Getting term life insurance can be a good way for seniors to protect their families financially. But as an older person, finding an affordable policy may seem challenging.
Luckily, there are several ways you can get lower rates, such as comparing rates, only buying the coverage you need, and quitting smoking. Here are some tips to help you get affordable senior term life insurance.
Compare rates
Part of qualifying for affordable life insurance is finding policies that fit within your budget. Look for a website that will provide multiple quotes from different term life insurance companies. Narrow down the companies to ones that you can afford and review what each of them offers.
Choose your beneficiaries
Life insurance beneficiaries are people or entities that will receive your death benefit payout if you pass away while the policy is active. You can name loved ones like your children and grandchildren as beneficiaries or even a charity, business, or trust. When making this decision, consider who may need funds to cover expenses if you pass away, and keep in mind that you can designate multiple beneficiaries.
Only buy the coverage you need
Insurance premiums are usually more affordable when the coverage amount you buy is lower, or the length of the coverage is shorter. For example, a 10-year $250,000 term life policy would cost a 70-year-old male and female $2,292 and $1,440 per year, respectively. Meanwhile, a $250,000 term life policy with a 20-year term would cost $5,820 and $4,716 per year for a 70-year-old male and female.
Determine the amount of coverage you’ll need by evaluating all your current and future expenses. If you’re still working, a general rule of thumb is to pursue a policy that’s at least 10 times your annual income.
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Consider quitting smoking
Smoking can significantly impact whether you qualify for an affordable term life insurance policy. Life insurance companies view tobacco use as a proven health risk. That means it increases the risk your insurer takes on if they provide a smoker with a policy. When it comes to how life insurance companies set their rates, life expectancy is a major factor. So i f you’re currently a smoker and choose to quit smoking, you could be seen as less of a risk and may be likely to qualify for more affordable term life insurance.
Consider less risky careers
As a senior, your ability to switch careers at this time in your life may be challenging. But it also might be worth it if you can qualify for a more affordable policy. Working a job with a higher risk of injury or illness can make your term life insurance rates more expensive. As a result, y ou may be charged standard vs. preferred rates, pay higher premiums , or even be declined for life insurance.
Some jobs considered high risk include law enforcement, firefighters, and aviation workers. It’s also possible for an underwriter to make your rate higher if you frequently travel for work because of the increased risk you have of getting in a car accident.
Working in a safer profession, like a job in an office setting, may make you more likely to qualify for an affordable policy.
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Work with a licensed insurance agent
When getting a term life insurance policy, choosing from a long list of options may seem daunting. This is why it’s smart to work with a licensed insurance agent who can walk you through the process and answer any questions you may have. They can help you better understand your coverage needs and find a policy suited for you.
The bottom line
Getting affordable term life insurance can help seniors ensure their loved ones have adequate financial protection. When buying affordable term life insurance, you should compare rates, choose your beneficiaries, and buy the right amount of coverage so that your policy fits within your budget and needs. Consider quitting smoking and switching to a less risky job to qualify for lower rates. Finally, work with a licensed insurance agent to make finding the best policy easier for you. Keep these tips in mind as you look for affordable term life insurance as a senior.