Life insurance for seniors : term or permanent?
Although many insurance companies set a limit for their life insurance policies, there are always exceptions. Precisely because reality does not always conform to this circumstance and there are those who, at age 65 and over, have never thought about this issue before. It is never too late if the benefit is as important as the one obtained by taking out life insurance.
Insurers have had to adapt to this new reality and offer life insurance for seniors as well. Obviously, the cost of the premiums will be higher than if it is taken out by a person in their forties.
But it is still advisable to subscribe to it. Especially in cases where the insured is still paying a mortgage or if he or she is a professional with risky jobs. Or simply if he wants to guarantee the economic well-being of his family, either because they are still dependent on him or because they have a large fortune.
Life is unpredictable and we never know what might happen to us. A life insurance policy therefore guarantees financial peace of mind for the insured senior and his or her loved ones in the worst possible scenario. In addition, depending on the company, a life insurance policy can mean legal support, a second opinion service and other interesting benefits.
We explain the different types of life insurance for seniors :
Permanent insurance
Permanent life insurance is gaining in popularity for a number of reasons despite the higher premiums. Unlike other life insurance policies, once you purchase it, permanent life insurance does not vary with your age or health; the premiums never change.
Permanent life insurance will give you the peace of mind of knowing that your family will also be protected against other expenses such as estate taxes.
Term Insurance
Term life insurance is the most affordable life insurance policy for those who want to protect their financial future and that of their family. With low premiums, compared to permanent life insurance.
This type of insurance allows for a limited period of 10, 20 or more years allowing the insured senior to renew the policy at the end of the set period. The price of the policy depends on the age and health of the insured and can be modified or even changed at the end of the period.
Life insurance without medical requirements
If you are afraid of the insurance company’s medical exams, the first thing you need to know is that these tests are not as difficult as people usually think.
If you still think you won’t pass them, or if you don’t want to take them, you can use one of the non-medical life insurance terms. This type of life insurance may cost you more than the same insurance with a doctor’s visit.
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Which senior life insurance should I choose?
While permanent life insurance is appropriate in some situations, term life insurance is the most suitable for most seniors. It’s generally less expensive and easier to understand.
Permanent life insurance, on the other hand, does not expire and often has a cash value (liquid value) that works like an investment with a low interest rate.
For more information, use a life insurance comparison tool to compare multiple policies from different insurers.
Advantages and disadvantages
On the one hand, we have term life insurance which, as mentioned, is one of the easiest to understand and also one of the most affordable. It has the advantage of allowing you to cancel the life insurance policy without losing money. However, keep in mind that once the term of the coverage ends, you will no longer be protected and you will have to renew your coverage at a higher premium.
Permanent life insurance, on the other hand, doesn’t expire as long as you pay your premiums and allows you to save money through cash value. Being more expensive, however, people tend to abandon it after a short time, forgetting that the price is related to the high coverage it offers.
Finally, non-medical life insurance is only recommended if your health condition does not allow you to access other types of insurance or if you simply do not want to take the medical tests.
Finally, if you don’t know how much coverage you need, you can calculate the amount with a life insurance coverage calculator.
