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
    physical health
    5 Ways Playing Games Can Improve Neural and Physical Health
    September 9, 2022
    Reasons For Hair Loss and Its Treatment
    Reasons For Hair Loss and Its Treatment
    February 16, 2022
    healthcare organization
    5 Actionable Strategies For Healthcare Organizations
    August 15, 2022
    Latest News
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
    The Best Home Remedies for Migraines
    June 5, 2025
    The Hidden Impact Of Stress On Your Body’s Alignment And Balance
    May 22, 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
    What Would You Do?
    January 28, 2013
    How Martin Shkreli is driving down drug prices
    May 24, 2017
    Here’s How The Body Deals With Pain – And How You Can Treat Yours
    December 31, 2018
    Latest News
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
    Top HIPAA-Compliant Messaging Apps for Healthcare Teams
    June 25, 2025
    When Healthcare Ends, the Legal Process Begins: What Families Should Know About Probate and Medical Estates
    June 20, 2025
    Preventing Contamination In Healthcare Facilities Starts With Hygiene
    June 15, 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
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

Recovering from Slip and Fall Injuries: Physical and Emotional Considerations
Recovering from Slip and Fall Injuries: Physical and Emotional Considerations
Why We Need to Address Racial Disparities in Maternal Health Care
What distinguishes functional medicine from holistic medicine?
How Healthcare Professionals Can Educate Patients In Various Specialties
Impacts of Drug Abuse on Current Generation and Ways to Counter Them

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

9 Lifestyle Tweaks That Can Add Years to Your Life
9 Healthcare Lifestyle Tweaks That can Add Years to Your Life
lifestyle
July 11, 2025
car accident lawsuit
Let Your Lawyer Handle the Work Before You Pay Medical Costs
Policy & Law
July 6, 2025
women dental care
What Is a Smile Makeover and How Much Does It Cost?
Dental health
June 30, 2025
HIPAA-Compliant Messaging Apps
Top HIPAA-Compliant Messaging Apps for Healthcare Teams
Global Healthcare Policy & Law Technology
June 25, 2025

You Might also Like

Health careHome HealthWellness

Can Exercise Improve Your Mood And Mental Focus?

November 2, 2018
technology in health insurance
Health care

7 Major Technology Trends Shaping the Health Insurance Industry

June 29, 2021
Mental Health Problems at Workplace
Health carePolicy & Law

Tips For Avoiding Workplace Injuries At The Office

July 16, 2019
Managing Mental Health In Cancer Patients: A Holistic Perspective
Health careSpecialtiesWellness

Managing Mental Health In Cancer Patients: A Holistic Perspective

May 3, 2018
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?