Life insurance for seniors: How to know if it's worth it
Not every financial product is beneficial to have.
In fact, most financial products and services are personal and tied to the individual's preferences and goals. While pet insurance works well for many pet owners, it may not be as advantageous for owners of older pets. Travel insurance, meanwhile, is helpful for those who travel often, particularly overseas. But if you're doing short domestic trips? It may not be worth it.
The benefits of life insurance are broad and applicable to a wide array of people. But is it worth it for seniors? Depending on your personal situation and circumstances, life insurance may be both cost-effective and valuable. Or it may be worth skipping. It really depends on your needs.
If you're in the market for life insurance, then start by getting a free price estimate here to see exactly what you're eligible for.
Life insurance for seniors: How to know if it's worth it
As mentioned, the value of any financial product or service is in the eye of the beholder. With that being said, there are some ways to better determine if life insurance can benefit you. If you're a senior considering life insurance, here's how you can determine it's worth it.
Compare price to coverage
Life insurance for older adults is traditionally considered not to be valuable when viewed through a cost-benefit analysis. The number of coverage seniors can get - relative to the cost they have to pay to get it - can be uneven. But this mindset can also be misleading. Some seniors can actually secure a policy for a six-figure amount for less than $100 a month.
For a 64-year-old male living in New York, Haven Life will provide a 10-year term life insurance policy in the amount of $150,000 for $98.74 per month. That's for a non-smoking male considered to be in good health. A 64-year-old female with the same characteristics would pay even less.
So, don't automatically assume that life insurance is too expensive or that you won't be able to get a decent amount of coverage. Get your own quote from Haven Life to see how much you could qualify for (and how much it would cost).
Review your alternatives
Do you have other financial alternatives that can more easily accomplish your goals?
For example, you could obtain a life insurance policy to serve as an inheritance for loved ones. But if you already have significant savings stashed away - or if you have substantial equity in your home - you may already be leaving an inheritance. In this case, life insurance may not be worth pursuing.
Conversely, if your savings and home equity are minimal but you still want to leave a nest egg for your beneficiaries, then life insurance could be a worthwhile vehicle to accomplish this goal.
Know your goals and review all the ways you can accomplish them. See where life insurance fits in from there.
Shop around
As mentioned, life insurance for seniors can be both valuable and inexpensive. But you won't know that without doing your research. Accordingly, it pays to shop around for providers. Don't accept the first offer you receive. See what each provider is offering before committing.
Just make sure you get identical quotes across providers. So, if you're looking for a term life insurance policy for 10 years for $100,000, make sure you get quotes from all providers for the same insurance type, length and amount. This will help you do an accurate comparison and give you peace of mind by knowing that you chose the best policy.
You can explore multiple life insurance providers here or use the table below to start shopping.
The bottom line
Life insurance may be worth it for some seniors. And, for some seniors, it may just be too expensive. But by comparing the price to coverage, reviewing your alternatives and shopping around you can better determine if life insurance is valuable for you and your loved ones.
