Finding low-cost senior life insurance can be difficult, but many senior citizens need insurance policies to keep their households financially protected. By understanding how different types of life insurance work, you can get an affordable policy that provides adequate coverage.
Why Term Life Insurance Works Well For Senior Citizens
In order to find affordable life insurance quotes for seniors, you should look for a term life policy. Term life insurance is less expensive than permanent forms of insurance like whole and universal life, although it does not offer a return of the policyholder’s premiums at the policy’s end. Standard term policies have a set death benefit that the insurer will pay if the insured dies during a set term, which ranges from 1-30 years. Senior citizens will usually want a relatively short term policy with a term of 1-10 years.
There are a few key terms to consider when purchasing life insurance for seniors:
- Guaranteed renewable policies can renew at the end of the their terms, although their premiums will not necessarily stay the same. A guaranteed renewable policy with a short term might work well as temporary life insurance for a senior citizen.
- Annually renewable term life insurance policies operate for a year at a time. They usually have a guaranteed renew-ability clause. However, a senior citizen will see premiums increase significantly from year to year with this type of policy.
- Some clauses like double indemnity are designed for policyholders with potentially dangerous jobs or hobbies. Senior citizens can often refuse these types of clauses to reduce their insurance rates.
Lowering Premiums And Getting Great Coverage
To get the most affordable senior life insurance possible, you should try to buy a policy as early as possible. Make sure to buy an appropriate amount of coverage and buy the longest term length that you can afford, provided that the policy falls in line with your long-term financial strategy. A longer term means higher premiums, but you will pay less overall in premiums than you would pay for several shorter policies.
Another great way to get lower life insurance quotes for seniors is to stay healthy. Get regular physicals and medical examinations. If you have a clean bill of health, you should still be able to find affordable life insurance for seniors. Life insurance companies use complex tables of actuarial statistics to decide premiums, and a lack of preexisting health conditions often counts for more than the applicant’s age.
Although you might initially have trouble finding affordable senior life insurance, you can often find a great policy by taking the time to compare insurance rates from as many providers as possible. Make sure to understand how your policy works and check to make sure that your insurer is licensed in your state before you sign a contract. Check the life insurance company has a strong financial rating from A.M. Best. With the right research, a senior life insurance policy can provide a lot of peace of mind.
Things you Really Need to Know about Senior Life Insurance
Senior life insurance has become more affordable then ever.
This is due to major advances in medical care that allow people to live longer, healthier lives. This is good news for senior citizens. Unlike a decade ago when life insurance was next to impossible to procure, seniors are able to not only find policies, but get very affordable premiums. However, there are a lot of people who continue to go without coverage and even more who are paying for too much. How much insurance is right? The only way to answer that question is to learn as much as possible about how it all works.
Fibbing on the Application
Don’t ever let the temptation to tell small, white lies on your application overwhelm you. There are no white lies when it comes to life insurance! Although it might save a little money on payments, it can end up costing your beneficiaries everything. If the insurance company finds out that an individual lied on their application, they can choose not to pay.
Are Medical Exams a Requirement?
The answer to this question depends on the insurance company. Some providers require an exam, while others just highly recommend it. Insurance companies have to make money to stay in business. That means they can’t take risks. The more they know about an applicant, the better. That means that applicants need to go ahead and take the exams. Get a check up. Let them run their tests. Anything you do to prove that you’re in good health will lower the cost of life insurance. This is especially true for senior citizens.
Can Smokers get Life Insurance?
Yes, but they will be penalized. Quitting smoking will greatly reduce the premium of coverage. Of course, smokers will have to prove that they have quit smoking for at least one year.
Note: Most of the major insurance companies will insure up to $30,000 without requiring a medical exam. Even in this case, it’s still a good idea to get one. Prove that you’re low risk.
Which Policy is Best for Seniors?
So now we cut right to the chase. Which senior life insurance policy is best? Some companies guarantee coverage. The best way is to compare policies and choose the right one. Here are some examples of different types of life insurance for seniors.
Burial and Final Expenses
This is the most common insurance pushed on senior citizens. These policies are also known as Whole Life Insurance. This insurance covers enough money to cover final funeral expenses and can sometimes even leave enough money left over to pay off a few other debts. This insurance never expires so long as the premiums are paid.
This coverage is tailor made for those who have been rejected for health reasons. There is a catch. This policy only lasts for a set amount of time:
• Two Year
• Limited Benefit
The coverage is only paid out if the applicant dies from an accident. If they die for health reasons, the insurance broker refunds the premium plus any interest it has accumulated.
Term Life Insurance
Term life insurance works exactly how the name implies. The coverage expires once the term of the policy runs out. There are advantages to term life insurance though. One is that the premiums are normally less expensive than whole life insurance. Another is that term life is available for senior citizens. As with all policies, higher risk people will pay higher premiums. Sometimes, term life is the only options available to senior citizens.
The internet is a great way of finding good rates on life insurance. Here are some of the advantages:
• Able to easily compare quotes from hundreds of insurance companies in just a few clicks.
• Sometimes, insurance companies offer promotional codes that are available only to those who apply online.
• Don’t have to commit. So there’s no pressure. The applicant has plenty of time to decide.
The only downside to finding senior life insurance using the internet is that older people might not be comfortable with computers. Fortunately, that’s what kids and grand kids are for. Some people still might be more comfortable discussing the matter face-to-face.