Over 65 and Need Life Insurance? 10 Risks (And Tricks) You Need To Know

Do you still need life insurance once you're retired — and is it too late to get a policy if you do?

Life insurance is designed to provide financial protection to your loved ones after you die. Premiums tend to be more expensive if you're older, but that doesn't mean you can't get life insurance protection at 65 or even older.

Before you call your insurance agent or go online to get quotes, check out our tips for what to know about getting the coverage you need to eliminate some money stress for your heirs.

Just because you are older doesn't mean the ship has sailed for getting life insurance. While you will likely pay higher premiums than your younger counterparts, there are still affordable coverage options for people over 65.

Ten-year term policies start at a couple of hundred dollars per month, depending on your coverage, health, and the insurance company.

If your term life insurance is expiring, you may be able to extend the policy by renewing it.

The upside is that you probably won't need to provide proof of insurability with a renewal. The downside is that your premiums will likely be higher now that you are older. So, compare the benefits of getting a new policy to extending an old one.

Renewal may not be an option, however, if you received group coverage through your employer.

Term life insurance provides adequate benefits for many people. This is the cheapest form of coverage and is intended to replace income or cover final expenses after you die. Once your policy term expires, so does your coverage unless you can renew the policy.

Permanent life insurance provides some additional features, such as a cash-value component. This type of policy lasts for as long as you continue to pay the premium.

However, permanent life insurance coverage is more expensive than term life.

Some life insurance companies require potential policyholders to undergo a medical exam, while others do not. When an exam is required, underwriters use the information to determine whether or not to issue a policy and at what cost.

If you go with an insurer that doesn't require a medical exam, be aware that you might pay a higher premium or have lower levels of coverage.

The insurance market is a competitive one, so it pays to check out policies with multiple companies.

Play around with coverage options, too, so you can get the best policy for your needs and goals.

Long-term care is expensive. To address this, some insurance companies have created policy features — such as an accelerated death benefit or life settlement — that can help you tap your life insurance policy to cover these costs.

So, look for these types of policies if this coverage option is important to you.

Each policy has its own set of rules. That means it's important to read the fine print carefully.

To make sure your policy has all the features you need, scrutinize the documents and ask your broker questions before you sign the paperwork.

Insurance brokers that work with multiple companies can help you shop around for the best features and premium rates.

Just be sure you have a clear understanding of how your agent is compensated so you know you are getting the best policy for your situation. It is often best to avoid working with agents who earn a big commission for pushing certain products.

Some seniors are more likely to need life insurance than others. For example, this coverage might make sense if you still have dependents who rely on you financially or if you want the policy to cover estate taxes after you die.

However, other seniors probably do not need coverage. So, determine whether you really need life insurance before purchasing a policy.

If you have life insurance, it is important to let your beneficiaries know that you have purchased a policy. While there are sometimes ways to discover whether you had coverage after your death, doing so can be a headache for your heirs.

Store your life insurance documents in a safe place and give your beneficiaries copies so they don't have to search for the information after you die.

Depending on where you stand financially, life insurance can be an important part of your estate plan. Whether you need insurance and how much depends on your situation and financial goals.

Remember, it's never too late to invest in your family's future. Consider your needs, shop around for the best premium rates and features, and consult with a knowledgeable insurance agent or broker if needed.