Reader’s Question:

I’m interested in getting a term life insurance here in Utah since I am already a senior citizen, what are my options?

Penelope

Salt Lake City, UT

Term life insurance for senior citizens is a useful choice but it has to be cautiously planned. Your options for a term life insurance policy in Utah include:

No Exam Term Life Insurance – this kind of senior citizen life insurance would allow you to have coverage with no physical exam, but you have to expect higher rates. A number of life insurance companies would ask you to have a physical exam and their premiums would be based on your health condition and your age. For that reason, you have to be careful of those life insurance companies because you would see a lot of them that would like to get your business and would not base your life insurance policy on a medical exam whatsoever.

Level Term Life Insurance – this would let you pay the same life insurance rates each year for the whole term of the life insurance policy and the benefits will not change in the course of the policy. In some cases, there’s the trap of prices rising significantly during the renewal period.

Convertible Term Life Insurance – this would let you convert the coverage into a permanent policy whenever you like. There is no physical exam, but the life insurance rates could increase.

Decreasing Term Life Insurance – this type of senior citizen life insurance would pay a death benefit that drops off eventually, but the payments are generally the same.