How to Find the Best Life Insurance for Seniors and Keep Survivors Out of Debt

best Life insurance for seniors insurance geek

Finding the best life insurance rates for seniors might seem hard to achieve – that is unless you know where to find coverage to fit specific needs at an affordable rate.

The truth is that senior clients can have some strikes against them when applying for life insurance. These issues will often include age and/or having an adverse health condition.

But there are some insurance carriers that offer coverage for applicants who are in their 60s, 70’s and even in their 80s at the time of the application.

If you’re worried, don’t. Having an Insurance Geek on your side can help you to narrow down the best carriers for senior life insurance, as well as provide quotes so that you know what to expect.

Why does a senior need life insurance

There are many reasons why a senior needs life insurance. These can include making sure that survivors are able to pay off debt, replace lost retirement income (particularly if pension income stops at the death of the insured), or even to donate to a favorite charity.

In addition, many seniors want to ensure that funeral and other final expenses can be paid, without loved ones having to dip into savings in order to cover these costs.

Is term life insurance for seniors a good option?

While everyone’s financial goals are different, there are some viable reasons why term life insurance may be a good fit for seniors.

For instance, because term insurance offers death benefit protection only (without a cash value component), it can be much more affordable than a comparable permanent life insurance plan.

But the disadvantage of term life insurance for a senior is you can outlive the term, and the policy would expire worthless, leaving you with no coverage.

When a senior buys a term life insurance policy, the first thing they look at is the conversion guidelines.

Conversion options are important because you do not have to prove insurability when converting from a term to a permanent policy. So if you get sick and your term is about to expire, you can convert it to a permanent plan.

For instance, if the plan is not convertible to a permanent insurance policy, the insured – and his or her survivors – could be left “stranded” without financial protection if the insured survives throughout the entire length of the policy. Worse yet, it could be that they are no longer insurable due to age and health at that time.

Seniors should consider riders on a term policy

In your 60’s rider are more crucial than ever — riders such as critical and chronic illness riders.

How do these benefits work?

Critical Illness

The Critical Illness rider gives you the option to accelerate a portion of your death benefit while you’re still living if you are diagnosed with:

  • Heart attack
  • Stroke
  • Cancer
  • Renal failure
  • Major organ transplant
  • ALS

Chronic Illness

The Chronic Illness rider gives you the option to accelerate a portion of your death benefit early if a Physician certifies you as being unable to perform at least two ADLs or activities of daily living such as:

  • Bathing
  • Continence
  • Dressing
  • Eating
  • Toileting
  • Transferring
  • Or if you require substantial supervision due to severe cognitive impairment.

Adding these riders cost pennies compared to what one of these conditions would cost you out of pocket.  These are excellent riders and become even more available over the last few years.

An Insurance Geek can easily and quickly help you compare all these options and make sure you get the best policy.