So, You’re In The Market For Senior Life Insurance
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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.
What is The Available Life Insurance for Seniors?
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.
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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 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.
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.
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 final expense insurance 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. Contact us today.