Life Insurance for Seniors: Three Options for Coverage

Finding a company that offers affordable senior life insurance can be challenging. Life insurance companies decide on monthly premiums based on overall risk factors; because life insurance for seniors typically is associated with higher risk, the premiums are also higher. For older people who have experienced significant health problems in the past, it may prove difficult to obtain life insurance coverage at any price because insurance companies may regard them as being too high a risk from an actuarial standpoint.

Guaranteed Acceptance Plans

Some companies offer life insurance policies with no medical examination required; these senior citizen life insurance policies are also known as guaranteed acceptance plans and typically require much higher premiums. However, for seniors who have serious or multiple risk factors due to past or present health conditions, purchasing life insurance coverage from a specialized senior life insurance company can provide peace of mind.

Senior Term Life Insurance

Senior term life insurance is another option for older individuals who may need to ensure their family’s security for a limited amount of time. Term life insurance policies are written for a specific period of time, typically between five and thirty years, and pay full benefits if the policyholder dies within this period. Senior term life insurance is one of the least expensive ways for older people to protect their families, but may not be available to those with significant medical problems or ongoing health concerns.

Traditional Life Insurance for Seniors

It can be difficult for older people to qualify for traditional indemnity policies due to the increased risk factors associated with advanced age; however, these policies offer the most protection, since they usually renew automatically each year regardless of the policyholder’s state of health. For those who qualify for and can afford these life insurance policies, the benefits they pay to surviving beneficiaries can provide much needed security to seniors.

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