Best Life Insurance Policy Options For Seniors
Purchasing life insurance as a senior is an important investment, but it can be expensive. Fortunately, term life and guaranteed universal life (GUL) offer affordable premiums, guaranteed and personalized death benefit amounts, and optional riders. Compare these options as you choose the right coverage for your needs and budget.
Term Life Insurance
For the most coverage at the cheapest price, opt for a term life insurance policy. Term life insurance covers you for a set number of years. It includes a premium guarantee, which means you’ll pay the same monthly premium for the duration of the policy. Also, your beneficiaries will receive a guaranteed death benefit. This type of life insurance does not accumulate cash value.
You’ll get the best prices on term life insurance if you are in good health. In general, you may qualify for a 30-year policy until you’re age 55, a 20-year policy until age 65 and a 10-year policy until you’re age 80. Between the ages of 80 to 95, you can purchase a term life insurance policy in one-to-five-year increments, but the cost may be prohibitively high.
Guaranteed Universal Life (GUL)
Receive two positive guarantees when you purchase a GUL policy.
First, GUL policy premiums remain the same as long as you own a GUL policy. With this guarantee, you face no premium surprises and can budget for life insurance.
Second, you can purchase a GUL policy that provides a guaranteed death benefit of $25,000 to $10 million or more until you’re 120 years of age. You’ll gain peace of mind and life insurance coverage for the rest of your life.
Before selecting the GUL option, realize that seniors up to age 85 who apply for a new policy must undergo a physical exam. Otherwise, you’ll have to purchase a new GUL policy before you turn 80.
Optional Riders
You can add optional riders to your term or GUL insurance policy for an extra fee. These riders could cover long-term care and living expenses while you’re still alive. However, the death benefit your beneficiaries receive at the time of your death will be reduced by the amount of money you deduct when you’re alive.
Considerations
Before you buy life insurance, think about several factors.
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How much coverage do you need?
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For how long do you wish to be insured?
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How’s your health?
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Who would you like to receive your policy’s death benefit?
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Do you wish to add optional riders?
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What is your life insurance budget?
Both term and guaranteed universal life insurance policies offer affordable coverage with guaranteed benefits and meet your unique needs. For assistance choosing the right life insurance policy as a senior, talk to your insurance agent.