If you were told obtaining a quality and affordable life insurance policy as a senior wasn’t possible, you’ll be glad to know there are excellent policies available. This is true even if you have been denied coverage in the past or currently have pre-existing health problems. In most cases, it’s easy and convenient to get approved with no medical exams required. Coverage varies and there are options as to how you decide to pay your premium. Hassle free coverage to suit your needs and your budget can be set up in practically no time at all.
Life Insurance for Seniors Overview
The good news is that the average American life expectancy has increased over the last decade or two. Many life insurance companies have noticed this trend, and they have become much more willing to offer cheap life insurance for seniors citizens than ever before. In fact, baby boomers and senior citizens have provided insurers with a lot of business recently. However, rates will still typically be higher for older people than they are for younger people, so it is just as important to make certain that you purchase the right type and amount of coverage for your needs. 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
If you want to consider the purchase of life insurance for parents or yourself, think about the reason why you want to buy a policy. Do you just want to have a way to finance a funeral, or do you want to take advantage of life insurance as a way to transfer an estate and leave money to the next generation? The answer to this question will help you determine what type and amount of coverage that you require. Once you have decided why you want to buy life insurance for your parents or yourself, you can compare senior life insurance quotes. United Life Group, a leading senior life insurance broker, can do the shopping for you. The professional and experienced brokers here can also help you figure out which options will be best for you and your family.
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: 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: 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 a simple way to get life insurance for seniors because these plans accept applicants even if they are not perfectly healthy.
Term Life for Senior Citizens Term policies expire after a certain amount of time. Typically, they only provide coverage and do not grow any sort of cash value. However, a reasonably healthy individual from about 50 to 70 might find that they can buy a policy that lasts for 10 to 20 years, and it is the cheapest way to afford a greater amount of coverage. Typical term policies start at about $50,000, and you can purchase much higher amounts too. Typically, term policies will require health underwriting before they accept an application and offer a final price. This may consist of answering some questions on an application, or it might even consist of having a medical exam. People with health conditions might find it difficult to get accepted for term life, and they will surely pay a higher rate than perfectly healthy individuals. If you are interested in purchasing term life, you might want to consider policies that are renewable and convertible. This means that you can decide to convert your policy to whole life before it expires, or you can renew the term coverage for another period of time. This is a handy feature in case you do develop a medical issue in the next few years that would make getting other coverage difficult.
Whole Life for Older People The advantage of permanent policies is that they stay in force as long as the premiums get paid. You can even pay off some policies, so you can enjoy lifetime coverage without worrying about making more payments. Since whole life policies are permanent, and since they 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 policies for seniors:
- They provide lifetime coverage.
- They can help you build a valuable asset.
- These assets can be sold or borrowed against.
Obviously, the fact that whole life has a cash value is one advantage. The other advantage is that seniors can actually sell their policies to investors under certain conditions. Under other conditions, they can borrow against the cash value. This allows some older people take advantage of the value of their policy while they are still alive. You might consider whole life 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. These days, funerals can cost several thousand dollars, and this can put a burden on many middle class families. However, they are actually a type of whole life insurance that has been developed to make it easy for older people to apply and 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.
- They may be 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. The nice thing about these policies is that they provide a cash benefit. That means that part of the proceeds can be used to fund a burial, but the rest can be used in any way that the beneficiary chooses.
Simplified vs. Guaranteed Life Insurance for Seniors
Simplified issue policies are usually cheaper than guaranteed issue policies. They do ask a few health questions on the application, but most reasonably healthy seniors can still qualify. The questions are really designed to weed out people who are likely to have terminal health issues, and they are not meant to exclude older people with normal age related health issues. For example, people with high cholesterol or even controlled diabetes may still qualify for simplified issue policies. Typically, simplified issue policies also provide an immediate death benefit. This means that the full death benefit will be available to the beneficiary the moment the policy is active. Activation usually happens shortly after the first premium payment gets made. Guaranteed issue policies do not ask any health questions or require any type of medical exam. This means that these policies are available to almost anybody who applies. This also means that they cost a bit more, and they usually do not have an immediate death benefit. Instead of using health underwriting as a way to qualify applicants, insurers will impose a waiting period. Typically, this waiting period varies from two to three years. After this period is over, the full death benefit will be paid if the insured person dies. If the insured person passes away before the waiting period is up, the benefit may be graduated. This means that a certain percentage might be paid during the first year, a higher percentage the second year, and so on. For example, some guaranteed issue life insurance policies refund premiums or pay out a quarter of the death benefit if the insured person passes away within the first year. They might pay out half the death benefit if the insured person passes away during the second year. After the waiting period ends, they revert to paying out the entire face value of the policy like any other life insurance.
Should You Buy Simplified or Guaranteed Issue Life Insurance?
You may have seen a lot of advertisements for guaranteed issue policies for senior citizens on TV, but you might want to compare your choices before you make a decision. The right answer really depends upon the health of the person you want to insure. Compare simplified and guaranteed life insurance for your loved one:
- If she can answer the health questions the right way, a simplified issue policy will be cheaper and offer an immediate death benefit.
- If she has a serious medical condition, a guaranteed policy might still be a very good deal.
- An experienced senior life agent can explain different policies and help you make the best decision.
How Can You Find the Best Senior Life Insurance?
