If you think you’re past the age of getting a life insurance policy, you’re probably wrong. After all, as the Quantitative Society for Pensions and Savings states, the peak age for getting life insurance is in the late sixties.
However, choosing the right life insurance policy or company becomes a tad bit difficult for a senior than a younger person. There is no denying that your life circumstances have changed, and you have a lot more things to take into account than someone who’s probably in his thirties.
Besides, it’s not about finding any company and picking any senior life insurance plan. You need to select the right one to derive the maximum benefits from it.
It sounds like a lot of pressure, right? Well, it’s not if you can just keep a few things in mind before selecting life insurance.
- 1 Here are five tips that will be helpful in finding good life insurance as a senior.
- 1.1 #1. Hire an Experienced and Knowledgeable Insurance Broker
- 1.2 #2. Thoroughly Research Your Options before Coming to a Conclusion
- 1.3 #3. Consider the Riders to Your Life Insurance Policy to Make It Effective
- 1.4 #4. Consider All the Aspects of Your Present Life Condition
- 1.5 #5. Do Not Fall for the Marketing Tricks and Gimmicks
Here are five tips that will be helpful in finding good life insurance as a senior.
#1. Hire an Experienced and Knowledgeable Insurance Broker
An insurance broker will help you identify and understand the risks you face and help you find products that will manage those risks the best. An insurance broker’s role is different from that of an agent who works for a particular company.
The insurance brokers have a contract to authorize them in buying a policy for you from a particular company, but they work for you.
It’s okay to go for an agent if you are sure that you want to buy the policy from a particular company. But, you should go for a broker if you haven’t decided on any company yet.
Keep these three factors in mind when hiring an insurance broker:
- They should know about serving senior clients like you, and there’s nothing to hesitate in asking about their previous experience.
- You will have to discuss your aims about the policy in clear terms to suggest the right plan for you.
- Make sure that the broker is registered. Ask them to show you the necessary credentials.
Once you have selected your broker, it’s time to move on to the other steps.
#2. Thoroughly Research Your Options before Coming to a Conclusion
You will have a broker with you to guide you about choosing the right life insurance, but you should try to gather some knowledge about the options you have.
The first thing that you need to know is the different types of insurance that you can avail of. As a senior citizen, you can opt for the term, guaranteed universal, final expenses, whole, or universal life insurance.
Each of these types comes with their pros and cons, and understanding the distinction is crucial. For instance, seniors might opt for term life insurance because it helps avoid higher premiums while offering adequate coverage.
On the other hand, insurance for final expenses makes sense to almost all seniors because it secures funds for medical bills and funeral expenses.
The next thing that you need to research is about the insurance companies that your broker has suggested. These days you will find all the information you need on the official websites of the companies. Compare the policies and their features as offered by different companies, and go through the reviews.
#3. Consider the Riders to Your Life Insurance Policy to Make It Effective
Life insurance riders are the additional benefits that come with your contract. Seniors frequently ignore the riders, which turn out financially devastating under certain unforeseen situations.
When you decide on which life insurance company to go for, look at the riders available with their specific policies. For instance, the accelerated death benefit is the most common rider. It lets you accelerate a part of the death benefit if you’re diagnosed with a terminal or chronic illness.
There are other common riders, as well, that seniors should consider:
- Children’s term: It lets you provide life insurance for a grandchild (or child) on your policy.
- Accidental death: The death benefits are increased (doubled in most cases) if the death is a result of an accident.
- Premium waiver: It gives the option to waive premiums under the circumstances, like disability.
You won’t be making the most of your life insurance policy if there are no beneficial riders included in it. Ask your broker to clearly outline the riders of his suggested policies.
#4. Consider All the Aspects of Your Present Life Condition
Keep in mind that you are mainly purchasing insurance to offer financial protection to your loved ones. If you do not have a policy for the right amount, the ones you care about will financially be left in a tight spot.
Consider three main factors given below to understand the right policy amount. Let your insurance broker help you with this analysis:
- Your current annual income
- Your present financial duties, such as debts or mortgages
- Your future financial responsibilities, such as arranging college tuitions for a grandchild or charitable donations
You will have no qualms in choosing the cheapest insurance if your beneficiary is not financially dependent on you.
Keep in mind that, being a senior citizen means you will have to pay higher premiums, regardless of the policy that you choose. It’s also the fact you will get more coverage when you pay higher premiums. However, coverage of about ten to fifteen years is sufficient for seniors. The long periods of coverage are more suited to the needs of younger people.
#5. Do Not Fall for the Marketing Tricks and Gimmicks
Finally, save yourself from falling for the marketing gimmicks of the unscrupulous insurance companies. If the offer sounds too good to be true, you have every right to say no to it, and look into other options.
You must have read or heard about new insurance types that promise extra layers of protection and wondered: “how bad can that offer be?” In reality, most of such promises of extra protection are mere gimmicks to provide you with expensive and unnecessary coverage.
For instance, cancer insurance is something that many people end up opting for. After all, cancer is a term that strikes fear in every heart, and everyone knows the financial tolls of the disease. Medical insurance covers cancer just like all other diseases, so an additional cancer cover in the life insurance policy is not needed.
The only way to protect yourself from falling prey to such tricks is to carefully evaluate the offer. Ask yourself whether you need the extra features or not, and simply avoid it if those are of no use to you.
The Bottom Line
There are many suitable life insurance companies out there whose plans would meet your needs just fine. However, there are also many options out there that will do nothing to help you get the benefits you are aiming for. Also, there are Mobility scooter which are only covered by your medical insurance when medically necessary. If you pay for your scooter, you must have a face-to-face appointment and a written prescription from a doctor.
The main aim has to differentiate between these two options and choose the right one, and the five tips mentioned above would be immensely helpful in doing that. Let’s get to work now and start the process of finding the right life insurance.