By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    benefits of using protein powder to build muscles
    Protein Powder for Muscle Mass: Everything You Need to Know
    December 12, 2021
    changes brought on by blockchain in healthcare
    Technology In The Healthcare Industry
    March 28, 2022
    What Does Core Body Temperature Say About Health?
    August 17, 2022
    Latest News
    Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
    May 16, 2025
    Learn how to Renew your Medical Card in West Virginia
    May 16, 2025
    Choosing the Right Supplement Manufacturer for Your Brand
    May 1, 2025
    Engineering Temporary Hospitals for Extreme Weather
    April 24, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    FDA Approves Diabetes Pill
    May 2, 2011
    Patient Gets Drunk on Hand Sanitizer
    June 20, 2011
    Cultivating Health Improvement
    July 20, 2011
    Latest News
    Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
    May 18, 2025
    The Critical Role of Healthcare in Personal Injury Recovery: A Comprehensive Guide for Victims
    May 14, 2025
    The Backbone of Successful Trials: Clinical Data Management
    April 28, 2025
    Advancing Your Healthcare Career through Education and Specialization
    April 16, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Options For Seniors Who Outlive Their Life Insurance Policy
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health care > Options For Seniors Who Outlive Their Life Insurance Policy
Health care

Options For Seniors Who Outlive Their Life Insurance Policy

John Henning
Last updated: February 16, 2021 7:08 pm
John Henning
Share
5 Min Read
SHARE

The average life insurance policy is worth about $250,000. A basic life insurance policy plan could cost anywhere from $50 to $70 a month. However, these are the average rates. How much you ultimately pay depends on the type of life insurance you apply for.

One of the most affordable forms of life insurance is term life insurance. A standard 10-year term life insurance premium for a $250,000 policy can cost $650 a year, for example. Term life insurance policies are a lot more affordable than variations of permanent life insurance policies, which offers coverage for a lifetime. That is the main difference and limitation of term life insurance.

Term life insurance only offers coverage for a limited, predetermined period. If you buy a 5-year term life insurance policy and die one day after the 5-year term, then the policy becomes null and void. No death benefits will be paid out and years of premium payments are essentially wasted. Outliving a term life insurance policy can happen to middle aged and elderly people who bought life insurance later in life. There are a few options seniors can employ before a policy runs out, and less so if you outlive your policy.

Return of Premium Rider If you know that you are within a year to six months of outliving your current life insurance policy, you have a few options. Hopefully, your current policy includes a return of premium rider. With an ROP rider, you can get every premium payment refunded, tax-free, if you outlive your policy. An ROP policy refund is tax-free because it is a refund and not a payment. For example, if you paid a monthly $70 premium for a ten-year policy, then you could get back $8,400 in a refund. Still, only the premium would be refunded. The accrued cash value of the policy would revert back to the insurance company.

More Read

How Anesthesia Can Be Delivered With Anesthesia Machines
Here is What You Need to Know About Life Insurance
Can You Buy Life Insurance with a Pre-Existing Condition?
Pages To Follow On Instagram To Keep Fit During COVID-19 Lockdown
What Are the Main Forms of Hearing Loss in Adults?

Also, a term life insurance policy with an ROP rider can be as much as 30% more expensive than an average policy. Your best option is to include such a rider when you buy the policy. You may be able to include an ROP rider as a conversion later on. Still, you would only be refunded for premiums paid from the point that a conversion is initiated.

Term Life Conversion Rider Almost all term life insurance policies include a conversion rider. This is a policy option where you can convert your term life coverage into form of permanent coverage. Like a whole life insurance policy, for example. You should be able to lock in your current premium rate or even lower your coverage needs. The downside is that permanent life insurance policies can be anywhere from 7 to 10 times more expensive than term life insurance. Again, you would have to initiate this option before your policy runs out.

Senior Life Insurance The truth is that if you have outlived your term life insurance policy, you don?t have many options. You must essentially start over. Also, the older that you are, then the closer you get to the end of your life. As morbid a thought that is, insurance company actuaries take information like this seriously. Older and unhealthy applicants pose serious, potential payout risks. There are several senior life insurance options available to you.

If you have outlived your life insurance policy, burial insurance is an affordable alternative you should consider. Burial insurance is a truncated version of a traditional life insurance policy. You can name beneficiaries or borrow against its cash value, though it may not be a good idea.

Burial insurance benefits should be used for paying for all of your funeral expenses. An average burial insurance policy can be valued at about $25,000. You can apply by phone. There is usually no need for a medical exam. Also, your application could be approved in minutes or hours. You could pay a few dollars or tens of dollars a month in premium for a basic policy. Any named beneficiary will be responsible for paying all of your final expenses.

Final Thoughts: Make the Best of Limited Options Burial insurance is affordable, easy to apply for, and may be your last chance for life insurance. Especially if you are a senior citizen who has outlived their life insurance policy.

TAGGED:life insurancesenior citizens
Share This Article
Facebook Copy Link Print
Share
By John Henning
John Henning is a nutritionist, freelance writer, and food blogger that provides accessible nutrition info to help people live a healthier life. His unique approach to nutrition emphasizes nutrient-dense, whole foods and healthy habits rather than restrictive diets.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Do You Grind Your Teeth at Night? Here’s How Night Guards and TMJ Treatments Can Help
Do You Grind Your Teeth at Night? Here’s How Night Guards and TMJ Treatments Can Help
Dental health
May 21, 2025
The Secret To A Confident Smile: Top Tips For Better Teeth
The Secret To A Confident Smile: Top Tips For Better Teeth
Dental health
May 21, 2025
Clinical Expertise
Building Smarter Care Teams: Aligning Roles, Structure, and Clinical Expertise
Health care
May 18, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
Health
May 15, 2025

You Might also Like

Health careWellness

Science Reveals 3 Surprising Reasons We’re Gaining Weight

October 3, 2018
Health care

Your Ultimate Guide to Choosing the Perfect Medicare Plan

April 6, 2020
Health care

What Is The Future of Medicare And Its Workforce?

April 19, 2019
warning signs of addiction
AddictionHealth careWellness

Health Problems That Say You Have an Addiction Problem

May 7, 2021
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?