Do seniors need life insurance?

If you’re a senior considering life insurance – or if you’re thinking of setting up a plan for an older friend or relative – there are a few factors to consider.

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Life insurance provides peace of mind and financial security both for policyholders and their loved ones. 

In exchange for a monthly fee to a provider, the insured can obtain a policy for hundreds of thousands of dollars (or even more than $1 million). That coverage, depending on the policy type, can then be given to beneficiaries in the event of the policyholder’s death. Or it can potentially be used as a cash resource while the insured is still alive.

While the benefits of having life insurance are substantial, the advantages of having a policy vary among policyholders. The upside of young people having life insurance, for example, is different than it is for seniors.

But do seniors need even life insurance? And if so, how much should they have?

A life insurance expert can help answer these questions and find a policy that works best for you. You can easily get a free price quote online right now by answering a few short questions.

Do seniors need life insurance?

If you’re a senior considering life insurance – or if you’re thinking of setting up a plan for an older friend or relative – there are a few factors to consider. Here are three things to think about.

The type of policy you want.

Senior life insurance comes in several forms. This includes term life, whole life, simplified issue, guaranteed issue and universal life

However, the best type of life insurance for a senior is really dependent upon their goals. If you’re older and just want to cover a select time frame, then term may be the way to go. Conversely, if you’re interested in a plan that has a cash value then whole may be better. Just note that whole life insurance policies take time to build cash reserves so immediate (or near immediate) access to cash in the policy is unlikely.

The goals for the policy you get.

When young people get life insurance the reasons why are typically clear: to support their spouse and young children. Or maybe they want to have enough to pay off their mortgage or student loans in their absence.

But what are the supporting reasons a senior should take out a policy? Do you want to leave a payout to a loved one? Do you want a plan you could potentially access for cash? Or is it something else altogether?

Knowing why you want a life insurance policy at an older age will go a long way in determining which policy you get (and for how much). Answer this question honestly and you’ll know if a life insurance plan is a necessity … or just nice to have. 

A life insurance expert can help you find a plan to meet your goals now. 

The amount you can afford.

Maybe you’ve already determined the type of life insurance policy you want and understand the goals you want to achieve. Then you’ll need to move on to affordability.

Remember, life insurance only becomes more expensive as you age and as health issues become more frequent. That cost will be reflected in your monthly premium. 

Unfortunately, life insurance doesn’t lend itself to one, standardized recommendation. If you can afford (and want) a robust life insurance plan then you may be able to secure one, albeit at a higher rate. On the other hand, if you want a plan that would just cover expenses in the event of your death, then you may be able to obtain a policy for a lower cost.

Know your budget and then match it to the above two factors to find the best plan for you and your loved ones. 

The bottom line

So, what’s the answer to the question “do seniors need life insurance?” 

It depends. 

Some seniors may very well benefit from (and actually need) a policy like term life to protect themselves and their loved ones. Other seniors, meantime, may already have all the economic security they need and have family members or friends who are financially independent. Those seniors may just need a minimal policy, or they can consider forgoing life insurance completely.

Seniors should do a realistic appraisal of what they may need and what they can afford before securing their own life insurance policy. Start today with a free price quote so you have a better idea of what to expect. 

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