Choosing a Seniors’ Life Insurance Company
Do you have life insurance? It’s something no one really wants to think about. But as you get older, it becomes more important to make sure you leave as much as possible to those you leave behind at the end of your life.
There are some common misconceptions about buying life insurance as a senior. Some people assume it must be “too late” if you’re already over sixty or retired, or that it’s unaffordably expensive at that age. Fortunately, that’s not true. Affordable life insurance policies are, in fact, available to seniors, even those who have never held a policy in the past.
Choosing a good seniors’ life insurance company is important. There are quite a few companies out there offering different kinds of policies, including term life insurance, permanent life insurance, and others. It’s usually a good idea to shop around and find a policy whose benefits and costs work for you.
Insurance Over 50: Getting Ready for Retirement
If you’re in your fifties, a good choice might be what’s known as “term life insurance.” Term life insurance covers a policyholder specifically for a given and finite amount of time, the “term” of the policy. Terms are available in five year increments, and range from ten years to thirty.
Term life insurance policies are often the most affordable and flexible option. Unlike other forms of life insurance, they do not accrue additional cash value of time. However, beneficiaries will receive the full face amount of the policy in full upon the death of the policyholder, without being taxed on it.
If you so choose, you can often convert a term life insurance policy into a permanent life insurance policy. This usually doesn’t require you to undergo any additional medical exams or meet other qualifications. Having this option can be beneficial if your financial needs change in the future.
Another option is something called “quality of life insurance.” These policies help prevent your family from being unduly financially burdened by medical bills if you develop serious health problems toward the very end of your life. They allow for “living benefits,” providing much-needed financial aid to your loved ones.
In any case, you’ll probably get a better deal on life insurance if you purchase a policy now, rather than waiting until you’re over sixty-five.
Senior Life Insurance in Your Sixties and Seventies
As you get into your sixties, you start facing a higher risk of serious health problems. Some people prepare for this possibility by converting their existing coverage to a “universal life insurance policy.” These policies are some of the most flexible, giving you options for increasing or decreasing the benefit amount if you need to. The cash value also accrues over time.
If you’re looking for a smaller coverage amount late in life, such as in your seventies or above, ‘guaranteed whole issue life insurance” could be your best option. These policies usually range in coverage from $5,000 to $25,000 dollars, less than many other policy types. It’s designed specifically for older adults. While the coverage is less than other policies, you’re guaranteed to be accepted, and no medical exam is required. This means that your state of health won’t affect your eligibility.
One of the key applications of guaranteed whole issue life insurance is to help your loved ones cover costs and handle outstanding financial issues after you pass away.