Life insurance for seniors: 3 myths debunked

Life insurance is a fundamental part of sound financial planning. 

In return for a monthly fee to a provider, the insured can secure a financial safety net for their loved ones in the event of their death. Some policy types will even allow the policyholder to access a cash reserve to use while alive.

As with many financial products and services, it can be hard to determine fact from fiction. This is particularly true for specialized insurance products.

Life insurance for seniors is no exception. To best optimize a policy, those interested first need to understand the benefits this unique financial product offers.

If you're in the market for life insurance then start by getting a free online price estimate so you know exactly what to expect.

Life insurance for seniors: 3 myths debunked

If you're a senior looking for life insurance it's important to know how you can potentially benefit. Here are three myths to be aware of.

Life insurance for seniors isn't worth it

The value of any financial product varies based on personal circumstances. While life insurance for seniors is commonly thought of as not being "worth it," for some seniors it may be valuable.

Life insurance, for example, can be used to cover end-of-life expenses, thus freeing your loved ones from having to pay for things like a wake, funeral and burial service.

A policy can also help decrease or eliminate any outstanding debt that you would otherwise pass on to your beneficiaries. And it can pay estate taxes on an inheritance you leave.

All of these costs can be covered by life insurance - or it can simply be used as a nest egg to leave for loved ones. For all of these reasons (and any personal benefits one can get from a life insurance policy), life insurance for seniors can actually be valuable to have.

Get a free price quote online now to see if life insurance makes sense for you.

Life insurance for seniors is expensive

Will seniors be offered the same coverage for the same price as someone considerably younger? That's unlikely. But will they be able to secure a cost-effective and reliable plan nonetheless? That's possible.

Remember, the cost of life insurance for seniors is relative. Despite conventional wisdom, it still may be worth securing, particularly if it will help you meet a financial goal.

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. This is a quote for a non-smoking male considered to be in good health. 

For a 64-year-old female living in New York, Haven Life will provide a 10-year term life insurance policy in the amount of $150,000 for $70.11 per month. This is a quote for a non-smoking female considered to be in good health.

Obviously, if your qualifications are not exactly the same as those, or if you want more coverage, the price will be adjusted. However, for some seniors, a price tag under $100 each month may be affordable, particularly for the peace of mind a life insurance policy can provide.

Seniors won't qualify for life insurance

Many people who would appear unlikely to qualify for life insurance can, in fact, secure a policy. 

Older people, those with health conditions (and even smokers) can potentially be approved for life insurance. They may just need to settle for less coverage or go through a more extensive application process.

If you're a senior in good health who doesn't smoke and are willing to take a medical exam to demonstrate your fitness you will very likely qualify for life insurance. 

In fact, you may even be able to obtain a low-cost policy for a significant amount of coverage, as shown in the examples above. And if you don't want to take a medical exam you can look into no-exam life insurance options, which can provide insurance coverage without any supporting medical documentation. 

The bottom line

As with many other financial products and services, the value is relative to the individual's personal circumstances and goals. 

While life insurance for seniors isn't traditionally considered advantageous, for some seniors it may have significant value. Accordingly, those interested should avoid myths and confusion and work directly with an insurance provider to find a plan that works best for their needs.

Click here to review a list of top insurance providers or use the table below to start comparing your options.