*Please note this article is U.S. based

Many people go through the majority of their lives without purchasing the proper insurance to cover their needs. The truth is, some people are able to get away with minimal coverage or never actually need to use their benefits. Most people, on the other hand, are not so fortunate. Although revisiting your life insurance policy might not seem like the most thrilling afternoon activity, it’s critical if you want to ensure that you continue to be properly protected and to help prepare your loved ones for the future in the best way possible.

Like most types of insurance, life insurance has many ins and outs based on your individual lifestyle, health conditions, medical history, income status, and family. If you’re recently retired or considered a senior, it’s not uncommon to have a few life insurance misconceptions when it comes to what the best option is for you—or the impact it will eventually have on your family. You can rest assured knowing we’re about to explore some very common questions regarding life insurance in order to help you determine what is right for you.

Are there affordable coverage options?

If you’re considered a senior currently, without proper life insurance coverage, you might be wondering if there are any policies on the market that won’t drain your bank account or feel overcomplicated to digest. The good news is the answer is yes. There are convenient and affordable life insurance policies that you can purchase to put your mind at ease, knowing your family is protected and your wallet is still intact. It’s recommended that you meet with a professional in order to review and discuss your specific situation.

Most agents will be able to guide you in the correct direction—without putting you at a loss or into a stressful situation. For example, if you’re over the age of 70, it wouldn’t be recommended to maintain long-term life insurance in which your premium decreases over time—since you won’t see money-saving benefits until years down the road. Rather, your agent might present you with shorter-term options that are more affordable up front and allow you to live the way you want during your retirement, keeping your age in mind.

Why seniors may need insurance coverage?

Because life insurance is based on a case by case basis, there are some situations in which an individual doesn’t need to purchase it. In order to simplify it, life insurance normally is to be used if the breadwinner passes, however without dependents, you may not need this extra coverage. On the other hand, a situation that would encourage you to have life insurance coverage even without or with minimal dependents would be if you’re struggling with debt and trying to pay it off.

Am I eligible for coverage if I have a serious health condition?

If you have a pre-existing health condition prior to applying for insurance, you can still get coverage, but this has the potential to impact your rates. If you’re approved for a policy at a higher rate than preferred, yet your condition can be improved with lifestyle changes that boost your health, you have a good chance of improving your payment situation. If your health condition cannot necessarily be improved (such as a chronic illness), your agent can still work to find the lowest premiums available.

What are the types of health insurance plans available for seniors?

There are several types of care plans available which will result in various premiums, co-pays, and deductibles. It’s important to understand the differentiators between plans and choose according to your situation, including how often you require visits to a physician.

  • Health Maintenance Organizations (HMOs) – Plan that requires you receive service from healthcare providers within the HMO network, excluding specific medical emergency circumstances.
  • Preferred Provider Organizations (PPOs) – Plan that allows you to choose which doctors you see and hospitals that are outside the network, the cost of this plan is higher most often due to higher co-payments and deductibles.
  • Point-of-Service Organizations (POS) – Plan requires your primary care physician handles and maintains your visits outside their care. You are able to choose your preferred doctors or hospitals, once again this will be at a higher cost.

What if I want to leave a legacy?

You guessed it, retirement is not always a cheap lifestyle and can quickly deplete much of the money you’ve saved up over the years. If you desire to leave a certain amount of money for members of your family, you might want to consider life insurance as a way to leave a legacy. The death benefit, a portion of your insurance, would be provided to your family and loved ones as a means to the financial assets left behind. This legacy can be given to your kids or even your grandchildren.

Leaving a legacy isn’t only about the financial end, it’s also very much about the person you’ve become and the way you have lived your life. You can feel better about knowing your family will be financially secure due to your legacy and spend your time focused on what matters—making memories during these later years of your life.

It can feel like an overwhelming and time-consuming process to decipher your future needs involving life insurance, health, and care plans. It’s important to consider your lifestyle, personal health, family structure, and where you intend to place your wealth for years to come during this process. Luckily, today there are plenty of convenient online tools and information available to help you personalize a plan that will best suit your needs and budget.

With so many options available, devote as much time as you need to revisiting your life insurance coverage to ensure that your money and family are secure, and help put your worries to rest.

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