Are All Senior Life Policies Permanent?
Have you ever gone to the grocery store to purchase something only to find there are seven different brands of the exact same thing and each product has a different price? How are you supposed to know which one to buy? Is the more expensive product better? There has to be a difference, right? This is a scenario that many seniors find themselves in when searching for a senior life insurance policy.
We often are asked, “Are all senior life insurance policies permanent?” To better understand the answer to this question, let’s look at the two main types of senior life insurance coverage.
The first type of coverage is term life insurance for seniors. This type of coverage is not permanent as it covers the insured for a specific period of time. For instance, a 20 year term life insurance policy will cover the insured for a period of 20 years. During the term of the policy, the insured will make monthly payments. If the insured passes away during the term, the death benefit will be paid out to the beneficiary. At the end of the 20 year term, the policy terminates. There are no more monthly payments, and there is no longer a death benefit.
A term life insurance policy is usually less expensive because it does not cover the insured for life. This type of policy is often purchased by those who have a set goal in mind. For instance, a person may have a mortgage with 10 years remaining before the balance is paid. The policy is purchased to ensure that the balance of the mortgage will be paid if the insured passes away.
Another person may have 20 years before retirement and wants to protect their family during that period of time. This person may purchase a 20 year term life insurance policy to replace the future lost income should they pass away before retirement.
The second type of senior life insurance coverage is whole life insurance, which is designed to cover the insured for the rest of their life. One of the more popular uses for this type of policy is to cover burial cost or final expenses.
Seniors can purchase simplified issue whole life insurance, which is often referred to as burial insurance. The person wants to ensure that family or friends left behind are not responsible for covering the final expenses. These policies are smaller in value, usually ranging from $3,000 to $50,000 depending on the insured’s needs. These policies are easier to obtain, require minimal health history, and often can be approved the same day the application is submitted
Senior life insurance plans offer a wide range of coverage and can be tailored to meet the insured’s specific needs.
If you have any questions about plans or need help deciding which type of plan is right for you, feel free to call us directly. We specialize in senior insurance policies and would be glad to answer any questions or concerns that you may have.