Should seniors buy term life insurance?

Life insurance is a fundamental part of sound financial planning. Whether you’re a young adult just starting your career or a newlywed, a new parent, or a new homeowner, life insurance is important to have. Some financial advisers would even call it mandatory. 

Seniors, however, make up a demographic that’s often left out of the life insurance conversation. For older adults, life insurance is often considered not to be worth it – the cost relative to the coverage that can be secured can be discouraging. There are some seniors, however, who may actually benefit from life insurance and they won’t have to break the bank to get a policy.

If you’re a senior looking to cover end-of-life expenses or to leave your loved ones an inheritance, life insurance may be valuable. It can also be used to pay off any debt your death would otherwise leave to your beneficiaries. For these reasons, and for some other surprising ones, life insurance for seniors may actually be worth pursuing.

What type of life insurance is appropriate? Should seniors buy term life insurance or something else? If you’re in the market for life insurance then start by getting a free price quote so you know what to expect.

Should seniors buy term life insurance?

Here are three reasons why seniors should consider buying term life insurance.

It’s less expensive than whole life insurance

If you’re a senior who wants the protection life insurance offers – but can’t afford to purchase a whole life insurance policy – then term life insurance is a valuable alternative to pursue. Term life insurance is generally less expensive than whole life insurance, mainly because the latter type comes with a desirable cash reserve whereas term life insurance does not.

But that doesn’t mean term life insurance isn’t worth it. In many cases it often is. And it doesn’t have to be expensive, either. For a 64-year-old man living in New York, Haven Life quotes a 10-year term life insurance policy in the amount of $150,000 at $98.74 per month. That’s for a non-smoking man considered to be in good health. A woman with all of the same characteristics is quoted at $70.11 for the same amount of coverage.

If you could afford a monthly bill in that price range and would like the benefit of having a term life insurance policy for your loved ones, then start by getting your own free price estimate now.

It will only last for a select time frame

As mentioned earlier, whole life insurance policies have an appealing cash reserve for policyholders. However, it takes time to build that up. But if you want protection right away and for a select time frame only, then term life insurance is a better option. 

Say, for example, that you want to be covered until your children have moved out, then a term life insurance policy for 10 years may be worth it. Or if you want to be covered until your mortgage is paid off (and don’t want to be saddled with the higher costs tied to a whole life insurance policy), then you can apply for a policy in the same time frame as your mortgage.

If you’re an older adult, the window to take advantage of a whole life insurance policy may have already passed. But a term life insurance policy for a single term may be valuable.

It’s simple to use

Life insurance types, costs and coverage options can be difficult to navigate. This is especially true for policies with cash and investing options. While whole life insurance policies have that cash element, it can be stressful to deal with, particularly when making deductions and managing cash flow. 

Variable life insurance policies, meantime, permit you to invest your money in various securities and stocks, which allows you to grow your account and death benefits over time. But this can also become stressful to coordinate, particularly in a volatile stock market.

Term life insurance, however, is one of the simplest life insurance policies to have. For seniors looking to streamline their personal finances into a more manageable form, this benefit can be particularly appealing. If you want to have a life insurance policy, but don’t want to be bothered with the intricacies that come with policies with cash elements, then term life insurance is the way to go.

The bottom line

As mentioned earlier, life insurance for seniors isn’t always valuable. But if you have specific financial goals in mind – and think life insurance is the way to accomplish them – then you should review your term life insurance options. Start by getting a free price quote or use the table below to compare some top providers.