Life Insurance for Elders
Life Insurance for Elders
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Are you concerned about what you will (or won’t) be leaving behind for your loved ones when you pass away?
As a senior, life insurance may not seem like something you can get at an affordable price. But for many older adults, it is a realistic option that can provide considerable peace of mind.
And although life insurance for seniors tends to be more expensive than what’s available for younger people, older adults still represent a significant share of that 60 percent.
But getting a life insurance policy isn’t necessarily right for everyone.
It depends a lot on your particular situation.
That’s why it’s important to understand your options—keeping in mind that not all life insurance plans are created equal. Besides, you might not even need a life insurance policy.
Or the options available to you may not be worth the added expense.
Do you need Senior Life Insurance? Life Insurance for Elders
When you pass away, your loved ones will likely be feeling a lot of grief.
And you probably don’t want them to feel any extra stress at such an emotional time, especially if it can be prevented.
Even if your loved ones will inherit enough assets to cover most of their ongoing expenses, they still may struggle to pay for your funeral services, including burial or cremation.
That’s why, for instance, you might need life insurance if the cost of your final expenses would cause immediate financial hardship for your family, in spite of the assets you’ve built up over time.
The same thing may also apply to any unforeseen legal or healthcare expenses arising from your death (or the medical or personal care leading up to it).
Life Insurance for Elders: Types of Life Insurance for Seniors
No Medical Exam Insurance: For those aging adults who are not able to qualify for a permanent life insurance policy due to the medical exam requirements, there are policies that do not require an exam. These are much easier to qualify for, however, they are also going to cost more. If the applicant has a terminal illness they will not qualify.
Guaranteed universal life insurance (GUL)
This type of insurance is often recommended as a better option than whole life. That’s because it can provide a lifelong death benefit without the need to pay such high premiums for it. In fact, the premium amounts tend to fall somewhere between term and whole life premiums—often closer to term. And the premium is usually fixed for the life of the policy. So GUL is usually more affordable than whole life. However, GUL policies do not have a cash-value component.
Guaranteed-acceptance life insurance
Also known as “guaranteed-issue,” “simplified-issue,” “guaranteed-approval,” “no-exam,” or simply “guaranteed” life insurance, this type of policy can provide coverage to any senior who falls within a particular age range—usually between 50 or 55 and 80. Depending on which state you live in, you can get this type of life insurance up to 89 years old.
After age 80, many plans of this type expire—unless they are permanent policies.
But guaranteed life insurance is worth it for seniors who need some coverage, can afford the premiums, and don’t qualify for any other type of policy due to health and/or lifestyle issues.
That’s because, unlike other types of life insurance, guaranteed life insurance for seniors doesn’t involve any medical underwriting.
You don’t have to fill out a long health questionnaire, undergo a medical exam, or give an insurance company access to your medical records.
You simply choose a coverage amount you can afford and apply for the policy.
Unless you don’t meet the age requirements, you generally can’t be turned down.
Plus, with many policies, the premium is fixed or “level” for the life of the policy.
And if you pay your premiums on time, your policy cannot be canceled (unless you reach the age when it expires).
Keep in mind that the maximum coverage amount is usually only $25,000 to $50,000.
And there is often a two-year waiting period after the policyholder’s death before beneficiaries receive the full amount owed to them. (Until those two years have passed, they may only get an amount equal to the total premiums that have been paid.)
Guaranteed issue insurance is available for anyone, regardless of health issues, with almost no exceptions.
However, there is a 2-year waiting period.
If a senior dies during that time, the company returns the premiums to the beneficiary, in addition to any interest paid.
The beneficiary receives the full amount if the insured dies after the waiting period or if the death is caused by an accident during this time. T
The cost of guaranteed issue coverage is higher than other life insurance policies for seniors, which is one of the reasons why your loved one should only consider this type of coverage if he or she does not qualify for universal or final expense policies.
Some home care expenses may be covered by certain life insurance policies.
Final expense insurance – Life Insurance for Elders
Also known as burial insurance, this type of plan is designed for people who simply want to help their loved ones pay for the cost of a funeral or memorial services when they’re gone, which may include cremation and/or burial in a cemetery.
The difference between burial insurance and life insurance of most other varieties is that you often don’t need to undergo a medical exam.
However, you may need to provide a little more health-related information than you would for a guaranteed-acceptance plan.
Many final expense policies provide permanent coverage.
But the maximum death benefit tends to be relatively low—in many cases, $40,000 or less.
Still, that’s generally high enough to allow you to choose a coverage amount that will pay for the kind of services you want.
After all, the median cost of a funeral that involves viewing and burial is $8,755 (with a vault for your casket) or $7,360 (without a vault).
Or if you want a funeral with cremation, the average cost is about $1,100 lower than one with burial.
Of course, there are additional costs to consider.
For example, burial plots cost between $1,000 and $4,000, on average.
And simple headstones tend to cost between $1,000 and $2,000, although elaborate ones can be priced as high as $10,000. Also, your loved ones may need to pay extra for things like burial clothing, a casket or urn, an obituary, flowers, and food service.
What to expect from Insurance Companies for life insurance seniors
In addition to your exam results if you opted for the exam, or phone interview results if you opted for a no-exam, life insurance providers are also looking at your prescription history, your motor vehicle record, your Medical Information Bureau (MIB) report, and varying levels of your public credit history to approve your policy.
If you want a life insurance policy that will cover you for both natural and accidental causes anywhere you go in the world, where your full death benefit is available for your beneficiary the day your policy is in force if something were to happen to you (other than for suicide in the first two years), then everything we have discussed thus far is needed for the life insurance carrier to price that risk as accurately and competitively as possible.
How To Decide If No-exam Life Insurance Is Right For You
Now that you understand what is needed to get approved, let’s circle back to deciding if an exam or no exam route is best for you.
You need to ask yourself a few questions and decide what matters most to you.
Do you want your policy as quickly as possible?
Do you want to pay the absolute lowest price?
Do you want the top-rated carrier name you recognize regardless of the price?
Do you want to complete the application yourself without talking to anyone and apply online?
Do you prefer to speak with a licensed agent to go over all your options and questions?
And if you want to compare life insurance seniors online go to www.MintcoFinancial.com
Mintco Financial Best Affordable Life Insurance Seniors 2021 Instant Quotes Online
Attaining the proper life insurance coverage can be complicated and frustrating.
If you have any questions or wish to discuss your options, give Mintco Financial’s life insurance team a call at +1 (813) 964-7100
Compare Life Insurance Seniors online and instant: www.MintcoFinancial.com