Whether purchasing policies for the first time or renewing another policy, senior citizens often find themselves shopping for life insurance. Finding affordable life insurance for seniors was once a nearly impossible task, but today’s marketplace is friendlier than ever to elderly customers. More options are available to senior citizens than ever before, and the Internet makes it easy to comparison shop for the most affordable policy.
Why Seniors Need Life Insurance
There are three main reasons to purchase life insurance:
– To pay for your final expenses, such as outstanding debts and the cost of a funeral
– To cover the living expenses of those who are dependent on you, such as a spouse, disabled child or dependent grandchild
– To provide financial security to your children or other family members
Many people purchase life insurance when they are young as protection against untimely death, but the elderly can also benefit tremendously from life insurance. As senior citizens contemplate their golden years, knowing that their loved ones will be taken care of financially can provide tremendous peace-of-mind. Whether you purchase a policy to cover your own debts or want to pass along money for your grandchild’s education, life insurance can be a smart financial decision.
Factors Influencing the Cost of Coverage
Finding affordable life insurance for seniors can sometimes be a challenge, but it’s not impossible. The cost of a policy will depend upon the perceived risk of the insured. To put it simply, insurance companies charge higher rates to people who have a high risk of dying during the policy term. This is why people with chronic health conditions pay more for insurance, and it’s also why senior citizens cost more to insure than college students.
Nevertheless, a high demand for life insurance has led to insurance companies reducing their rates in order to stay competitive. As the Baby Boom generation ages, more senior citizens will demand insurance, which will help reduce the overall cost of coverage. Medical technology has also helped keep the cost of premiums low. People live longer than they once did, which makes insuring a 60-year-old much less risky than it would have been a decade ago. Certain high-risk insurance companies cater specifically to customers who may have trouble receiving coverage elsewhere, and there is no reason why a reasonably healthy senior citizen should not be able to receive affordable insurance.
How to Find Affordable Life Insurance for Seniors
What “affordable” means in the context of life insurance for seniors is not the same as it would be for younger people. A senior citizen’s premiums will never be as low as those for a similar policy held by a person in his or her 20s. All the same, the value of life insurance for seniors is higher than for other age groups. The older you are, the more likely it is that you will pass away during your term, which means that your beneficiaries will be able to reap the benefits of your policy. Viewed in this way, life insurance for the elderly is actually a smarter investment than a policy purchased in your youth.
In order to get the best possible rates, be sure to apply for insurance when you are at the peak of health. In general, it’s always best to apply sooner rather than later. It’s also a good idea to stop smoking several months before applying and work to lose weight, reduce your blood pressure or otherwise improve your overall health. This will ensure that your premiums will be as low as possible.