Life Insurance for Seniors: What You Need to Know About Policy Options and Benefits
Life insurance plays a vital role in financial planning. It serves as a safety net for loved ones in the event of the policyholder's passing.
Senior life insurance is intended to ensure that family and other loved ones have the cash needed to fund the final expenses when the insured senior passes away. Life insurance proceeds can also be used to fund estate taxes or leave a sum to a charitable cause. Make an informed choice and choose a Life Insurance plan that aligns with your financial needs and objectives. Below you will find a brief overview of the different life insurance policy options available to seniors.
Types of Life Insurance Policies for Seniors
Term Life Insurance
With Term Life Insurance, premiums are fixed for a set amount of time, usually between 10 and 30 years, in which protection is offered. Term Life Insurance usually provides the most coverage per dollar. Unlike Whole Life Insurance, Term Life Insurance does not have a cash value component but this makes it more affordable.
Whole Life Insurance
Whole Life Insurance, also known as Permanent Life Insurance, provides coverage for the entire lifetime of the insured. It also has a cash value component that grows over time.
Guaranteed Issue Life Insurance
A type of life insurance that can be guaranteed irrespective of your current health. Although rates are higher than other types of life insurance and coverage amounts are lower, a medical exam and health questions are not required for Guaranteed Issue Life Insurance. It can be acquired as either term or whole life insurance.
Final Expense Insurance
Final expense insurance covers expenses that will be incurred at the end of life. Burial insurance and funeral insurance fall under this category of insurance. See our blog here about burial trusts and life insurance.
Key Considerations When Choosing a Policy
When choosing a life insurance policy there are many things to consider. Keep the following in mind as you choose your life insurance policy:
Age and Health
Age and health significantly influence life insurance options. Pre-existing health conditions or a history of serious illness can increase costs and limit the policies available. As an individual ages life insurance options diminish and the policies that are available tend to be more costly.
Premiums
Premiums are the monthly amount a policyholder has to pay each month. As age increases and health decreases, premiums increase.
Coverage Limits
Along with premiums, coverage limits increase with age and declining health. Often policies will have coverage caps after certain ages are met.
When reviewing policy terms, carefully examine what the policy covers.
Exclusions and Potential Limitations.
With life insurance, there are other limitations to consider. Some policies require a waiting period before benefits can be acquired. Other policies will not accept applicants over a certain age or with a specific preexisting health condition.
Benefits of Life Insurance for Seniors
Acquiring the right life insurance plan takes careful examination of your unique situation, as well as knowing the options available to you. In the case of an emergency or the end of life, life insurance policies can offer a cash value emergency fund.
How Informed Choice Can Help Seniors Find the Right Policy
With life insurance, you will be able to mitigate stress for yourself or loved ones. Carefully examine your life insurance options to make an informed choice for your life insurance.
Contact us here for Informed Choice's life insurance experts. We are here to help seniors find the best customized life insurance solutions.
