When researching life insurance for older people I came upon an interesting statistic! According to a 2002 article in the Wall Street Journal:

“[i]ndividuals age 65 and over have a total of $492 billion of life
insurance in force.”

That total may seem like a lot of money, but it is only four percent of the total US life insurance policies that are in force. Meanwhile, the age group over 65 makes thatlmost 75% of all deaths. It does seem odd that an age group which should be most concerned about passing away is not covered.

Older People Can Find Life Insurance

If you are over 65, you can find life insurance, and you can even find term life insurance for older people! Rates are dropping because people are living longer. In addition, insurers are marketing many simplified issue policies, so you can even find no medical exam life insurance for seniors.

Share This

It surprises me a little, since the first type of life insurance coverage was whole life, that people are not familiar with basic and simple permanent coverage. I guess that term gets more press these days, mostly because the premiums are usually much cheaper for the same amount of coverage. And term is the best for lots of people, but not for everybody.

I guess I am not the only one who gets this question because I have found several articles being published lately, including this one: What is Whole Life Insurance?

The article goes over the basic differences between whole life and other types of coverage. For an even more basic explanation, you can find this article: Whole Life Insurance Explained.

Who Should Buy Whole Life?

You cannot automatically assume that term life insurance is best for everybody, even though that is the popular answer. If you want coverage that does not expire (as long as the policy is kept in force), and that builds up a cash value to act as insurance and savings, you may choose whole life.

Related: Define Term LIfe Insurance

Share This

Also See Term Life Insurance For Older People

We see lots of people performing a search for the best term life insurance policy. However, having worked in the industry, we can tell you that it would be impossible to present the same life insurance product for everybody. When you are shopping for a car or a home you understand that your own individual needs, likes, and what you can afford to pay will affect your decision to buy. Since you are probably signing a long term contract when you purchase a large physical product,, you know you need to take the time to compare before you buy. The same logic would certainly apply to a financial product, and yet many consumers simply sign off with the first life insurance agent they speak too.

For one thing, people who are a little older, may find that premiums are unaffordable for a level term policy with enough coverage to fit their needs. Consider a family who has just purchased a home, and is carrying a large mortgage. The husband and wife decide to cover the mortgage in case one of the passes away and leaves the family without that breadwinner’s income. They could buy a level policy, but as their debt decreases over time, they may have more coverage then they need. If the insured person is older, they may find that the cost of buying more coverage then they really need is not really affordable.

A decreasing term policy may be in order. As the home debt decreases, so will the value of the policy. The insurer will have less risk, since later in the contract, they will have less liability. The insured people will enjoy a lower premium because of this.

Return of Premium is an attractive option (rider). If the insured person survives the policy term, all of the premiums they paid will be refunded. This rider costs a little extra, but it is very popular because it provides a cash payment at the end. Many people combine decreasing term and return of premium with a type of life coverage called mortgage protection insurance.

Before you buy, be sure to shop around too. We found hundreds of dollars a year difference between the major companies in our state. Learn about the advantages and disadvantages of different products, and then shop for the best rates. That’s how you will find the best life insurance policy.

Let us help you find the best term life insurance quotes with our fast, safe, and free online quote form!

life insurance

Share This

Technorati Tags: life insurance

You can save time and protect your policy with a simple issue policy like this. Now older people, over 50, may have a bit tougher time finding very large face value policies without a physical, though they can still get smaller simple issue policies. If you are in your 50’s to 85, or if you care for somebody who is, look at life insurance for older people. Another resource for seniors life insurance is final expense for senior citizens.

Share This