Finding the right life insurance policy when you are a senior can be tough. However, worthwhile coverage options exist for people over 60. Here’s all you need to know about shopping for life insurance as an older adult.
Do You Need Life Insurance?
Before you start shopping for a policy, make sure that a life insurance plan actually makes sense. If you have adequate savings and money set aside for final expenses, you likely don’t need a life insurance policy.
Here’s when a life insurance plan may make sense for you:
- You have a lot of outstanding debts.
- You support a spouse, child, or domestic partner.
- You want to cover your end-of-life expenses.
- You have a high net worth and don’t want your dependents to be burdened with your estate taxes.
- You want to leave behind an inheritance.
- You want to leave a sizable donation to a charity of your choice.
Types of Life Insurance for Seniors
Term life insurance: A term insurance plan is a good option if you want coverage but don’t want to spend too much money. Because term insurance is essentially temporary, it is a good option for covering debts and providing financial support to your loved ones. If you shop for term insurance in your 60s and 70s, you can opt for a 10-year or 20-year policy.
Whole life insurance: This type of policy offers lifetime coverage and builds cash value, as well. Whole life insurance is more expensive compared to term insurance, especially if you purchase it later in life. Still, it may be a good option for seniors who require long-term coverage.
Tips for Shopping for Life Insurance as A Senior
- Shop around: Compare death benefits and monthly premiums to make sure you’re getting the right plan for your financial goals and budget. When comparison shopping, it’s important to be honest about your medical history if you want to get an accurate quote.
- Read the fine print: Before you go ahead and sign on the dotted line, make a note of all the important details, including which causes of death are covered and which ones aren’t.