Life insurance is important even after retirement. However, there are 7 ways seniors can save on life insurance:
#1: Downgrade Your Plan
When people age they typically need less insurance because there are fewer financial obligations (the house is close to being paid off, children are out of the nest, etc). Now is the time to consider downgrading your plan to save money on life insurance.
#2 Consider a Group Plan
If you or your spouse currently work the employer may provide a group plan for life insurance. Even if you plan to retiree soon, the employer may extend the service. Or…
#3 Consider a ‘Groupie’ Option
If you are no longer employed do some homework and see if any group or organization you currently are a member of provides their own life insurance policy. For example, AARP has a life insurance plan you can join as a ‘groupie’.
#4 Make the Companies Compete for You
Here is a noble yet very realistic thought: make the companies compete for your business. The bottom line is some insurance companies will price age groups differently. At the end of the time, they may need your business more than you need them so shop around.
#5: Avoid Whole Life or Guaranteed Life Insurance Policies
Whole life and guaranteed insurance policies should be considered a last option. They rarely save you money and the death benefits come with strings attached.
#6 Compare Savings to Death Benefits
How are you doing with your savings or retirement benefits? How are your investments, if applicable? Life insurance is all about preparing for the worst-case scenario. If your savings and benefits are stellar, you might not need much help (if any) from life insurance.
#7 Ask Yourself, Do I still need life insurance?
In the end, if you still haven’t made up your mind may be a life insurance policy is no longer for you. There are still several reassurances for having life insurance just make sure that it is worth the cost.