If you’re an older adult, life insurance might not fall high on your list of financial priorities. Maybe you’ve raised your children and watched them raise theirs, or you’re debt free and have the savings to enjoy retirement in a home you’ve already paid off.

Unfortunately, for some seniors, the situation looks a little different. Around a third of all baby boomers report some degree of financial insecurity, according to LIMRA’s 2022 Insurance Barometer Study. Whether you’re financially secure or working toward that money milestone, life insurance can protect the people who matter most to you.

How does senior life insurance work?

As you get older, your family, health, and lifestyle change. So, too, do your life insurance needs. Perhaps you lost your employer-provided plan when you retired, or you’ve outlived your term life insurance. Fortunately, you can take a few simple steps to safeguard your family’s future with a senior life insurance plan.

Determine what kind of life insurance you need

Seniors have options when it comes to life insurance, from term life to permanent policies and those designed to cover final expenses. Comparing your options can help you find the best policy for you and your loved ones.

• Term life insurance policies provide affordable coverage for a fixed period. Fidelity Life offers RAPIDecision® Senior Term Life insurance specifically for older adults between 50 and 70. You can apply for 10-year, 20-year, or 30-year policies worth between $10,000 and $150,000 in coverage. Senior term life is an excellent option for relatively healthy older adults who want to contribute to expenses like a partner’s retirement or grandchildren’s college tuition.
• Whole life insurance policies provide coverage through the end of your life while accruing some cash value. Fidelity Life’s RAPIDecision® Senior Whole Life insurance is offered to seniors from age fifty well into their 80s. The policy provides up to $150,000 in coverage for a level monthly premium. While these policies cost a little more than term life policies, they’re a great choice for older adults who still have loved ones depending on their income, need to cover a larger expense like a mortgage, or hope to leave an inheritance.
• Funeral insurance is a life insurance policy with a smaller coverage amount designed to provide loved ones with cash to cover the cost of a funeral or burial. And loved ones may need that extra financial support considering the average cost of a funeral is over $9,000. Life insurance can equip your loved ones to cover that staggering, sudden cost. RAPIDecision® Final Expense insurance provides your beneficiaries a payout between $5,000 and $40,000. The death benefit can help cover your end-of-life expenses, like a funeral, burial, or remaining medical bills.
• Guaranteed issue life insurance is a type of permanent life insurance with no health requirements. RAPIDecision® Guaranteed Issue life insurance offers up to $25,000 in coverage for your final expenses. You don’t need to answer any health questions or complete a medical exam for approval. While guaranteed issue policies come at a slightly higher premium than standard final expense policies, they’re an accessible option for those with significant barriers to coverage, like major health issues.

Get a quote and apply for a policy

Once you’ve narrowed down the policies you’re interested in, you can get a quote to identify the best fit for your budget. Then, you’ll begin the application process.

Your application will likely include questions about your background, income, and lifestyle. Luckily, many policies geared toward seniors don’t require a medical examination. Instead, some applications may include a short health questionnaire, or there will be no requirements for guaranteed issue policies.

It can take weeks or even months to receive approval from other insurers, but with Fidelity Life’s RAPIDecision® plans, your coverage could start the same day you apply.

Pay premiums

If you’re approved for a policy, you’ll begin paying premiums. Your premium payments will depend on several factors, which may include coverage type and amount, age, gender, and health status. Typically, you can pay premiums on a monthly or annual basis to keep your policy active. Keep in mind if your premium payments lapse, you could lose life insurance coverage, meaning your loved ones would no longer have the death benefit protection.

Tell beneficiaries about the policy

Once you’ve been approved for a policy and started paying premiums, the coverage is active. However, it will only benefit those you love if they know the policy exists!

Make sure your beneficiaries know you’ve purchased the policy and how to file a claim with the life insurance company after you pass away. While the process is relatively simple, it isn’t automatic. Beneficiaries will have to inform insurers of your passing and ensure they have all applicable documents to initiate the process.

It’s also important you share your intention for the money, including any specific expenses you would like the benefit to cover. After all, once you’re gone, beneficiaries have complete discretion over the funds, so it’s important that they understand your wishes.

Rest assured that loved ones are protected

With senior life insurance, you can feel confident that your loved ones will receive the financial support they need when you’re gone. Whether you’ve taken out a life insurance policy to cover funeral expenses, pay off debt, or leave a gift for a charitable organization, you can take solace in knowing it will support the people or organizations you care about most.

Get a quote for senior life insurance with Fidelity Life

Fidelity Life is passionate about making life insurance affordable and accessible for everyone, including older adults. For more information on senior life insurance, get a quote online or over the phone with a licensed insurance agent today.