Seniors are one of the most valuable parts of the community. They are also the most fragile and near-the-end-of life citizens. Many of the death benefits that seniors have (e.g. social security, pensions) will pay only so much, usually leaving spouses or children to pick up the balance. This is why insurance for senior citizens is critical. Plus, a life payout cannot be seized from debtors or have taxes levied on inheritances in most states.
What a senior life insurance policy requires and how it benefits you
Many insurers make seniors take a health exam; some do not, though. A senior citizen is, generally, far more likely to forego a health exam with a whole life policy than other types of coverage. A whole life policy usually requires a larger upfront payment, but protects a senior up to about 120 years old (dependent on the insurer).
A senior’s life insurance policy will provide peace of mind when considering things like outstanding debts and funeral costs. This way, the surviving family will not be burdened with these and other potential costs. These “other” costs may include: estate taxes, back-taxes, and so forth.
Senior Life Insurance
The type of insurance just for senior citizens is senior life insurance. Not all insurance companies offer this, so it is generally advised to find one that does. These policies are tailored specifically to the needs of those 50 years of age or over, and are available in whole and term life varieties. Additionally, many insurers have what is known as final expense insurance; this is commonly attached to a whole or term life policy and provides extra benefits such as burial costs.
The most affordable rates and the highest benefit amounts will generally be reserved for those senior citizens who are willing to take a medical exam-as well as score highly on it. Nonetheless, there are plenty of insurers who require no health exam: only a few health questions. Furthermore, many will not even ask health questions-but the coverage will almost always be lower and the premiums higher.
Guaranteed life insurance for seniors
The guaranteed acceptance life insurance is a type of coverage that generally does not require a health exam and is a variety of permanent (whole or universal) life insurance. If the insured dies within the first two years from an accident, the full benefit will be disbursed. However, if he or she dies from natural causes within the first two years since the policy’s inception, a limited benefit (typically the sum of the premiums paid-to-date and the interest accrued on a cash value) will be disbursed. If the insured lives past the two-year mark, then he/she becomes fully insured against both accidental and natural death.
Insurance for seniors on a fixed income
Term life is popular among seniors who live on a fixed income and who cannot necessarily afford a higher-priced permanent life insurance policy. Additionally, seniors who opt for term life are usually willing to forego the cash value investment option that whole and universal life offers, because they may not need it at their stage in life.
Permanent life insurance for seniors
For seniors who worry about outliving a term life policy, a whole life policy should be considered. Once the premiums are paid-up, it cannot be canceled and will be in effect until death. Plus, the amount of the premium cannot go up and a cash value (with a pre-determined interest rate) is standard.