How Do I Choose Between a Prepaid Plan and a Postpaid Plan?
Above, we laid out our best picks for prepaid cell phone plans for seniors, but those aren’t your only options. Did you know there’s also such a thing as a postpaid phone plan? Well, there is! We’ll sort out the differences for you to make the choice between the two a cinch.
What’s a Postpaid Plan?
With postpaid plans, you pay for your service at the end of the month. The main networks (AT&T, Verizon, and T-Mobile) all offer postpaid plans. Most postpaid plans include unlimited text and talk. How much you pay at the end of the month depends entirely on your data usage; if you use a lot of data, you’ll have a larger phone bill.
Are Postpaid or Prepaid Phone Plans Better for Seniors?
The answer to this question really depends on the user. Most seniors, especially the 56 percent who have cell phones and landlines2, don’t need unlimited talk and text. With prepaid plans, you only pay for what you use. What a great way to cut costs! However, many of the major carriers offer senior discounts for their postpaid plans, so it’s best to consider both options and pricing models before making a final decision.
Important Questions to Ask as You Decide Between Prepaid and Postpaid Plans
Let us help you figure out what plan makes sense for you. Ask yourself the questions below to see which type of plan fits your situation.
How Much Data Do You Think You’ll Use?
Data makes up the bulk of a cell phone plan’s costs these days. Most postpaid plans include large amounts of data or even unlimited data. Prepaid plans let you pay for as few as 25 MB of data a month. If you’re not sure how much data you’ll use, ask your family how much they use. Odds are, you’ll use less than they do.
Also, consider what you like to do online. If you just want to send a few emails and check Facebook, you won’t need a ton of data. If you’re going to stream videos or music, use GPS navigation, or be on the internet every day, you’ll probably want at least a few gigs.
Will You Be Getting a Single Phone or a Family Plan?
Some prepaid and postpaid plans offer discounts if they’re used as family plans. Ask your family what phone plan they have. Adding your phone to their plan — whichever kind it is — might be your most affordable option. If you want your own plan, prepaid plans may be better, as they give the lowest rates to single users.
Pro Tip: Still having trouble deciding what type of phone or plan you want? Visit our cell phone buyer’s guide for more important topics to consider!
Do You Travel a Lot?
If you travel a lot internationally, even just to Canada and Mexico, postpaid plans are great. Many providers offer free international texting and calling.
Do You Want ‘Free’ Entertainment Included?
Some postpaid wireless plans include “free” entertainment like Netflix, Hulu, or Disney Plus. If that interests you, and the numbers make sense, consider going with a postpaid plan.
Do You Need a New Phone?
If you need a new phone, what kind do you want? Do you want a senior-friendly phone or one of the latest smartphones?
Postpaid plan carriers let you pay for a new smartphone in monthly installments. Each month, you pay for a portion of the phone plus the monthly service fee. Prepaid phone plans don’t let you do that — or, if they do, you usually owe interest.
Paying for a new phone upfront is also an option. Some of our favorite prepaid phone carriers sell our favorite cell phones for seniors! And they’re affordable too — like the Jitterbug Smart3 for $149.99.
