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Affordable Term Life Insurance for Baby Boomers and Seniors

 

Is term life insurance the right type of policy for you?

Let us help you find the best value.

Call LifeNet Insurance Solutions today at

(800) 698-7033

Term Life is Insurance for a Specified Amount of Time

 

Term life insurance is a popular life insurance choice for many people.

Finding the best term life insurance for seniors and baby boomers is different than when you’re looking for life insurance in your younger years.

Premiums for term life insurance are less expensive than permanent life insurance options. 

Term policies work great if you need coverage for a specific time period.

 

To learn more download Life Insurance 101.

 

Types of Term Life Insurance for Seniors and Baby Boomers

Level Term Life Insurance 

 

Level Term Life Insurance is not only the most common type of life insurance, it provides the best value in term coverage.. 

Level term policies keep the face amount and premium the same for the entire term period.

Once this term period ends, premiums will increase drastically. This is because the insurer is offering  you coverage for a specific time; not for a longer period than you chose.

Rather than keep this policy we suggest purchasing a new one or converting this term life insurance policy before conversion options expire. More information on conversion below.

Term life insurance is available with and without medical exams which include blood and urine testing.

Policies that require examinations will be more affordable than those without any.

Free Term Life Insurance Quote

 

Return of Premium Term Life Insurance

 

Return of premium term life insurance will pay you back for your premiums if you meet certain criteria. 

Premiums for this type of term policy are higher than for level term products. However, at the end of the term period you will receive all of your paid premiums back. 

Usually there isn't any return of premium until you get to the very last years of the term period. Only by keeping the policy for the full term are you eligible to receive all your premiums back.

It sounds like a good deal, but the facts are:

  • Most people do not keep their term policies for the entire time.
  • Many people are unwilling to pay more for this benefit.

Only a few companies have return of premium policies. They generally aren't the lowest cost carriers to begin with, so the premium can be quite higher than the lowest cost level term policy.

 

Annual Renewable Term Life Insurance

 

Annual renewable term life insurance is term coverage where the premium increases every year. It is the perfect product if you need coverage for a very short time.

The initial premium(s) will be usually lower than a level 10 year term policy. If you need coverage for more than a few years, a level term product is still the best option.

This type of policy is only available from a few insurance companies.

Decreasing Term Life Insurance

 

Decreasing term life insurance is sometimes called mortgage insurance. The face amount of the policy decreases annually, but the premium remains the same.

Decreasing term insurance is not less expensive than level term. For this reason, we don't see the advantage of this type of coverage. 

Level term insurance is less expensive and gives you more payout as the years progress.

term-life-insurance-by-age-2019

 

Younger Ages can Purchase a Longer Term

 

Term life insurance lasts for a specific period of time, 10 years, 20 years up to 30 years. 

 

30 year term policies are available up to age 55 *

20 year term policies are available up to age 70 *

10 year term policies are available up to age 80 *

 

* Some carriers have lower limits. These ages are for non-tobacco applications. Maximum age for tobacco applicants is lower.

When is Term Life Insurance Best?

 

The type of life insurance that is best for you depends on what you are trying to do.

If you need coverage for a certain period of time, then term insurance may be right for you. 

  • Cover the balance of a mortgage.
  • Cover any other loan.
  • Coverage for children's college.
  • The younger you are, the more likely term insurance is the right buy.

If you need coverage for your lifetime, for final expenses or any other need, then term insurance is not for you. You need a permanent product.

Underwriting Term Life Insurance

 

Underwriting term life insurance for seniors and baby boomers includes the following:

  • Age and build (height and weight)
  • Current health
  • Health history
  • Medications
  • Family health history
  • Current lifestyle

By reviewing the above information, the insurance company underwriter will determine your health rating. 

That health rating will determine the cost of insurance. 

Our agents will give you their best estimate of your rating after discussing your heath information, but only the insurance company can give you a firm offer.

 

Term Life Insurance Pricing

 

Term life insurance quotes depend on your health rating. The ratings are:

  • Preferred best
  • Preferred
  • Standard plus
  • Standard
  • Table ratings

Once the underwriter has all the information they require, your health rating will be decided. This is when the real price for your insurance is known. An agent can only give you their best guess.

At that time you can make any adjustments to the coverage, lengthen or shorten the term, increase or decrease the face amount, to keep the policy at a comfortable price.

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Term Conversion

 

Term conversion is the ability to change your term policy to a permanent policy without evidence of insurability. 

 

This is an important free rider available on most term policies.

 

Has your health deteriorated since you took out your term policy? Term conversion may allow you to get permanent coverage at an affordable premium.

 

How Term Conversion Works

 

When you purchase your term life insurance policy, there will be a section in the contract that explains exactly how the conversion rider works.

  • Some companies allow conversion for the full amount of the level term, up to a certain age. Some allow conversion for a specific period of time, although it will never be longer than the level term.
  • Some carriers allow all permanent policies to be chosen. Some allow a limited number of policies, and some allow only one policy for conversion.
  • The new premium will be based on your current age at conversion. It will have the same or closest health rating as your term policy. It will be based on current life insurance rates.

 

Conversion options are one more thing to consider when buying a term policy. There is no cost for this rider, but having it available when you need it can save you a great deal of money.

Imagine that you took out a term policy and got a preferred rating (second best possible rating). Years later, you have significant health issues and could only get a table rating. If you convert your policy, you would be rated preferred. You can see how beneficial this could be.

Benefits of an Independent Life Insurance Agent

 

Utilizing a LifeNet Insurance Solutions independent agent is free! In addition to having a professional and knowledgeable resource at your fingertips our agents can work with companies you can't access on your own.

If you’re currently searching for affordable life insurance for seniors via online quote engines, our independent agents can simplify the process. They will send you a list of all the carriers and prices.

When you apply for a fully underwritten policy the insurance underwriter may request additional information. Having an agent who is efficient with these processes will help avoid any application delays.

LifeNet Insurance Solutions’ agents are also extremely knowledgeable when it comes to the underwriting process and which policy will work for your situation and goals.  Contact us today to receive more information about our term life insurance quotes!

Get Your Free Copy of "Life Insurance 101" to learn more