It is difficult to think about death regardless of your age, but life insurance is a necessary consideration. No one wants to leave additional financial burdens for family members to deal with. If you have put off getting life insurance and now think that it is too late, think again.
 

 
Many life insurance companies specialize in offering policies that cover funeral costs and provide for your family after your death. With funeral expenses often running into the thousands of dollars, getting a life insurance policy is a way of continuing to provide for and protect your family even after you are gone.

Choosing life insurance is not an easy task and with increased age many agencies simply refuse to offer life insurance for seniors. However, this is not true of all of them. Understanding the life insurance jargon is half the battle, and deciding which type of policy is best is half the battle. Use this quick overview and discover the senior life insurance policy that fits your budget. You may be surprised to learn how you benefit from a life insurance policy even while you are still living. The following includes information about basic terminology and types of policies, and then for your convenience there are at least five agencies listed who issue policies to seniors.

Types of Life Insurance Policies

Several types of life insurance policies are available for seniors. Each comes with its own pros and cons. Here is a quick list:

• Term Life Insurance Policies: These are issued with a time limit on them (a term). If you live past that term, then there is no payout. However, as a senior, if you select a longer term then the odds increase that there will be a payout.
• Whole Life Insurance Policies: As the name implies, this policy remains in effect for as long as you live. There is no term and no expiration until you pass away. If you just want to set it and forget it, this may be the perfect type for you. The additional benefit is that once there is enough built up in the account you can borrow against it.
• Universal Life Insurance Policies: These policies are similar to whole life but you cannot borrow against it. It does not increase in value over time. It is still set it and forget it and is cheaper than whole life insurance. You must be very responsible in paying the premium each month or you could face cancellation.
• Indexed Universal Life Insurance Policies: Leveraging the power of the stock market, your monthly premium is invested. Thus, the value of your policy is linked to the stock market index. This is generally not suggested for seniors because of the inherent risk. A Variable Universal Life Insurance Policy is similar but the investing is focused on equity accounts, bonds and money markets.

Typical Life Insurance Jargon

Taking the time to familiarize yourself before purchasing a senior life insurance policy can save you hundreds of dollars. Luckily, there are just a few technical words you need to understand. When the agent uses the term “underwriting” it is a nice way for them to assess what the risk to the company is if they insure you. The golden word you want to hear is “fully underwritten” because it means they have determined you are a low risk and they can offer you a low monthly rate. Since you are a senior you are unlikely to be offered what is called a “simplified issued policy” which means the company has waived the necessity for a medical exam. However, a guaranteed issue policy, which is a common type offered to seniors, requires no medical exam and no prying questions. Expect to pay top dollar for that type of policy, and many companies have clauses that stipulate a partial payout to your beneficiaries if you die within a certain number of years after taking out the policy. This type of policy should be viewed only as a last-ditch choice.

Top Senior Life Insurance Companies for 2020

Globe Life Insurance

This senior life insurance company has been around for a while and often features celebrities who are seniors as their spokespersons. Their big draw is that you only pay a dollar for coverage. However, this dollar for $50,000 of coverage is only for the first month. After that you are charged based on your age using their rate chart. The rate varies by state, so make sure when you check this chart you select the state in which you are currently living. Rates also vary by gender, so make sure you are referencing the chart that corresponds to your gender.

Haven Life

Haven Life is the senior insurance policy division of the larger MassMutual company. This is a medically underwritten policy and is cheaper than many of the other senior life insurance policies. It makes it a very popular product among seniors because of this. You can apply online and most of the paperwork can also be done virtually. There is a catch, however. Haven Life accepts applications up and until the day before your 65^th birthday. Therefore, if you are older than 65 you are out of luck with this one. Expect to pay an average of $62 a month.

AIG Life Insurance for Seniors

This company offers a wide range of services for seniors. One of its best features is it allows you to customize your policy to fit your needs. At least 18 different permutations are possible including a guaranteed issue policy that does not require a medical exam. Policy holders for this type of insurance pay around $40 a month.

Mutual of Omaha

Known for years as sponsoring the Wild Kingdom show on television, this company has been around since 1909. They offer a unique package deal for seniors in that they allow you to take out a term insurance policy, but then extend it each year after you turn 80. This is allowed up until you turn 95. If you outlive that policy, then convert it into a permanent policy so you do not lose any of your investment. There is no medical exam or questionnaire required for a whole life or universal life insurance policies. Mutual of Omaha also offers many riders and add-ons to the policy so you can customize it. This includes insurance to cover long term care such as a nursing home. Expect to pay at least $40 a month, but rates vary depending on gender, age and state.

Fidelity Life

Fidelity Life offers several policies developed exclusively for seniors. This company has been in business since 1896. The RAPIDecision Senior Whole Life and RAPIDecision Senior Life Term are for seniors over the age of 50. They allow you to tailor the packages to your goals and include a wide range of optional riders. If simple end of life coverage is all you want, they offer this as well. Expect to pay around $56 or more for these policies.