More and more mature citizens want to know how to get senior term life insurance cheap. They are looking into this because they can’t count on real estate equity and stock market investments to “self-insure” as they did in the past.
If you are a senior citizen and still working, you might need term life insurance to protect your family in case you aren’t around anymore to work and bring home that income.
Even if you aren’t working, you may need insurance to make up for the reduced Social Security spousal benefits and lower pension income your survivor may have to deal with one day.
Here are the steps I recommend:
1. Join organizations.
There are many organizations that offer life insurance discounts for their members. I’m told that AARP offers such programs although I’m not familiar with it. Find out if other organizations you belong to offer group term policies and if you can participate.
2. Take advantage of your employer.
If you are working, there is a chance that your employer offers a group plan too. If the company doesn’t, ask them to look into starting one. It doesn’t have to cost them anything and it would be a great benefit – especially to people like you.
3. Get lots of quotes.
Insurance companies are run by actuaries. These are the people who determine the likelihood of some terrible thing happening to you in any one year. Each company calculates risk differently. You want to get in front of the company with the most optimistic actuary – so look around. Cheap term life insurance can be found. Just get quotes…it doesn’t cost a thing.
4. Consider whole life insurance.
I’m not a fan of whole life insurance, but this is one of the few cases where it might work. If you are very healthy, you might look into a whole life policy that doesn’t build up much cash value. This, in essence, is a term policy, and depending on your age, health and the number of years you’ll need the coverage, it might be cheaper than a term policy.
I want to caution against going for a guaranteed issue life policy. Those are the ones they advertise late at night because they know old geezers never sleep.
I don’t like these policies because they have some provisions which may preclude you from ever collecting the benefits. You can read more about guaranteed issue life here. The only time you’d consider this coverage is if you have absolutely no alternative.
And that brings up a very important point.
No matter what policy you buy, make sure you read the fine print. That goes for group policies too. You want to make sure that the policy is issued by a reputable firm, that they’ll pay off if you die and they won’t deny benefits if you die within the first three years of coverage.
Of course, while you’re getting your insurance in place, it’s smart to make sure all your other financial and legal matters are in order too.
What steps have you taken as a senior to get proper life insurance? Are there any other tips you can share?