Life Insurance for Seniors
Although some seniors my feel that they cannot get life insurance because of their age this is far from the truth. Insurance companies offer quite a variety of plans for senior life insurance.
As people get older they begin to think about life insurance. Thoughts of our mortality lead to concern that a spouse or family members may not have enough assets and income to live comfortably after I am gone.
We also want to make sure that burial expenses will not be a financial hardship for our spouse.
So many people age 65 and up start searching for additional life insurance. Because the market is so large, insurance companies have developed quite a few different options to consider.
The first question to ask is how long do I need the life insurance? If you want the protection for a short time then consider term insurance. It is usually less expensive up front than whole life or universal life. But term insurance premiums increase after the level term period (five, ten, or twenty years) and it can be quite expensive to maintain at the older ages.
If you want life insurance to remain in force until your death even if you live a long time then take a look at whole life or universal life.
Whole life policies guarantee a level premium until the policy matures which is age 120 for most policies now. If you pay the scheduled premiums and don’t withdraw cash values you can count on the life insurance protection whenever you need it. And you won’t face any premium increases.
Many universal life policies now guarantee the death benefit to age 120 and will guarantee not to increase the premium if you pay specified premiums as scheduled. The premium for guaranteed universal life is usually less than whole life. But these policies do not build cash values. So if you want the death benefit and don’t care about cash value buildup, look carefully at universal life.
Not all universal life policies are guaranteed to age 120. Ask your insurance advisor to explain how the guarantee works to be certain you are protected before you purchase universal life.
How do I find senior life insurance or elderly life insurance?
Of course you can work with a local agent. There are many online life insurance marketers who will search several companies to find a good match for your needs. Some examples are:
Will I need to take an insurance physical or exam?
It depends. Life insurance for seniors comes in many packages.
You can choose fully underwritten products that do require a life insurance exam. If you are healthy and don’t mind taking the exam you may get the best rates going this route.
You can also buy no exam life insurance. These products ask you to answer health questions but do not require a physical or exam.
A third option is simplified issue life insurance. You will be asked only a few basic health questions and will not take any exam.
Finally you can buy guaranteed issue life insurance. No questions. Issued to most everyone. You will find these policies are graded death benefit; in the first two or three years the death benefit is a return of premium plus interest. After that the full death benefit is paid. The full death benefit is paid from day one for an accidental death. Ask your agent or advisor to explain the details.
Guaranteed issue life insurance has some drawbacks. But if you cannot qualify for other life insurance and your spouse needs the protection, then guaranteed issue life could be right for you.
Which type of life insurance should I buy?
It depends on many factors. Your health. How much do I want. How long do I need it. Do I want to build cash value. The best advice is talk to a licensed professional.
The point is age does not disqualify you for buying life insurance. If your spouse would benefit from additional life insurance proceeds, then start looking today.