How to buy life insurance for seniors

No one likes to overpay for a product or service. At the same time, underpaying could lead to a reduction in quality or coverage. This is true for most purchases, but especially so for insurance policies. Policyholders need to find the right balance between cost and coverage so that they can rely on their insurance when needed without getting stuck paying for protections they don't need and won't use.

For those considering life insurance, it's crucial to understand how to correctly purchase it. While many people can get a baseline of protection via their employer (and a supplemental policy to fill in the gaps), retirees and seniors may not have the same options. As such, it helps for seniors to know exactly how to buy life insurance.

Start by getting a free price quote here so you know what to expect.

How to buy life insurance for seniors

Here are four ways, in chronological order, that seniors can buy life insurance.

Understand your goals

What do you need life insurance for, exactly? Do you want it to cover end-of-life expenses or do you need it to leave as an inheritance for loved ones? Maybe you still have outstanding debts, like a mortgage, that you want a life insurance payout to be able to cover in your absence. Before getting started, understand the reason or reasons why you want life insurance. This will not only help you narrow down the amount you need, but it will also help you clarify which life insurance type can best help you achieve your goals.

Get a free life insurance price estimate today to learn more.

Review your insurance types

There are multiple life insurance policies available — and not all will be applicable for your needs and goals. Accordingly, once you've determined your goals you'll better be able to determine the right life insurance type. 

It could be term life insurance, which is generally the least expensive (although it comes with a definitive end date). Or, it could be whole life insurance, which has a cash value and lasts indefinitely. No-exam policies could also be beneficial for seniors concerned about what a medical exam would potentially reveal. But look into all types first to make sure you've secured the best type.

Shop around for providers

When it comes to financial products and services, it makes sense to shop around to find the best rates and terms. Life insurance is no different. 

So, once you've determined your goals and understand the types of policies available, you should start shopping around for providers. Get quotes from at least three different companies to compare against. Just make sure to complete an accurate, apples-to-apples comparison. 

For example, don't get a quote for a 20-year term life insurance policy for $150,000 from one provider while getting a quote for a 15-year term life insurance policy for $100,000 from a second. Make sure your insurance type, length, amount and other factors are consistent. This will help you determine which provider is offering you the best coverage — and which one just seems like they are. 

Start researching providers here or via the below table.

Speak to a professional

Life insurance involves securing coverages for hundreds of thousands of dollars and perhaps millions. And it can be the difference between being financially secure and not. So it's important to get it right. 

As such, seniors shouldn't hesitate to speak to a financial advisor to get their take and help. There are also plenty of professionals that work for the life insurance companies and can adequately answer any questions you may have. Speak to both to better inform your decision-making.

The bottom line

Life insurance can be valuable for policyholders of all ages. For seniors to secure the most value, however, they should take certain steps. This includes a full understanding of their goals and clear knowledge of the types of life insurance available. Once those are in order, seniors should then shop around to find the best provider for their needs and, during the whole process, they should consider speaking to both representatives of the life insurance companies in consideration and a separate financial advisor to answer their questions and to better guide them toward the right provider and policy.