Have you been told that getting a high quality and a reasonably priced senior life insurance plan wasn’t feasible? You’ll be pleased to find out that there are in fact outstanding insurance policies available. Even if you have been refused insurance coverage in the past or presently have pre-existing health issues, you can still find an affordable policy.
Available Life Insurance for Seniors
The great news is that the typical American’s life span has increased in the last few decades. Insurance companies have recognized this pattern and have come to be more willing to offer reasonably priced life insurance for seniors. Although there are now a lot more insurance options for seniors to consider, competition in the marketplace makes finding and purchasing coverage more important than ever before.
Take the time you need to comprehend the different kinds of policies that seniors can purchase, so you can easily make the best choices for yourself and your family.
Find the Best Life Insurance Quotes
Consider your reason for needing an insurance policy. Do you want to pay for a funeral or do you need life insurance to transfer an estate and leave behind money for the next generation? These reasons will help you figure out what kind and amount of insurance coverage that you will need.
Once you have made the decision for buying life insurance for yourself or your parents, you can get started comparing senior life insurance products.
The Best Types of Life Insurance for Seniors
There are three kinds of life insurance policies that the majority of senior citizens should consider, and these are:
- Term life for seniors: Term insurance will probably provide a way to get inexpensive life insurance for seniors, but term insurance policies do expire after an established period of time.
- Whole life for seniors: This type of coverage costs a lot more than term, but the policies do not end on a specific date, and they will develop cash value and earn interest.
- Burial Insurance: Burial insurance policies will provide a convenient way to get affordable life insurance for seniors because these plans will accept applicants even if they are not completely healthy.
Term Life Insurance
Term Life insurance policies expire after a specific amount of time and generally only provide you with insurance coverage without accumulating any amount of cash value. Then again, a reasonably healthy person between the ages of 50 to 70 may find that they can purchase a policy that will last for 10 to 20 years. This term life insurance policy would then be the most affordable way to pay the best possible coverage.
If you are considering buying term life insurance as a senior, you may want to think about policies that are renewable and convertible. This enables you to convert your insurance policy to whole life insurance before it expires, or you can consider renewing the term coverage for another period of time but at a higher rate because of your new age.
Whole Life Insurance for Seniors
The greatest advantage of permanent insurance policies is that they stay in force for as long as the premiums are paid. Because whole life policies are permanent and will grow a cash value, they cost much more than term insurance policies. Then again, they typically have more living benefits that term policies do not have. Some of the advantages of whole life insurance plans for seniors are:
- Whole life provides coverage for a lifetime
- The insurance policy builds cash value and becomes an asset
- The cash value can be accessed through policy loans or surrender.
If you need guaranteed life insurance for seniors, you may possibly be able to find smaller policies that do not need any health underwriting. If you want a higher death benefit, you are likely still going to have to answer some health questions on your application or take an insurance medical exam.
Burial Insurance for Seniors
These types of policies are called burial policies simply because they are typically purchased to make sure that an older person’s family has adequate money to cover a funeral and burial. An average funeral and burial typically cost about $10,000, burdening most families with painful expenses. Fortunately, this insurance was solely designed to help seniors get quality life insurance.
Typically, these policies have a rather small death benefit compared to traditional insurance which usually ranges range from about $5,000 to $20,000. There may be a simplified issue or guaranteed issue policy which means there are few health questions. Burial policies generally accept applicants between 50 and 80, but some insurers will accept applicants up to age 85.
The low death benefit is meant to provide just enough money to pay for a funeral and burial, pay off some debts, and take care of other expenses that usually tend to crop up when a loved one passes away. A positive aspect of final expense insurance policies is that they provide you with a cash benefit, meaning that part of the death benefit can be used to pay for a burial while the rest can be utilized in any way the beneficiary may choose.
How to Find the Best Senior Life Insurance Plans
Senior life insurance can appear to be a pretty complicated topic for average consumers leading most people to delay making a decision and then leaving them open to risk.
However, an experienced senior life insurance professional, like The Lunsford Agency, can answer your questions, talk about your unique situation, shop the market for the best rates, and find you the ideal solution for you and your family.