Why life insurance for seniors is worth it

FAN Editor
Despite conventional wisdom, there are many older adults who would actually benefit from having a life insurance policy. Willie B. Thomas/Getty Images

Life insurance can be advantageous for a wide variety of people. In exchange for an inexpensive fee to a provider each month (often discounted if paid annually), policyholders can secure a financial safety net for their loved ones in their absence. Some insurance types will even provide a cash reserve that the insured can use while alive.

Despite the advantages a life insurance policy provides during and after one’s life, however, there is one demographic that is often left out of the conversation: seniors.

For older adults, life insurance is usually considered not worth it relative to the typical cost and coverage that can be obtained. However, the benefits of life insurance are relative to each individual. A blanket assumption that this insurance type won’t benefit seniors can be misleading. There are, in fact, many older adults who would benefit from having a policy.

If you’re in the market for life insurance then start by getting a free price quote so you know what to expect.

Why life insurance for seniors is worth it

Life insurance for seniors can be both cost-effective and valuable. Here are three reasons why it’s worth buying:

It can be used as cash while alive

Life insurance doesn’t have to be something you just set and forget. There are policy types, like whole life insurance, that come with a cash element that can be accessed during your lifetime. This money can then be used to pay off debt, make household repairs or for anything else you need extra funds for. 

Whole life insurance policies tend to be more expensive than other insurance types. And it will take some time to build up the cash reserves before you can access them. But if you don’t wait and apply for a policy now you’ll improve your chances of securing a lower rate – and you’ll give yourself time to start accumulating cash.

Start by getting a free price estimate from Ladder now

It can cover end-of-life expenses

Life insurance doesn’t have to be extravagant. While policy coverages range from tens of thousands of dollars to $1 million or more, the amount you need is personal. If you want a policy that can cover end-of-life expenses, for example, a policy in the amount of $20,000 could be sufficient. This will cover costs for things like a wake, funeral and burial. And because the coverage amount is small, the corresponding price will usually be reasonable (even for seniors).

Yes, life insurance can be used for a wide variety of things. But if you simply want to avoid burdening loved ones with end-of-life expenses then it may be worth purchasing.

It can serve as an inheritance for loved ones

If you don’t have any significant savings or home equity to pass on to family members and friends, don’t worry. A life insurance policy can easily fill that gap and you can start today without having to cut corners and save for months and years to come.

For a 64-year-old male living in New York, Haven Life quotes a 10-year term life insurance policy in the amount of $150,000 at $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. 

A sum of $150,000 to leave behind to loved ones is substantial, especially if it can be bought for less than $100 per month. Do the math and see what you can afford and are eligible for. You may be surprised about how much coverage you can get – and leave behind – for your beneficiaries.

Use the table below to compare some top life insurance providers on the market.

The bottom line

As is the norm with all financial products, the value of life insurance is specific to the individual’s personal circumstances and goals. But don’t discount life insurance for seniors. If you’re looking for a cash alternative to use while alive, a way to cover end-of-life expenses or a nest egg to leave your loved ones, life insurance may very well be worth it.

Start with a free price quote from Haven Life now.

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