Term life insurance tends to be less expensive the younger you buy a policy. Because of this, many consumers might consider purchasing a term policy sooner rather than later to take advantage of the lower rates. But what if you want to buy a term life insurance policy later in life?
Here are four things to know about term life insurance for seniors.
1. Age isn’t the only factor that determines life insurance rates
As an older applicant for term life insurance, your age could potentially cause your premium rates to be a bit higher than those of a younger applicant.
But age isn’t the only factor to aﬀect life insurance premiums. Your health status and tobacco use can also weigh into the rates you are approved for, and older adults in good health may still be able to find term life insurance that’s aﬀordable for them.
2. Your protection needs may have decreased over time
Term life insurance premiums can be kept lower for seniors if they don’t need a high amount of coverage. If your children have established financial independence, your mortgage is possibly paid oﬀ, or Social Security and other retirement income is right around the corner, you may not have as much debt, or dependents in need of protection.
3. A shorter term length may meet your needs
As you draw near or begin to enjoy your retirement years, the length of time you need life insurance protection is typically shorter than in your younger years. Typically, shorter term durations such as 10 years are less expensive then longer ones such as 30 years, especially when you are a senior.
When purchasing a policy at a later stage in life, a 10- or 15-year duration may work for you. Should you like to continue your life insurance policy at the end of the premium period, you may wish to take advantage of the annual renewal feature. This feature allows you to renew your policy on an annual basis with a premium increase.
4. Guaranteed issue life insurance can be a good alternative to consider
While it is not a term life insurance product, guaranteed issue whole life insurance is a type of policy that requires no medical underwriting. That means applicants of a certain age will all be approved for the same rate, regardless of their health. For seniors who may have some health problems that could potentially aﬀect the rates of a basic term policy, guaranteed issue whole life insurance may actually be a more aﬀordable solution. Coverage is subject to receipt of payment and verification of identity as required by law and is eﬀective upon receipt of policy.
One thing you can consider is obtaining quotes for each type of policy and weighing the results against your needs.
AIG Life Insurers provides term life insurance solutions for people of all ages, including seniors. Learn more about our term coverage options and call 1-800-390-3019 to speak to an AIG-appointed life insurance agent who can help you select a policy that fits your needs.
Agency services provided by AIG Direct Insurance Services, Inc. ("AIG Direct"), CA license # 0B57619 and AR license # 0100105378, a subsidiary of American General Life Insurance Company ("AGL"), Houston, TX and an affiliate of The United States Life Insurance Company in the City of New York ("US Life"), New York, NY, all members of American International Group ("AIG").
Policies issued by: American General Life Insurance Company (AGL), Houston, TX. Policy Form Numbers ICC16-16901, 16901, ICC16-16900 and 16900 except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life), Policy Form Numbers 16901N and 16900N. Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Products may not be available in all states and product features including rates may vary by state. All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, nor by any of their affiliates, and none of them makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. © 2018 AIG. All rights reserved.
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