Life insurance can be challenging for seniors to secure. It even gets more demanding when you learn of the premiums you will have to pay.
Insurance companies make money by reducing their chances of making payouts to their clients. Seniors are considered as high-risk clients because they have a higher mortality rate than younger clients. That means that the chances of the insurer making a payout to the beneficiaries is higher.
To deal with the high risks, insurance companies charge seniors higher premiums. And if you suffer from certain medical conditions, you will have to pay even higher premiums, or they might also deny you insurance coverage.
So how can you reduce the amount you will pay on premiums and save on life insurance?
Best Ways to Save on Life Insurance for Seniors
1. Taking a Policy Earlier
Age significantly affects the premiums you will pay. The older you are, the higher your prices. There is, therefore, no better time to take an indemnity policy like now. And don’t forget a lot of insurers have a cut off age for when seniors can apply for insurance. Most of them have it at 85.
As you approach the cut off age, they will be more reluctant to sell you a policy, and when they do, they will ask for extremely high premiums.
The best time to apply for a life indemnity cover as a senior is between the age of 60-70. The rates are affordable as compared to those charged on 75-year-olds and above. Don’t wait any longer; approach your ideal insurer today for a quote on life indemnity. HealthMarkets is a helpful resource that offers different types of life insurance plans catering to various needs and budgets.
Try to find agents who are exclusively working for seniors, like SeniorsLifeInsuranceFinder.com; they can be your golden ticket to a more affordable insurance plan as a senior. Their closer relationship with the insurance companies can work to their advantage and aid in cutting you a cheaper deal.
Using an agent may cost you a little more since you have to pay them, but in the long run, the benefits make your agent fees negligible.
However, choose an agent wisely. Consider factors such as reputation and how long they have been in the business. The longer, the better since they will have more connections with different insurance companies. If possible, go for an agency instead of an independent agent.
3. Compare and Shop
Shopping for an insurer gives you a broader view of the average costs of life insurance in the market. As you ask different indemnity companies for their quotes on life policies for seniors, you will realize how big a difference in prices can exist between them.
You will also get more alternatives to choose from. Some companies may even offer additional features to their policies, such as riders, which will give you value for your money. Such riders can include long term care or waiver of premiums under certain conditions.
4. Second-to-die Life Insurance Policies
A second to die policy requires a minimum of two applicants buying a single insurance cover. With this type of indemnity, the death benefits are paid out only after the second person dies. The advantage it has is that it is one of the cheapest forms of life insurance policies.
Are you suffering from a terminal illness and can’t find any insurer willing to take you or charge reasonable prices? Then this is the best option to go for. The underwriting process will be less strict, and this option significantly raises your chances of securing a policy.
Therefore, if you are a married senior, you can consider talking with your partner about it and taking it together. Compared to taking individual policies, you will pay very low premiums and save thousands of dollars in the long run.
5. Healthy Lifestyle
Seniors are at a higher risk of developing terminal illnesses or life-threatening medical conditions. Because of this, a lot of insurance companies perform thorough medical check-ups and procedures during the underwriting process for seniors.
During the underwriting process, they may take blood samples and carry out urine tests. If you are found to be an alcoholic, a drug user, or a smoker, your premiums will be substantially raised. And that is if they don’t decide to deny you a policy.
To get more affordable premium charges, lead a healthy lifestyle. Exercise quitting dangerous habits like drinking or smoking. This way, they will be more lenient and quote fairer prices.
Getting an affordable life indemnity cover as a senior to save you on costs is a challenging task. You will need to be patient, research widely, and be open-minded to different ideas.
A good idea to consider, for instance, is term life insurance, which is more affordable in comparison to a whole life policy. If the researching and shopping process seems exhausting to you, you can always use an agent to help you.