Senior Life Insurance – Free Quotes, Compare & Planning
Senior Life Insurance is one of the essential financial plans that you must have. We need money throughout our lives, even after death! As you are a responsible person in your family, you should care about others.
Seniors have a misconception that as they are too old and they cannot find any affordable policy. There is actually no official age limit for life insurance but seniors pay a bit higher premium because of their age.
We can HELP!
You can find affordable life insurance for seniors and obviously within your budget and limit.
Available Senior Life Insurance Plans
Life insurance policy is to protect the family from any financial disaster if any unexpected happens to the policyholder.
Some people also like to use it as an investment. However, seniors look for a policy that can cover very basic expenses (like debt, mortgage, and funeral expenses).
Hence, the coverage amount for seniors is smaller than others, which is a very positive point to get an affordable one.
There are few options available for seniors and here is a short brief of the policies.
Whole Life Insurance
It is the most popular type of policy among seniors. The policy covers the rest of the life of the policyholder. The monthly premium of this plan is fixed, it never changes.
As this is a long-term policy, the premiums are high in most of the cases. The beneficiaries receive the benefit only after passing away from the policyholder. This policy is a great choice for seniors over 80 years who want small coverage. However, it requires a medical exam after an applicant aged over 50.
Besides the death benefit, you can borrow money from the cash value of the policy but you have to pay that back otherwise it will be deducted from the benefit. This policy also helps to minimize estate taxes.
However, all type of whole life plans may not accumulate cash value. For example, if you choose guaranteed issue life insurance at age 40, you will not get the cash value benefit.
Burial or Final Expense Insurance
Burial insurance is quite similar to whole life insurance. Actually, it is whole life insurance with a small death benefit with a different marketing term.
This policy generally covers $5,000 to $50,000 which is meant to cover the funeral costs and any other debts. This policy hardly requires any medical tests as the coverage amount is very small.
Very basic medical questions are asked before giving this plan. We recommend this policy to seniors over 85 as they don’t need big coverage and other types of plans are not available.
Term Life Insurance
Term life insurance offers the most coverage within a short time period if you are in good health. This policy comes in some specific time period, generally from 5 to 30 years.
Hence, if someone buys a 15 years’ policy with a death benefit of $200,000, he or she will have to pay a fixed amount of premium every month throughout the 15 years.
The premium will never change for 15 years, doesn’t matter what happens to the world economy. However, if the policyholder dies within these 15 years, the beneficiaries will get the full death benefit of $200,000.
The policyholder can also get the original amount back with a fixed interest rate after 15 years, and obviously, the amount is not a small one!
Guaranteed Universal Life Insurance
Guaranteed universal life insurance is extremely popular among the seniors who are looking for long-term coverage with an affordable price.
It is neither whole life insurance nor a term life insurance. It is a different policy with some features of term and whole life insurance.
Let’s make it clear.
The policy lasts for a lifetime but it doesn’t create cash value which keeps the premium lower but doesn’t leave you uncovered in your older age.
The premium is fixed in this policy like term insurance but it doesn’t have a specific period of 5 – 30 years. Instead of that, it set to a specific age like 90, 95, 100 or even 120).
However, the cost will likely to be high if you choose an older age. It is normal as you are covered for more years and to adjust the coverage amount, the premium will be higher.
Health and Age Can Affect Your Premium
Health, age, and life insurance premium are very closely related. It is one of the most important components that an underwriter considers before issuing a policy.
The healthier you are the lower premium you pay. With age, senior’s health condition drops and this is a big enemy for any life policy. Most of the insurance companies require a medical exam for a policy.
However, seniors can buy guaranteed acceptance life insurance; that’s expensive!
It is always a good decision to go for a medical test, doesn’t matter how your health is unless you have any deadly disease.
As previously discussed, a term policy can be up to 30 years. But, people aged 50 to 55 years at maximum can get this policy. With age, options decreases. Seniors over 70 years can only buy 10 to 15 years term insurance.
Nevertheless, you can get life insurance at any age but the cost varies. Many companies offer life insurance for seniors over 90, but your age and health condition matters a lot.
Why Do You Need Senior Life Insurance?
There are several reasons why seniors need a life insurance policy. Here we are going to discuss a few of them.
Paying Your Debts
Life insurance can be useful to pay any outstanding debts. Do you know which one is the biggest debt problem nowadays among seniors?
Believe it or not, 22% of seniors over 65 have mortgage debt and it is increasing every year. With the benefits of your life insurance, it will become easy to pay off the mortgage.
There might be other debts as well, like, bank loan, medical expenses, etc. No worries, your life plan can cover all these debts.
This is an unavoidable cost that most of the seniors are afraid of. The cost of funeral expense is increasing every year and we don’t know what is going to happen in the next few years.
It is wise to be prepared to pay these expenses. Moreover, if you have a pre-set budget for the funeral program, it will be possible for you to organize your own funeral. You can ask the beneficiary to arrange the program as you wanted.
If you have a disabled child, you must think about life insurance. The medical costs and support your child need must be a solid reason to have a policy with decent coverage.
A life plan can cover the living costs and other expenses your child need in your absence.
Raising Your Grandchildren
It is now very common that elderly people are parenting their grandchildren in many cases. This is because either their parents are not alive or not live together.
Many seniors struggle to finance the living, housing and education expenses of grandchildren.
If you have your grandchild with you, it is essential to have a life plan. You may not have included your grandchild in your retirement planning but now you have to think about it.
You can’t plan your retirement again, but, you have to the opportunity to buy life insurance for the elderly.
Do you want to be remembered after passing away? Doing a charity can make you unforgettable.
You can make any of the charity organization as your beneficiary so that the death benefits are directly given to the charity.
It is a Nobel work and many seniors want to do something for society. Your insurance policy can make it true.
Do you have a large estate and worried about the tax? The more wealth you have the more tax liability you have.
You can transfer your wealth to life insurance and can leave money for your family without any worries of tax. However, this works only if you have a large estate and expensive items.
Life insurance works as a good investment. You may find mutual bonds and other investment opportunities lucrative but they are not always safe. Who knows what will happen to that company after your passing away.
You can invest your money in a life insurance policy without any worries. The interest rates are quite good and you can build a good amount of money for the next generation. Your beneficiaries will get the money without any hassle after your death.
First of all, thanks for staying with us.
Hope, you have already noticed our company name. “Seniors Life Insurance Finder” is dedicated only for the senior citizens and specialized in senior life plans and no matter how worst the situation is; we are here to HELP you.
We work with the top-rated insurers and with our FREE comparison tool you can find the best deal.
Last Few Words
Each of the life insurance company offers separate rates for each client. Hence, there is no accurate company that will be suitable for you. All you can do is, compare rates from top providers and find out which one satisfies your needs.
The best life insurance coverage has never been so easier to find.
Get your free quote from Seniors Life Insurance Finder now, click here!