Worried you’ve waited too long to secure life insurance coverage, or the policy you have isn’t comprehensive enough? You’re not alone. According to LIMRA’s 2018 Insurance Barometer, one in five life insurance policyholders don’t think they have enough coverage. As an older adult looking to address those worries, you may be surprised how many options for life insurance coverage you have.

Benefits of Life Insurance for Older Adults

Once you’re retired, you might assume the benefits of life insurance, namely offsetting income loss upon death, no longer apply to you. It’s true that for some retirees, paying premiums for life insurance doesn’t make sense when your financial stability isn’t relying upon a paycheck.

However, if you’re working to pay off a mortgage or credit card debt, the security a life insurance policy offers loved ones could be an asset. Here are other common reasons older adults choose to invest in life insurance.

• Medical expenses
• Funeral costs
• Inheritance
• Charity funding
• Young children
• A dependent or disabled spouse
• A large estate

In these situations, the support life insurance affords may tip the scale in your decision to secure coverage. Even smaller things like cushioning your estate tax for beneficiaries can really make a difference.

Choosing a Life Insurance Policy

Any life insurance discussion should begin with two questions: Who will experience the most hardship if you die, and what would help them avoid suffering financially? Whether it’s enough to cover the remaining balance of your mortgage or setting aside several years of income, how much coverage you need depends on the people and situations you leave behind. Once you’ve answered these questions, you can tailor the length and type of life insurance to fit your needs.

How long will you need life insurance?

If you’re still working, your coverage should straddle the gap between now and when you’ll be able to retire based on your savings. Life insurance can assist a surviving spouse in making ends meet and keeping the family income stable. Think also about your health, potential medical expenses, and life expectancy your relatives have enjoyed when considering the term of your life insurance policy.

What type of life insurance do you need?

There are two basic types of life insurance—term and permanent life insurance. Several different kinds of policies fall under each category, and the one that’s best for you will depend on your circumstances.

The lower rates of term life insurance make it a popular choice to cover a specific period, but it’s not a one-size-fits-all solution. Guaranteed term policies have set benefits and premiums, while policies that renew yearly have the disadvantage of escalating premiums as you age. Decreasing term coverage also offers fixed premiums, but death benefits decrease annually.

Permanent life insurance, referred to as whole life insurance, can be more expensive than term insurance but provides the comfort of lasting coverage and investment options. Some policies are universal or variable depending on the investment strategy, but the best whole life insurance policy for you will depend on your situation.

What Will Life Insurance Cost?

Older adults often assume they’re ineligible for life insurance or that policy premiums will be unaffordable. Taking out life insurance in the prime of your life reduces premiums significantly, but you can still get reasonable rates as you age depending on the type of insurance. Quotes vary widely by company but expect to pay from $1,000 to upwards of $4,000 annually for coverage depending on your age and gender. Some companies are more tolerant of individual risk factors than others, so it pays to shop around. Be forewarned that there are policy cutoffs based on age and it may be difficult to secure any kind of life insurance coverage after 80.

Next Steps to Securing a Life Insurance Coverage

Once you’ve identified the kind of life insurance coverage you want, it’s time to find a provider to deliver it. If you’re over 50, companies may ask you to jump through additional hoops to secure a policy. Medical testing is often part of the application process, and you may be required to disclose medications you’re taking. There are a few life insurance policies out there that don’t require an exam, but the premiums are much higher. Unless you have a serious illness, enduring the inconvenience of an exam in exchange for cheaper premiums is usually worth it.

Before signing on the dotted line, you should also carefully vet the insurance company. Review ratings from a third party like S&P Global to verify the company’s in good standing and can be trusted to pay out on your policy. Because life insurance coverage for older adults can be more complicated, get help understanding the terms before you commit—speaking with independent insurance agents can help you better understand your options. As a retiree with a limited budget, your priority should be investing in insurance that will support the people you love.