Which One is the Best Type Life Insurance for Seniors?

Many people think their life insurance options become limited once they turn 50. Others believe firmly that any policies available to them will be expensive.

When in reality numerous plans are geared towards seniors. There isn’t anyone policy that you can term the best one for you if you fall in the 50 to 60 age bracket.

While choosing the right policy, you have to keep in mind your unique needs and wants.

Thus, before you start shopping for life insurance, you should get a complete idea of what you wish to achieve:

Life Insurance Options Available to Seniors

There are many options available to seniors that they can choose from in order to provide protection to their loved ones, even after they leave this world.

Term Life Insurance

This type of insurance is suitable for people with few or no health problems who want consistency in their premiums. There is a death benefit your family members are eligible for in case you pass away during the life of the insurance. The term life insurance policy extends for a particular number of years (usually 5 to 10).

While this type of insurance is suitable for people that want coverage enough to extend till a particular time period, it isn’t for everyone. This is because if you outlive the term of your policy, you might want to look for other options.

One common way to solve this issue is to convert your term insurance into whole life insurance at the end.

Whole Life Insurance

This type of insurance is thought to be more convenient as it extends throughout the lifetime of a person. The premiums stay the same in order to promote consistency. There is also a cash value benefit that gets you to access to funds in case of an emergency. However, the amount of the death benefit will also decrease by the amount you withdraw.

The only reason why some seniors do not choose this policy is that whole life insurance is comparatively more expensive. The Guaranteed Acceptance Policy is a type of whole life insurance and is extremely popular amongst seniors.

Final Expense Insurance

In case you do not have considerable debt or loved ones to financially support, you should opt for this coverage.

This policy only offers a death benefit that is enough to take care of any medical expenses or funeral expenses. This particular benefit ranges from $5,000 up to $50,000. There are no stringent requirements to become eligible for this type of plan. This means you do not have to be in perfect health to be eligible for final expense insurance even after 85 years.

Moreover, with this plan, you give your loved ones a chance to truly grieve your loss rather than stressing over the funeral and other expenses.

Universal Life Insurance

The most important feature of this kind of insurance is that it has a cash value. However, the policy carries a great deal of risk as the benefit you receive depends on the performance of investments. This policy is a non-conventional type of life insurance and might not be suitable for every senior.

People who would like to invest their money in a platform that offers them protection, as well as a chance to witness its value grow, would prefer this option.

So, Which One is the Best?

Since Universal life insurance holds less consistency, seniors tend to avoid such surprises in their coverage plan. The final expense insurance policy is not suitable for every individual since it will not be sufficient to cover your debts. If you have debt under your name or have a dependent, this type of insurance will not suffice and might even result in your loved ones worrying about their finances.

Term life insurance has a lot of restrictions since it is only viable for a particular time period. The limitations regarding the term of the plan can prove to be a problem for many seniors as they do not wish to renew their plan again and again. The whole life insurance is thus the best life insurance plan for seniors.

Guaranteed acceptance life insurance plan which falls under the whole insurance category is the most popular. This is because there are fewer standards to meet. This plan does not require the person applying to undergo extensive medical tests and provide information.

Moreover, the plan is available for seniors in different age brackets. Some providers also offer Guaranteed Acceptance Life Insurance to people who are 80 years old. This, combined with a fixed and convenient coverage plan, makes Guaranteed Acceptance Life Insurance the best option available to seniors.

How to Choose the Right Life Insurance Policy

It is true that there isn’t a single answer to which policy is the best for seniors. Depending on your needs and wants, the answer may vary. Thus, before you decide on one particular coverage plan, you should carry out an analysis of your needs and wants.

Find out exactly what kind of protection you would like to extend for your family members. Ask your loved ones for suggestions and also seek help from an insurance agent. An agent can help you clarify your doubts and advise on the right option for your case.

Bottom Line

The fact that most options available to seniors come with fixed premiums gives them the confidence they need at this stage. Thinking that you cannot provide financial support to your loved ones can be a difficult experience.

You should know that you have many policies to choose from, regardless of your age and health. Getting help from an insurance agent can make the process of applying for life insurance smoother and more convenient.

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.