It’s common knowledge that life insurance for seniors and elderly people is quite expensive. The older you become, the higher the price you’ll pay for most life insurance coverage options available, since the likelihood of dying increases with age.
But the truth is, life insurance isn’t always as expensive as you might think. In fact, the improving quality of life and increasing life expectancy in the United States and other developed countries has caused life insurance rates to go down significantly. So, because people are now living longer and healthier lives, the risks to insurance companies are now lower, and prices for life insurance have dropped.
Even at that, you can still get your life insurance for lower prices. With these five tips, you can get amazingly cheap and affordable life insurance meant for seniors and elderly people.
1. Buy only what you need
Just as with every other necessity, your life insurance needs change with time. As you grow older, chances are you’ll need less insurance, since you’ll have reduced financial burden. You’re most probably not spending on the kids anymore; they’ve grown up. You’ve most likely paid off your housing mortgage. And chances are you’ve accumulated good money through retirement investments. If any of these runs true for you, then you need less insurance right now than you did in the past.
You can save a lot of money by narrowing down your insurance costs to only what you need. Don’t make the same mistake most other people make — buying too much insurance than they actually need. Always review your insurance needs every year and cut out whatever you think is no longer necessary.
2. Piggyback on an employer
If you’re still agile enough to take up a job, do that. You’ll most likely be able to participate in your employer’s group plan. If your employer has no such plan in place, advise them to set it up as soon as possible. With such a plan in place, your employer can pass all insurance costs on to you and other employees. This would be a very huge benefit to you the employee, coming at no extra cost to the employer.
More importantly, be sure that you can maintain your employer’s policy once you quit working for them. Many employer insurance plans offer this option. If that’s exactly what your employer offers, then you’ll be paying next to nothing on life insurance.
3. Select smartly
There are different types of life insurance, and knowing the right type to choose can save you a lot of money. The three commonest types of life insurance are term life insurance, whole life insurance, and guaranteed issue life insurance.
It is widely advised that you steer clear of whole life and guaranteed issue life insurance options, except if you’re unable to find a cheap term life insurance plan. Cheap term life insurance is the most recommended option — and usually the cheapest.
However, it might be possible to practically convert a whole life insurance policy into a term life policy. You do this by creating a policy that doesn’t accumulate much cash values.
Although you can buy a guaranteed life insurance policy at any time regardless of your age or health status, this option is usually not recommended because the coverage provided isn’t usually robust enough and the premiums are usually high.
4. Get as much quotes as possible
Virtually all insurance companies will readily send you their quotes for different life insurance plans. Don’t jump at the first “friendly” price you see; you might be even friendlier prices by probing further.
For faster delivery of life insurance quotes, request them online through the websites of reputable insurance companies. Within a few days, you’ll get the quote delivered to your inbox. In fact, some insurance companies provide instant quotes on their website.
The good thing about requesting quotes is that it’s free. You can get hundreds of quotes without paying a dime. The more quotes you request, the higher your chances of finding cheap life insurance plans for seniors.
5. Join a group
If getting a job is no longer an option for you, then consider joining groups that provide life insurance coverage for senior citizens and elderly people. Many group offer group life insurance plans that pass huge benefits down to members at much reduced costs.
To start with, find out with groups you’re active in to see if they have a group life insurance plan in place. Even if they do, find out about other groups that have similar plans in place and consider joining any group that offers affordable options.
Bear in mind, however, that not every group plan is good for you. So, compare prices among many different groups to know which offers are attractive.
Now, you know that you have multiple options when it comes to cutting down on your life insurance prices. Just make sure you really need life insurance in the first place. If you do, then figure out how much you really need. Next, try to get coverage through an employer or a group you belong to — or one that you can quickly join. Most importantly, don’t forget to compare prices.
If you follow these tips, you’ll end up getting the right life insurance plan for much less than you ever imagined.