Senior Life Insurance – What Types of Policies Are Available?

Senior Life insurance for senior citizens is very important should they wish to leave behind some kind of financial legacy for their loved ones; however, oftentimes its cost can be quite prohibitive. If you are going to buy from an independent agent, always get the quotes and breakdowns before making your purchase decision.

Some policies have more expensive premiums than others, both overall and per dollar of coverage. For example, term life policies are less expensive than their Whole life cousins.
Final expense insurance

Final expense insurance

Final expense insurance policies are small whole life policies specifically designed to cover end-of-life expenses, usually directly sold to seniors with lower coverage limits and without requiring a medical exam, in comparison with other types of life insurance policies.

With anything, however, final expense policies still maintain some key points to be considered. For example, many have waiting periods one to three years, and normally, premium pricing is based on your age and your health. Not everybody will qualify for one. Insurer firms may charge higher premiums to smokers than non-smokers.

If you are purchasing a final expense policy, be sure to consult with an experienced agent. They can look through multiple insurers to find one that will fit your needs and budget. They will help explain the terms and conditions so that you are able to make a proper decision.

The final expense policies are much easier to qualify for in comparison with other available life insurances; however, they are not for everybody. They cover final expenses like funeral and burial expenses and any outstanding debt.

In many cases, final expense policies do not require any medical examination, though you may be asked to fill out a short form about your health. They are tailored for people who want life insurance quickly or who have been denied other, more traditional life policies; not ideal for the person in poor health, for which guaranteed issue or simplified issue life policies may prove a better choice.

Term life insurance

This can make term life insurance for seniors the perfect way to get temporary coverage on limited incomes and budgets. In comparison with whole life, term has lower internal costs, which means more of your money goes directly to the death benefit and not to company expense. The PL Promise Term by Pacific Life provides competitive terms tailored for ages over 60 and is renewable up to age 95 for continued protection after the term is up.

Many seniors buy term life insurance to provide for their funeral expenses, outstanding debt and medical bills in case of death. These policies are relatively inexpensive compared to other forms of life insurance coverage; they may help spare your family from excessive financial burdens at your passing.

Some companies that sell senior life insurance offer additional features, such as a critical illness rider or accelerated death benefits, that may help seniors. In either case, a portion of your death benefit could become accessible if an illness develops—but such riders may involve restrictions and reductions that reduce the benefits or exclusions that apply.

While choosing a senior life insurance policy, make sure it serves your needs and purposes. There are policies where there is a waiting period before loved ones could claim death benefits; therefore, it is wise to have this in mind while choosing the type of policy. Moreover, some plans increase premiums with age; therefore, contacting an agent to discuss available options of coverage would be wise.

Senior Life insurance Whole Life Insurance

Whole life policies for seniors are one of the best ways to leave a legacy behind to the ones you love, with a guaranteed death benefit and cash value available at any time that it is needed. Indeed, even whole life policies may help pay estate taxes.

Whole-life policies protect for the whole lifetime and eliminate the worries about your policy lapse. They can be more expensive than their term life counterparts, though. It is, therefore, very good to compare rates and coverage options between different life insurance providers before making the final decision. Some of the providers indeed offer flexible premium payments so that one may increase his coverage as need be over time.

DreamSecure Senior Whole Life offers a number of senior life insurance products. In business for over 50 years with a very impressive record, DreamSecure Senior Whole Life is licensed in 39 states plus DC. Their website is rich with resources, and friendly, well-educated staff have provided an extremely pleasant customer service experience.

Keep in mind that the older you become when choosing life insurance for seniors policies, the less variety may be available in terms of policy length and fees. Some companies do not sell term life coverage beyond the age of 60, and one is likely to pay more per dollar of coverage.

These final expense insurance policies are designed to pay for funeral and end-of-life medical expenses. These policies are generally smaller than regular whole-life policies, so in most cases, premiums are much lower, and some may even be underwritten without a medical exam. Some might also provide dividends that increase the overall value over time.

Senior Life insurance Burial insurance

Burial insurance is a whole life policy, offering small death benefits to cover funeral or end-of-life expenses, so it’s perfect for seniors who can’t afford other traditional plans or who do not qualify due to preexisting health issues. Burial policies require no medical exam and are offered by licensed life insurance providers. Burial insurance is available for direct online purchase from many licensed insurers’ websites.

On average, these funerals run more than $8,000 in the US. Burial insurance can help by not having your family pay all of this out of pocket. Look for low monthly premiums along with an excellent financial rating for policies that will have guaranteed payouts when they need them.

There are a lot of types of senior life insurance policies available, and the one to choose largely depends on your pocket and needs. Term life is the cheapest with big death benefit payouts but will end after a specified period of time; whole life gives more security that beneficiaries get money when you die and also includes cash value savings that can be borrowed against or withdrawn later in life.

Other forms of whole life insurance available for seniors, designed to help pay specifically for end-of-life expenses such as funeral costs and outstanding debts, are final expense insurance. While generally offering a lower coverage amount than a standard whole life policy, and most often able to be obtained without medical exams, final expense policies tend to be more expensive than their alternatives but could be very protective in an emergency.

Senior Life insurance Surrender of Policy

If you are ready to cash in the policy, there are various ways to do this. Weigh the possible pros and cons of each carefully before you make a decision. If you choose surrender, then you will get a check for its cash value less fees—this may be as much as 10-35% of total proceeds.

This is when seniors cash in their life insurance policies, sometimes due to financial difficulties or long-term care needs. Others wish to use the death benefit for other purposes, like leaving a legacy. Selling your policy can be an effective way to raise the cash you need without incurring costly premium payments.

Whole life policies may be canceled for coverage anytime for its cash surrender value, which is usually higher than its original face amount. This cash surrender value has been determined in relation to premium payments made towards this policy, the type of policy purchased by you, and any outstanding loans taken against this policy and is usually indicated under “cash surrender value” in your policy statement.

Loan against the cash value of a whole life insurance policy and pay it back with interest before your death will reduce its death benefit by deducting the loan balance due.

Life settlement is just another form of buying life insurance policies wherein investors pay senior citizens in return for the right to own the policy and collect the death benefit subscribed. This can be much better than the alternative options of surrender or lapse, as premiums are almost always much more expensive than death benefits. You do need to be aware, however, that any broker or purchaser of your life insurance will receive your health information, which does raise some privacy issues.

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