Best Senior Life Insurance Options
If you have put off getting life insurance and are worried that it is too late, rest assured it is not. Perhaps you have life insurance but you are sure you could get a better deal. You are right. Most life insurance plans offer some type of compensation to your survivors as well as covering funeral expenses. However, choosing among the different types of life insurance packages, especially if you are over 50, can be difficult. Where do you start? And how much life insurance is enough?
Several life insurance companies have emerged over the years to especially cater to seniors and the specific issues concerning those who are retired and on a fixed income. These companies emerged out of a need for senior specific insurance plans because seniors were finding themselves refused plans, or they had to suffer unfair policies and penalties because of their age. Use this quick reference to help you decide on the best policy for you. Make sure to review any that are of interest to you and make sure you understand all the details of the policy. Several life insurance companies offering special life insurance plans for seniors are listed below to get you started on your search.
What type of life insurance policy do you need?
Just like auto or health insurance policies there are many types to choose from. Which policy you choose depends on what type of coverage you need and what you want to go to your survivors after you pass away. Here are the basic types and a quick overview:
Whole Life Insurance Policy: This policy is good for as long as you live and never expires or needs to be renewed. If you are someone who likes to be hands-off with financial aspects, then this may be the best policy for you. Additionally, some whole life insurance policies allow you to borrow against the amount you have in the account in the event of emergencies.
Term Life Insurance Policy: This type of policy is issued for a set amount of time, called a term. If you outlive the “term” of the policy, then you must renew it otherwise there is no payout if you pass away. As a retiree you may be drawn to this type because it is often cheaper. If you do so, make sure the term you select is long enough that you will not outlive the policy. This one can be a bit of a gamble.
Universal Life Insurance Policy: If whole life insurance is too pricey for you, then this is the next best type of policy. It does not accrue in value over time like the whole life policy, and you cannot borrow against it, but it is good for as long as you live. The only catch for most agencies is that you must be responsible to pay the premium without fail each month, otherwise is may be cancelled immediately.
Top 7 Senior Life Insurance Companies
The following companies all offer senior discounted life insurance policies. Most of these agencies specialize in offering reasonable policies to seniors, and a few are all inclusive. Take the time to review each agency you feel best fits your needs, going to their website, and then scheduling a time to speak with an agent directly by phone. It is to your benefit to compare at least three or more companies, and to let each of them know you are collecting quotes.
Mutual of Omaha
Mutual of Omaha has been around for a long time. Many years ago they shifted their attention to providing coverage to seniors. Their plan offers term life insurance with the option to extend it each year after you turn 80. You can do this extension until you reach the age of 95 at which point you can convert the plan into a different policy. Most pay around $40 a month for the policy.
Fidelity Life is a company that was developed exclusively to serve senior citizens. When looking at their life insurance packages two of the best are the RAPIDecision Senior Life Term and the RAPIDecision Senior Whole Life. If you are over 50 years of age, then you are considered a senior with this company. Expect to pay around $55 a month.
Principal Life offers both the term and whole life insurance options. They invest your premiums to grow your fund, must like an index fund. As a result, you can expect to pay a little more at $70 a month.
Transamerica is one of the most affordable life insurance options for seniors. They only offer term policies, but you can select your term in 10 year increments. Once you reach the term, you can extend it. Expect to pay around $35 a month.
AIG Life Insurance customizes each policy to fit the lifestyle and budget of the senior who applies. This business model has won it a solid reputation for fairness and affordability. Expect to pay around $40 a month for most policies.
Haven Life is the senior life insurance division of the larger company called MassMututal. While this company offers a tremendous number of benefits for policy holders, the catch is that you must apply for the policy prior to turning 65 years of age.
Globe Life Insurance
Globe Life Insurance has a floating rate chart from which they assign your monthly premium. Their rates are based on your age. Their largest gimmick is to offer coverage for only a dollar, but that is just for the first month. After that you must pay the amount indicated on the chart. Still, it is affordable and offers most of the basics you would want in a policy.