So, You’re In The Market For Senior Life Insurance
Have you ever been told that obtaining a quality and affordable senior life insurance policy wasn’t possible? You’ll be glad to know that there are in fact excellent policies available. Even if you have been denied coverage in the past or currently have pre-existing health problems, you can still find a plan.
Life Insurance for Seniors Overview
The good news is that the average American life expectancy has increased in the last few decades. Insurance companies have noticed this trend and have become more willing to offer affordable life insurance for seniors citizens. While there are now more insurance options, rates continue to be higher for seniors, making it just as important to determine ideal coverage.
Take the time to understand different types of policies that seniors can buy, so you can make the best choice for yourself and your family.
Find the Best Senior Life Insurance Quotes
Think about your reason for wanting an insurance policy. Do you want to finance a funeral or do you want life insurance to transfer an estate and leave money to the next generation? These answers will help you determine what type and amount of coverage that you require.
Once you have decided your reason for buying life insurance for yourself or your parents, you can begin comparing senior life insurance plans.
Basic Kinds of Life Insurance for Seniors
There are three types of life insurance policies that most senior citizens consider, and these are:
- Term life insurance for seniors: This might provide a way to get cheap life insurance for seniors, but term policies do expire after a set period of time.
- Whole life insurance for seniors: This option costs more than term, but the policies do not expire on a specific date, and they can grow a cash value.
- Burial policies: Burial policies can provide an easy way to get life insurance for seniors because these plans accept applicants even if they are not perfectly healthy.
Term Life Insurance for Senior Citizens
Term policies expire after a certain amount of time and typically only provide coverage without growing any sort of cash value. However, a reasonably healthy individual between the ages of 50 to 70 might find that they can buy a policy that lasts for 10 to 20 years. This term life insurance plan would then be the cheapest way to afford the best possible coverage.
Most term policies start at about $50,000 and require health underwriting before an applicant is accepted. An applicant would likely need to answer a medical history questions or undergo a health exam. This makes it more difficult for seniors with health conditions to get accepted for term life insurance. In the case they are accepted, they will likely pay a higher rate than perfectly healthy individuals.
If you are interested in purchasing term life insurance as a senior, you might want to consider policies that are renewable and convertible. This allows you convert your policy to whole life insurance before it expires, or you can renew the term coverage for another period of time.
Whole Life Insurance for Seniors
The advantage of permanent policies is that they remain active as long as premiums get paid. Since whole life policies are permanent and can grow a cash value, they cost more than term policies. However, they may also have some benefits that term policies cannot provide. Some advantages of whole life insurance plans for seniors:
- They provide lifetime coverage.
- They can help you build a valuable asset.
- These assets can be sold or borrowed against.
One major advantage of the whole life insurance is that seniors can actually sell their policies to investors under certain conditions. This means that they can borrow against the cash value, allowing them to take advantage of the value of their policy while they are still alive. You might preference whole life insurance if the advantages of having permanent life insurance with a higher value is more important than the price of the premium.
If you want guaranteed life insurance for seniors, you might be able to find smaller policies that do not require any health underwriting. If you want a larger death benefit, you are probably still going to need to answer health questions on your application or take a medical exam.
Burial Insurance for Seniors
These are called burial policies because they are usually purchased to make certain that an older person’s family has enough money to pay for a funeral. Funerals can cost several thousand dollars, burdening many families with costly expenses. Luckily, this insurance was solely developed to help seniors get covered. These are some things to know about burial policies:
- Typically, the policies have a fairly small face value, and this might range from about $5,000 to $20,000.
- There may be a simplified issue or guaranteed issue policies.
- Burial policies usually accept applicants between 50 to 80, but some policies accept applicants up to age 85.
The small face value is meant to provide enough money to pay for a funeral, pay off debts, and handle other expenses that tend to crop up when a loved one passes away. An advantage of these policies is that they provide a cash benefit, meaning that part of the proceeds can be used to fund a burial while the rest can be used in any way that the beneficiary chooses.
How Can You Find the Best Senior Life Insurance Plans?
Senior life insurance can seem like a fairly complex topic to average consumers leading many people to procrastinate on making a decision and leaving them open to risk.
However, an experienced senior life insurance broker, like United Life Group, can answer your questions, explain your unique situation, shop the market for the best rates, and find you the right solution for your family.
The brokers at United Life Group want to help you make the right choice if you are planning to purchase a policy for yourself or an elderly family member. Our advisors will be happy to supply free life insurance quotes for seniors. Because these independent agents work for their clients, and not for one insurance company, they work hard to make sure that they find the right coverage at the best possible price.