When searching for life insurance, there are many viable options that are available in the marketplace today. In finding the senior life insurance policy that will work best for you, however, there are several things that you will need to determine prior to making your purchase.
First, you should have an idea of the amount of life insurance coverage that you need. This can oftentimes be calculated based upon the need that is being insured for. As an example, if you are insuring to cover the unpaid balance of your mortgage, then you can simply go with the amount of money that your surviving spouse or other loved one would still owe on the balance. If, however, you are insuring to cover ongoing income for a survivor, it may take more calculation. If you are interested in obtaining a quote from final expense insurance companies, we are here to help you as well.
There are many seniors who feel that they no longer need the coverage that life insurance can provide. However, this is not the case. In fact, seniors rely on the proceeds from life insurance in many areas – both personal and business.
Reasons Why Seniors Purchase Life Insurance
There are a number of reasons why seniors purchase life insurance. One of the biggest of these is for the payment of final expenses. Today, the average cost of a funeral in the United States can be close to $10,000 – an amount of money that most families may find difficult to come up with in the event of the unexpected. Having a life insurance policy readily available to cover these costs quickly can ease the burden on family and loved ones during an already difficult time.
Seniors may also purchase life insurance for the payment of anticipated estate taxes. While not everyone will be subject to this type of taxation, for those who are, estate taxes can deplete – in some cases – more than half of one’s estate. This means that assets that could – and should – be going to loved ones will instead go to Uncle Sam. However, having a life insurance policy available to pay this tax burden can provide a method of paying these taxes, as well as a way to keep family assets where they belong.
Life insurance for those in their senior years can also be used as an income replacement vehicle. While this use of life insurance is oftentimes only thought of for young couples in the event of a breadwinner’s death, the death of a primary pension recipient can also cause a drastic lifestyle change for a surviving spouse during one’s retirement years.
Today, there are many pension plans that will either stop paying out – or that will drastically reduce the income payments – upon the death of the primary recipient. When this happens, a surviving spouse could lose a large portion, or even all, of his or her income. By putting a life insurance policy in place to replace that income stream, the surviving spouse can continue on.
Many seniors are also very interested in giving to charities. When doing so, a life insurance policy can provide them with a means of giving a great deal more – for pennies on the dollar. By making the charitable entity the beneficiary of one’s life insurance policy, a senior can provide a tax free gift to the charity, oftentimes in a larger amount than could have been donated during life.
Certainly, another reason for purchasing life insurance by seniors is to pay off any outstanding debt so that family or other loved ones won’t be saddled with it in the future. In the past, most seniors would have paid off their mortgage and other debts during retirement. Today, however, life is very different. Due to the down economy of the past several years, debt is at an all time high, leaving many more people – including seniors – in much more debt than ever before.
In order to ensure that survivors are not burdened with mortgage, credit card, or other types of debt, the proceeds from a life insurance policy could be used to pay these balances off upon a person’s passing. Paying off of these debts can also make ongoing living expenses easier for a surviving spouse who may otherwise struggle financially.
Finally seniors choose to purchase a burial insurance policy to cover just the cost of their final expenses. With these types of policies you get a lot of funeral decisions and all the financial obligations out of the way that your family would otherwise have to make. If you do not have any other financial obligations that need to be taken care of, this is a great type of policy to consider.
What Type of Life Insurance Do Seniors Typically Purchase?
There are many types of life insurance policies available to seniors. These include both term and permanent. Term life insurance coverage can typically be purchased with lengths up to 20 or more years.
For those who wish to build up a cash value or investment savings along with their insurance protection, there is whole life, universal life, or variable life insurance. A newer type of life insurance product that is now available – indexed universal life insurance – is also available to seniors.
