Term Life Insurance for Seniors

Four Types of Term Life Insurance

Senior Citizen term life insurance is a valuable option but should be planned carefully. There are four types of term insurance:

  • Term insurance that lets you sign up for coverage without a medical exam, however you should expect higher premiums. There are some insurance companies that will require a medical exam and base their prices on both your health and your age so be wary of those companies as you’ll find plenty of them that are competing for your business and won’t base your coverage on a physical at all.

  • Level Term insurance allows you to pay the same premium every year for the full term of the policy with no change of benefits for the life of the policy. There is the catch of renewal rates increasing drastically, in many cases, when it’s time for renewal.
  • Convertible term insurance lets you convert the policy into a permanent one at any time. There’s no medical exam, but premiums may go up.
  • Decreasing term insurance pays a death benefit that decreases over time, but payments are usually the same.

As you can see there are differences with pros and cons for all types of term insurance You’ll need to ask questions to be sure of the long term implications and to verify that the policy will meet the needs as you intend them. Keep notes on paper before you speak with someone about the different options, what it is that you need the insurance for and what you expect the end results to be. Bring those questions up for discussion and seek explanations about policies until you feel comfortable that you fully understand and can make a reasonable choice.  Then call the next company and go through the same process until you have enough choices to make a reasonable decision.

Look Carefully at Renewal Requirements

Be sure to ask about the renewal requirements. You may have gotten a term or level term policy without a physical, however one may well be required when the policy expires and attempts are made to renew. Many also allow for only one term life policy to be active regardless of who the original policy holder is. So again, determine what you feel you need before starting to shop around.

A couple of considerations include purposes for different kinds of insurance policies.  Term insurance, for example, is frequently considered a good kind of plan to ensure that burial expenses are completely covered. Inflation may cause a whole life policy to no longer be enough for a surviving partner to live on and pay the funeral expenses, and thus becomes a serious consideration in evaluating plans.

It is wise to talk about this issue with family members or whomever will be responsible for managing the proceeds of the insurance plan when that time comes.