Life insurance can seem like a fairly complex topic to average consumers. Lots of people wait to purchase coverage because they think it is too hard to understand or too expensive. However an experienced senior life broker can listen to you explain your unique situation, shop the market for the best rates, and find you the right solution for your family. You should be pleasantly surprised by the modest price and ease of application for many senior life insurance products today. 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, and they 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.
What is Final Expense Insurance?
Also known as burial insurance, final expense insurance is designed to cover funeral expenses and other final expenses after one’s death. It has a few key differences from term life or whole life insurance, such as:
- Face values are generally smaller.
- Medical exams aren’t required.
- In some cases, a few health-related questions are asked. However, these companies generally aren’t worried about mild to moderate health-related issues. Instead, they focus more attention on things like heart attacks and strokes.
- With some policies, you are guaranteed coverage, no matter what your medical history might be like.
- Burial insurance is often available to older senior citizens. This is positive news because a lot of term life and whole life insurance policies stop offering coverage at age 70 or 75.
- Final expense insurance is a great option for many senior citizens because the premiums are generally a lot lower.
- The overall application process is often much simpler than with other types of life insurance.
Just as with other life insurance policies, final expense insurance payouts are paid directly to the beneficiary in a lump sum. This means that you don’t have to worry about whether or not final expenses will be taken care of. The beneficiary can choose what needs to be paid and can take care of it with the insurance proceeds. You can look for a final expense insurance quote online, so getting started is easy.
Different Types of Final Expense Insurance
Although all final expense insurance policies do have a few things in common, there are three main types of coverage that are available. Understanding these three types will help you make the right decision. For example, if you or your parents have some medical-related issues, a modified or graded benefit option might be offered. If you or your parents are in really good health, however, you may want to insist on finding insurance with level coverage. By looking for a final expense insurance quote, you can get an idea of what is out there and what might be available for you or your parents.
With this type of final expense insurance, you don’t have to worry about being covered; your coverage will take effect right away, and the full face value will be paid when you pass away, regardless of how soon it might occur after coverage has been purchased. This type of final expense insurance is generally reserved for those who are in good health.
Graded policies are a solid option for those who aren’t in the best of health but who want as much coverage as possible. With graded coverage, there is a 24-month waiting period before the full death benefit will be paid, but the beneficiary will be paid a percentage of the benefit. For example, some policies involve a 25-percent payout during the first year and a 75-percent payout during the second year. Once the two-year waiting period has ended, however, the full death benefit will be paid upon the insured’s death.
With a modified policy, you are subject to a waiting period that generally lasts for two years. If something happens during this time period, the beneficiary will be repaid the amount of the premiums paid along with a small percentage. For example, some companies offer the full amount of premiums paid plus 10 percent in the first year or 20 percent during the second year. With these policies, the full death benefit is paid after the two-year period has passed.
The Best Final Expense Insurance Companies to Look Into
There are lots of different final expense insurance providers for you to look into, but these are some of the best. Since they offer policies to seniors between the ages of 50 and 85, they could be a great choice for you or your parents. All three of these companies provide top plans, have affordable rates and come highly recommended, but seeking quotes from each will help you find the one that is right for you.
American Continental Life Insurance Company (Aetna)
- AM Best Rating: A
- Coverage is available for people who are between the ages of 45 and 89. This makes Aetna a great option for older senior citizens.
- No RX history check is required.
- Those who qualify can get full coverage right away without worrying about a waiting period.
- Unlike other final expense options, this coverage can build up a cash value.
- Rates are fixed for life.
American Memorial Life Insurance Company
- AM Best Rating: A
- Policies are issued to individuals between 18 and 85. This makes American Memorial Life Insurance Company a great option for younger adults and senior citizens alike.
- Competitive rates are available for senior citizens who are between the ages of 75 and 85 and who are looking for cheap coverage.
- The application can be submitted over the phone.
- Those who qualify don’t have to worry about a waiting period.
- Rates are fixed for life.
Assurity Life Insurance Company
- AM Best Rating: A-
- Assurity is known for having very competitive rates.
- Coverage is available for those between the ages of 18 and 80.
- Level death benefits are available with face amounts between $5,000 and $50,000.
- Graded death benefits are available for individuals between the ages of 40 and 80 and who are seeking a policy with a face amount between $5,000 and $50,000.
- There is no waiting period for individuals who qualify.
- Rates are fixed for life.
Tips for Finding the Best Final Expense Insurance
Buying life insurance is easier than you probably think, but you shouldn’t make a rushed decision. Otherwise, you could end up with the wrong type of coverage, the wrong life insurance company or with a rate that is higher than it should be. By taking your time and carefully shopping for the right coverage, however, you can help ensure that you are covered when you need it the most and that you don’t have to spend too much on your final expense insurance. Here are a few things to keep in mind when shopping for coverage for yourself or your parents:
- Although many people want to secure coverage for their parents without having to bother them with the details, your parents will need to be involved in the process. Luckily, you can do a lot of the legwork yourself and have them participate in the final paperwork.
- Shopping online is a great way to find cheap quotes from various final expense insurance companies. You can do so from the comfort of your home and take your time in learning more about various policies and rates that are available.
- It’s best to opt for level coverage if you can, so look for one of these policies if you or your parents are in good health. Otherwise, it is best to opt for a graded or modified option if it is available to you; then, you will have at least some coverage before the 24-month waiting period has ended.
- Make sure that you work with a top-rated company; these companies are known for being reliable and also often charge more competitive rates.
- Consider the right face value for your coverage. A higher face value can help cover more final expenses, but it will also be more costly for coverage.