
- Globe Life Insurance
- Colonial Penn
- Mutual of Omaha
How to Buy Over Age 60, Over Age 70 or Over Age 80 Life Insurance
Shopping for coverage can be tough, but it’s easy nowadays with the help of our online quotes finder. You can get instant quotes for premiums from all of the top companies in the business, and whether you are looking to buy guaranteed acceptance, final expense or any other type of coverage, you’re sure to find a lot of great options. Plus, not only can you compare pricing, but you can also get started on your application right away.