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5 ways seniors can pay less for life insurance

If you're a senior considering life insurance then you should apply early to secure a lower rate. Getty Images

When searching for the right financial protection for you and your loved ones, it pays to do your research. You don't want to overpay for services like car insurance or life insurance but you don't want to underinsure yourself either. There's a fine balance between budget and goals. Ideally, you can secure both cost-effective and valuable financial security.

For seniors, many of whom live on a budget tied to retirement savings and Social Security, this is crucial to get right. Life insurance for older adults can be very valuable to have, but it needs to be purchased in the right amount for the right price

Fortunately, there are multiple ways seniors can pay less for life insurance without having to sacrifice quality. We will explore 5 of these strategies below.

If you're in the market for life insurance currently then start by getting a free price quote now.

5 ways seniors can pay less for life insurance

While everyone's personal circumstances and goals are different, there are some reliable ways seniors can pay less for life insurance. Here are five to know:

Apply early

The older you are, the riskier you are to insure. The risk the insurance provider takes on will then be reflected in higher premiums charged to the policyholder. So don't wait to get a policy. Every birthday that passes will leave you paying more than you would have if you had purchased a policy at an earlier date. So, if you're 65 years old and seriously considering life insurance don't wait until you're 66 or 67. Each year a policy will cost more (and coverage options may be limited).

Get a free price estimate now to see what you're eligible for.

Shop around

Just like you would shop around for the best prices for a home or a car, you should do the same for life insurance. Ideally, you should get price quotes from at least three providers to establish a baseline for coverage and cost. This will give you a better idea of what's cheap and valuable and what just appears to be. Just make sure to get the same type of quote from each provider. So if you want a 10-year term life insurance policy for a 70-year-old male for $100,000, make sure you get a quote from a second and third provider for the same length, type, age, sex and amount. By doing this you can more accurately complete an apples-to-apples comparison. You can use the table below to start shopping for life insurance providers now.

Take a medical exam

No-exam life insurance is a great way for seniors to get guaranteed protection. Skipping the medical exam can help you secure a policy that may have otherwise been rejected or severely limited if the results were substandard. With that being said, because there's no medical vetting, no-exam life insurance is more expensive than policies that require the exam. So, if you're healthy and willing to prove it then schedule and sit for the exam. It will save you money on your premiums.

Apply for a smaller amount

Simply put: The more you ask for in coverage the more you'll be charged for it. A $1 million life insurance policy will cost significantly more than a $500,000 policy. And a $500,000 policy will cost more than a policy for $100,000. Do a realistic appraisal of what you need the money for and then only apply for that amount. It will help keep costs low.

Get term instead of whole

Whole life insurance is attractive for many applicants due to its length (it lasts for the duration of the policyholder's life) and its options (it comes with a cash reserve that can be accessed while alive). But those two features come with an extra price.

Term life insurance only lasts for a pre-determined time frame and it doesn't have a cash element. But it's significantly cheaper than whole life insurance policies because it doesn't have the same options. 

For seniors who need the financial protection life insurance can provide, but don't want to break the bank to add all the bells and whistles, term life insurance makes the most economic sense.

The bottom line

Life insurance is valuable for adults of all ages, including seniors. For older adults to get the most out of a plan, however, they need to make sure the cost is manageable. They can do this by applying for a policy early and by shopping around for the best deal. Seniors should consider taking a medical exam (if they're healthy) and applying for a smaller amount of coverage. They should also look to term policies instead of whole ones if they want to pay less for life insurance.

Start today by getting a free price quote to measure against.

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