Term Life Insurance For Seniors

Term life insurance may be the most popular type of life insurance, particularly among younger people. Indeed, term life insurance can be ideal for mortgage holders and parents whose children will later attend college. Meanwhile, senior citizens often opt for other types of life insurance that they feel are better suited to their circumstances. Senior citizens and their children can benefit from exploring term life insurance options and determining whether they might actually be a preferable form of insurance for individuals in this age group.

Benefits of Term Life Insurance for Seniors

Term life policies are often higher than others. In fact, term life insurance values below $50,000 are unusual. For individuals who need a policy that is larger than average, this can be a major benefit of term life insurance options. Compared to whole life policies, term life insurance policies are often more affordable. Many people are surprised when they first encounter the low rates that are available with these policies. Flexibility is often greater with term life insurance because the coverage amount, payment amount and term length vary considerably. Depending on individual needs, different amounts of coverage and lengths of terms may be preferable.

Downsides of Term Life Insurance for Seniors

Health status is often a focal point for insurance companies that issue term life insurance policies. Unfortunately, this can mean that seniors with poor health may encounter more problems getting approved. In addition, the underwriting process can be complex and lengthy. Seniors older than 80 will not be able to get term life insurance from many companies. Still, some insurers are happy to work with older individuals who are basically healthy. Major coverage is often unnecessary or undesirable for seniors. Unfortunately, smaller amounts of coverage cannot always be found. In these cases, individuals may want to consider looking into less costly insurance options with reduced coverage. When seniors have good general health and are comfortable spending a bit more for term life insurance, this option may be ideal. However, term life insurance is often less suited to older people than other choices. For example, burial insurance is one option that seniors can explore. You can use our search tool to find out about term life insurance rates available for older individuals in your area.