Life Insurance Guide for 55 Year Olds

Life is full of surprises of unpredictable events. As a result, when you are getting to the age of 55 years old and above, life insurance is a vital thing to have. You do not want to die and leave your family and children in financial problems.

Taking that step can be challenging, though. That is more so if you do not have the right information about this area.

In this article, you will find a comprehensive guide on what goes into life insurance for a senior at the age of 55.

Available Types of Life Insurance for 55 Year Olds

At such a delicate age, you have to try as much as possible and make the right decisions on anything you do. For life cover, you need the best type.

Term Life Insurance

It is a type of insurance in which you receive cover for a specific period of time. Once the term of insurance has expired, you can renew for another one in case you are still alive. If you do not die within that time, you do not receive any benefits.

However, in the case of death within the term, your beneficiaries will get the benefits.

Many insurers will be willing to provide a 30-year plan for seniors at the age of 50-55. If you are at 60-65, then you will most likely get an offer for a 20-year plan.

A term life cover is useful when you are not earning so much money at this time, and you are healthy. This is because it is the most affordable life protection policies.

Whole Life Insurance

It is a type of life protection plan in which you are covered for the rest of your life. In this type of coverage, as long as you pay your premiums, you will be insured. Death benefits are released to your beneficiaries upon your death.

Whole life insurance is more expensive than term life insurance. You will also have to pay the premiums for the rest of your life.

However, it is a great option when you want to leave excellent benefits for your family. In case you also have some investment obligations or debts that you would like covered upon your death, then it is the right choice.

Modified Whole Life Insurance

Modified whole life insurance is a cover that is almost the same as whole life insurance. However, for modified complete life cover, the premiums are modified.

For this type of policy, the premiums are not the same throughout the policy. Instead, you can have low premiums during the first few years of the plan. Towards the later years of the cover, the premiums start increasing.

In many cases, an insurer is willing to discuss a plan that will work best for you. You can have very low premiums for the first few 5 to 10 years. After that, the premiums will increase.

The main advantage is that you pay low premiums for the first up to 10 years, and it easy to personalize.

Funeral Insurance

Here is another good type of insurance you can take at 55 years old.

Death is inevitable. At the same time, funeral expenses are a must in your family. With their own needs to take care of, it may end up being a great burden for your family to handle once you pass away.

This is the easiest way to help them deal with all the funeral expenses upon your demise. Taking funeral insurance is not expensive. There are several plans from different companies that make sure you can get something that best works for you.

Funeral insurance policies vary depending on the benefits you are interested in. The higher the benefits you want for your funeral, the higher the premiums.

How to Save on Premium?

saving money on your life insurance for 55 year oldsOnce you have decided on the type of life protection policy, you would like to take, getting the right company to deal with can be a challenge.

Since premiums are one of the greatest obligations towards a life insurance policy, you have to make sure that you save as much as possible.

The first thing is to make sure that you shop for many companies. This allows you to compare all the companies and their rates hence getting the best and saving on premiums.

Another move is working with independent insurance agents. Since a specific insurance company does not employ them, they are in a position to walk you through different insurers and give you the best. They always know which one is better for you.

Factors Affect the Cost

Several things will affect the cost of any insurance policy. The first thing is about your health condition. When you are suffering from a severe condition, then you are considered a high-risk client. As a result, your premiums cost more.

The type of policy will also affect the cost of premiums. Not all types cost the same based on how long they last and the benefits you will be getting in the end.

The type of insurer you are working with. You will always find different companies to quote the different costs of premiums for various policies. To make sure that you get the best deal, you should consider visiting multiple companies.

Things to Consider

The following are things you should always consider before taking any life insurance policy.

Compare Costs

Do not be in a rush, unless you want to pay so much for the premiums.

The first insurer you come across is not the best there is in the market. Always take your time when sourcing for an insurance provider.

Since different companies have different rates, ensure that you compare different companies and their costs. Look at their conditions and relating benefits and compare them with the prices.

Comparing the costs of different insurers is the best way to come across an affordable provider who will suit you.

At the same time, look at your budget and make sure that you are getting a policy that you can manage. Look at overall premiums and make sure you can afford it.

Medical Exam

A medical exam is an obstacle for so many people who are interested in taking life protection cover.

Are you ready for a medical exam? If you have something you have to hide, then you better be prepared for the medical exam.

All insurers will be interested in taking you through a medical exam. You need to have the best results when going for an exam. There are several steps to take towards making sure that you pass the medical exam.

Ensure that you talk to an insurance agent for a guide on various steps to take to enable you to pass the medical exam.

Information Required

Do you know about the information required by the insurer before sending your application? Do you know of the required information after you are pre-approved for the cover?

These are necessary things to consider to make sure that you are always prepared for all the steps.

In many cases, if it is your first time applying for an insurance cover, you may find the details required by the insurance many.

In other cases, you may be required to go back and get the right documents or records.

To avoid all this struggle, make sure that you have talked to your insurance agent. By doing this, you will get enough information on what you need to get ready for the process.

How to Apply?

When applying for a life insurance policy, the best option is to work with an agent. Visit an insurance agent when you are interested in a specific type of policy for more details on how to do it.

An insurance agent will help you in filling the application details. An agent will also be useful to give you directions on all the records you need to have when applying for a life cover.

Another advantage of working with an insurer is that he/she will help you get pre-qualified quickly.

You can also make an online application. This is because many companies are offering online application systems to make things easier for their customers.

Final Take

Life insurance primarily for people at the age of 55 is a crucial step that you should consider taking. You also have to note that a life cover is something you will have for several years of your life.

As a result, it is always necessary to take time before going on with it. Make sure that you have done as much research as possible. Get an advisor when you are not sure of details.

Linda Chavez

I'm a burial & senior life insurance expert, independent agent, Founder & CEO of Seniors Life Insurance Finder. I have been working in this sector since 2004 and established my own company in 2014. I have a team of seven members, and we are trying hard to share the knowledge we've gathered. We know how difficult often it is to find an affordable policy. Hence, we are doing our best to help you.