Do you think it's too late for life insurance? You're never too old to find security your family. Here are tips for buying the best senior life insurance.
Keyword(s): senior life insurance
As of July 2014, 14.5% of the total population in the United States are 65 and older. This equates to 46.2 million people.
If you’ve reached the threshold of golden age it makes senses to start thinking about senior life insurance. It helps alleviate the financial burden that your family has to bear once you’re gone.
With a myriad of insurance options on the market, buying senior life insurance can be a complex and daunting process. But we can help you!
If you’re on the hunt for the right senior life insurance, make sure to check out the following tips.
4 Tips for Buying Senior Life Insurance
1. Burial or Final Expenses Insurance
The most common senior life insurance is burial or final expenses insurance. As long as you pay the premiums, the policy does not expire.
Typically final expenses policies come with a smaller amount of benefits compared to traditional life insurances. They only cover enough money to pay for funeral and burial expenses as well as a few debts. In general, the death benefit varies between $5,000 and $25,000.
2. Single Premium Policies
Single premium policy is a good option for seniors who wish to leave money behind as inheritances.
Instead of small monthly payments, a big lump sum of money is paid to the insurance company upfront. This is ideal if you have a good amount of savings that you don’t need right now.
In general, it’s reality easy to get qualified for single premium policies. Moreover, you can have access to the cash value and withdraw the funds in case of emergencies or other events. This way you get to have better control over your investment.
3. No Medical Examination Life Insurance
Usually, you need to take a medical exam and meet the minimum health level in order to be qualified for regular life insurance. This, however, might be a problem for many seniors.
If you get denied for a regular life insurance policy due to health reasons, consider no medical examination life insurance coverages. No medical exam is required, but you will be asked a few questions about your health.
The drawback is these policies are more expensive. They also require the policyholder to live for a minimum number of years before the coverage takes place. So if you die before that minimum number of years is reached, your family may receive only a partial of the death benefit.
4. Inform Your Loved Ones
Once you bought a senior life insurance policy, avoid keeping it a secret. Give your loved ones the policy’s proceeds and let them know where you keep the important papers.
The Bottom Line
Did you know that premiums generally cost more as you get older? This means there’s a significant difference between the premium rates at age 65 and age 85.
The best time to apply is now. Be realistic and make sure to do your due diligence. Shop around to find out which policy is best for you.
We offer free, online comparison service to help you make well-informed about your senior life insurance plan. For more information, contact us today.