What we really see is that seniors of different ages get policies for different reasons. To help you get better understand if why each group of seniors might purchase life insurance we put together details of policies for people who are:
In most cases, it will be necessary to complete an application for coverage, as well as to undergo a medical exam prior to being approved for coverage. The medical exam will entail meeting with a paramedical professional who will take blood pressure and heart rate readings, as well as take a blood and urine sample. These samples will be analyzed to ensure that the applicant does not possess any adverse health conditions that could pose a risk to the insurance company in terms of a potential claim. If so, the applicant may be denied for coverage. Or, if the risk is not severe, the applicant may be approved for coverage, but at a substandard classification where he or she will be required to pay a higher amount of premium. But there are still companies who offer no medical exam life insurance, so don’t give up hope on getting the coverage you deserve.
Senior Term Life insurance Policies
Most people who are older do not need to purchase hundreds of thousands of dollars of life insurance coverage. That being said, if you still have children who are not out of the house, a mortgage, or other financial responsibilities, term life insurance coverage will be the best bang for your buck. There are some companies that will offer term life policies up until age 70, but you are going to get the best rates if you get one before the age of 62.
Guaranteed Issue Life Insurance
If a senior is not eligible for “medically underwritten” life insurance coverage, there are other options available. One option is no medical exam life insurance. With this type of coverage, the senior will not be required to undergo a medical exam in order to purchase coverage. There is also guaranteed issue life insurance for seniors.
With this type of coverage, the senior will be guaranteed approval for life insurance coverage – even if he or she has an adverse health condition. In this case, the premium will be quite a bit higher than that of a comparable medically underwritten policy. However, this is oftentimes the only way that some applicants are able to secure the life insurance coverage that they need..
Final Expense Insurance for Seniors
The average funeral in the United States costs between $7,000 and $10,000, depending on which state you live in. This can be a major burden for family members if there is not enough of an estate to handle those costs. This is where a final expenses policy will come into play. These policies are tailor made to handle the costs of a funeral and any other extraneous costs associated with a persons estate. This could include lawyer fees, cremation, or any other expenses deemed necessary. The plans are very affordable and make sense for people whose children are out of the house and have their house paid off or close to paid off.
How To Compare Policies
Just because you’re getting older, don’t assume that you won’t qualify for life insurance – or that your premiums will even be unaffordable. Oftentimes, it just takes finding the right coverage and the right carrier for you and your specific coverage needs.
Before making a life insurance policy purchase, it will be important that you first compare the policy benefits, as well as the premium quotes, from several different insurers. This is because the features that are offered on plans from various carriers can differ from one to another. In addition, the premiums can also vary – in some cases quite a bit. Therefore, it is always a good idea to take a good look at several top rated companies and their offerings prior to moving forward.
In the past, it would have been necessary to contact an insurance agent and have him or her run quotes for different life insurance plans. Today, however, with the convenience of the Internet, it is possible to obtain all of the information that you need within seconds from your own home computer. This will allow you to make an objective comparison of the life insurance policies that can truly fit your needs.
Using the form on this page, all you need to do is type in a few key pieces of information such as your birth date, gender, state of residence, and the type and amount of life insurance coverage that you need. Our form allows you to shop for plans without having to give away personal information. When you are ready to get a policy you can start your application from the results you get after filling out the initial information.
Where To Find The Best Senior Life Insurance Policies
When you’re ready to take the next step and purchase the life insurance coverage that you need, we’re here to help. We work with many of the best senior life insurance companies in the nation – and we can get you the protection that you need quickly and easily. We can also help you to compare policies and prices – so that you can be assured that you not only get the policy that you want, but that your coverage fits within your budget. In order to get the process started, all you need to do is simply use the form on this page.
If you have any questions at all regarding how to compare coverage, obtain premium quotes, or you just want to know more about life insurance for seniors in general – we’re here to help. Our experts are standing by and can address any question or concern that you may have. Please feel free to contact us directly, toll-free, at 888-389-8676.
We understand that purchasing life insurance can be a big decision, so we want to be sure that you have all the information that you need to make the right choice about the coverage that you need to protect the ones you care about most.