Over 65 and looking for life insurance? Find out how to get an affordable policy tailored to your needs.
Life insurance isn’t just for the young. While your children may no longer be financially dependent on you, you need to consider some of the expenses you may leave behind when you die:
- Outstanding debts including mortgage and personal loans
- Medical costs in the event you suffer serious illness or injury
- Funeral expenses
- Estate planning
- Ongoing costs for your partner
- Housekeeping expenses
Life insurance can help alleviate some of these costs and take the financial burden off of your loved ones when you’re gone. We’ve listed some helpful tips below about finding an affordable life insurance policy if you’re over 65.
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What expenses might life insurance cover for people aged 65 and over?
Peoples life insurance needs change with their different life stages, making it important to review your policy each year. This will ensure that you don’t have too much or too little coverage in place.
While everyone’s needs may be different, some typical expenses that life insurance can cover for people 65 and over include:
- Outstanding debt. There may be money owed on your mortgage or other personal debts that have still not been paid.
- Medical expenses. You may have existing medical expenses that will pass on to your spouse or family to cover when you pass.
- Funeral Expenses. Many policies will offer final expense insurance to help cover the costs of a funeral, reducing any financial burdens on your family.
Term life insurance for people over 65
Term life insurance is ideal for seniors if they think they’ll only need to be financially insured for the next 10 to 15 years or so. If within that time frame you can pay your debts and get your investments in order, you may not need to worry about how to leave money behind to your loved ones.
Here are some key points to consider:
- Terminal illness benefit. Receive a portion of your benefit before you pass if you’ve been diagnosed you with a terminal illness.
- Shorter policies. You can opt for a 10 or 15 year policy if you only need to be financially insured for a shorter term.
- Leaving an inheritance. You can leave money behind to your children in order to financially help them when you’re no longer around.
- Final expenses benefit. An advanced payment of a portion of the sum-insured is paid to nominated beneficiaries to help them cover immediate expenses following death.
- Donation to a non-profit. Perhaps there’s a cause or foundation that’s close to your heart, you can give a charitable gift even after your gone to show your support.
When you’re considering term life insurance, you should focus your attention on whether or not you’d be financially sound if you outlived your term. If you think you’d need to be insured longer for financial reasons, term life may not be the best fit.
Critical illness for people over 65
People over age 65 may consider adding critical illness to their life insurance plan — either as an additional or standalone policy. Seniors are typically more susceptible to sickness and critical illness can offer protection for up to 40 different medical conditions . Conditions covered can include heart attack, stroke, coma, out of hospital cardiac arrest and loss of independence.
Key features of a critical illness policy
Important factors
- Advanced benefits. Some policies will provide policy owners with an advancement of the benefit following the diagnosis of a specified condition.
- Tax free payout. Claims are paid to the policyholder without being taxed, providing a larger lump sum to be used however the policy owner sees fit.
- Peace of mind. If your family has a history with a certain condition, it may be wise to get critical illness insurance in case anything happens to you. This will provide financial relief for any loved one you’ll leave behind.
- Covers many conditions. It’s important for policyholders to review the conditions covered before applying. While there are many conditions included in the policy, there are also many medical events that may not pay out.
Features and benefits for critical illness and life insurance will vary between policies. This is why it’s important to get a clear understanding of what will and won’t be included in your policy.
Tips to compare life insurance quotes for people over 65
In addition to the benefits, features and price of the policy being applied for, there are some key things to look out for when comparing quotes on life insurance policies.
- Benefit amount. What is the maximum amount of coverage that can be taken out on the policy?
- Cost. Does the policy value match the amount you’re paying? Are there expensive extras that you don’t need? Also check to see if you have level or rising premiums.
- Waiting period. How long is the period between the claim being made and the benefit being paid to policy beneficiaries?
- Maximum entry age. What is the cut-off age for applying?
- Free look period. What is the duration of time after the policy being taken out that coverage can be cancelled and premiums refunded?
- Claims process. What is the insurance provider’s claims process? This should be stated on the insurers website.
- Policy renewal. To what age can cover be renewed?
Of course these are just a few parts of the policy to review when comparing quotes. To get the best life insurance package, compare different policies and learn about any exclusions that may apply.