As a senior citizen, thoughts about getting life insurance cross your mind frequently. Even if you have a current plan, it might be time to increase your coverage. While you might think the change is going to be an expensive one, it doesn’t have to be.
There are numerous insurance options available for seniors on the market that offer extensive coverage. Thus, you can easily find a policy that will benefit you without severely hurting your financial situation.
Getting To Know Different Plans For Seniors
If you are a senior citizen, chances are you want to sign up for something that offers fewer surprises. At this age, all you are looking for is consistency which is why there are many plans that offer stability.
There are 4 major types of insurance: Term, Universal, Whole, and Final Expense. All of these cater to seniors with different needs and requirements.
5 Benefits Of Choosing A Guaranteed Acceptance Plan
A guaranteed acceptance life insurance plan is a type of Whole Life Insurance and is one of the best for seniors. The full term of the plan is usually up to 20 years.
Also, some providers might have a waiting period of 2 years. In case you pass away in the first 2 years, your heirs will be eligible to receive the amount you paid in premiums.
The Guaranteed Acceptance Plan is popular because of a number of reasons including:
#1. Free Of Medical Exams
It is common for senior citizens to suffer from various health conditions. This is why policies that require medical exams are not very popular amongst this age bracket.
A guaranteed acceptance life insurance policy is free of any such requirements. You do not have to go through an extensive medical exam and are eligible for the plan regardless of your health condition. However, there might be a limited period for benefit provision.
#2. Payment Plan
There are no changes in the amount of premium you must pay for your guaranteed acceptance life insurance plan. The fixed premium gives seniors peace of mind and a chance to make decisions about their financial situation.
Some providers also offer flexibility when it comes to paying the premium. You may choose to pay it monthly or even annually.
#3. Ease And Convenience
Due to the absence of any stringent requirements, seniors can easily apply for such an insurance policy. You do not have to go through lengthy processes in order to get qualified for the plan.
This is something that is highly appreciated by seniors and is the reason for Guaranteed Acceptance being one of the best plans on the market. It is helpful for seniors over 85 as they don’t have the option to get any policy with a medical exam.
You can become eligible for such type of insurance plan within days and do not have to wait for weeks. There are also numerous providers offering this particular kind of coverage plan. Hence, finding a reliable provider should not be difficult.
#4. Guaranteed Benefits
You no longer need to worry about a decrease in the number of benefits with age. With this plan, your benefits remain the same even in case your health deteriorates.
Therefore, with such coverage, you can be confident of leaving your family with financial support that they can use to pay off any final expenses.
Also, since the rate is locked as and when you apply for such a plan, there is zero unpredictability with such type of insurance. All of these factors make guaranteed plans extremely popular amongst seniors.
#5. More Options
In case you want to add more to your insurance, you can opt for riders with a guaranteed acceptance plan. The death benefit or the payout can be chosen for as high as possible (up to 10 million).
However, the higher the payout is, the higher the payments would be. The age option is another flexibility that such a plan allows. You can avoid the risk of policy outliving by setting an age of up to 120 years as well.
In the majority of states, people falling in the 50-85 age bracket, are eligible for a Guaranteed Acceptance plan.
However, you will need to undergo certain simple tests, such as blood and urine tests.
The numerous benefits of a guaranteed acceptance policy are what make it worth considering. Such coverage option provides the flexibility that seniors require along with a consistent payout schedule.
The fact that the benefit provision standard does not change regardless of the changes in your health is what makes it perfect for seniors.
Nevertheless, there are certain individuals that question whether they need a plan or not.
Do I Need A Life Insurance Plan?
If you are still wondering whether or not you should opt for life insurance, this section will help you make up your mind.
There is a reason why insurance providers have specific plans for senior citizens. You might think that a coverage option at this stage would be unnecessary, but the following factors may make you think otherwise.
#1. Taking Care Of Your Debt
In case you haven’t been able to pay off your debt, a life insurance plan can help. Options such as guaranteed issue plan help your family members take care of your responsibilities even after you are gone.
Nobody wants to leave their loved ones with a pile of debt to take care of once they’re gone. Hence, in order to keep your mind at ease, you should opt for a predictable life insurance plan.
#2. Paying For Your Final Expense
There is no doubt that your loved ones will be facing a stressful time ahead of your demise. To make things easier for them after you’re gone, you can choose a plan. This will give your family members a chance to grieve your loss.
You can thus think of such a coverage option as a way to take care of them even after you are not there anymore. You can also be confident about your final rights being fulfilled the right way. Your heirs will have no problem paying for your final expenses.
#3. Looking After Your Loved Ones
If you have a spouse or a child dependent on you financially, you can ensure their well-being through life insurance. Since a guaranteed acceptance plan ensures a continuous flow of payments, it can be used to replace running income.
If you are still supporting one or more family members, you can make sure that they are looked after even after your demise.
How To Choose The Right Insurer
Now that you know why getting life insurance is important, it is time to understand where to look. There are many insurance providers that will promise you the best rates. However, knowing your needs before insurance shopping is a must.
This is because you do not want to pay premiums for an amount that is greater than what your family would require. Remember to keep in consideration your family’s expenses and then choose the right policy size.
Some of the factors that you will need to consider at this point would be the number of people dependent on you financially as well as your debts. If you do not have a mortgage to worry about or have your other debts settled, you only have to look at the expenses.
Since a guaranteed plan takes up more risk, most providers offer a modest death benefit. While there is an option to increase the death benefit, you might have to pay a fairly high premium.
If you are still earning and have income coming in, you might want a policy size that is similar to that amount.
However, some individuals like to take care of their loved ones in such a way that it protects their future as well. If you wish to pay for your child’s college or want to give your spouse financial support for a longer period of time, you might need to pay a higher premium.
At times, it proves to be extremely helpful to seek help from an insurance agent, e.g. Seniors Life Insurance Finder. Such a professional can help you estimate the right benefit amount for your family.
This individual will also help you go through all the available options you have and then suggest the best according to your needs. Also, remember that all the providers do not offer the same rates.
Lastly. we recommend checking Mutual of Omaha and MassMutual Guaranteed Acceptance.
Bottom Line
Choosing a life insurance provider is an important decision. You will need to shop around when looking for the right one since the maximum coverage varies from one provider to the other.
It is also helpful to get information about the riders that you can opt for along with the guaranteed issue plan. Such additions can help you customize the coverage and ensure the financial safety and protection of your loved ones after your demise.
