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. Read also: Life Insurance Rates for Seniors.
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. Read also: Life Insurance Later in Life.
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. Read also: Why Seniors Need Life Insurance?
Guaranteed Coverage
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
- Graded
- 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. Read also: How much is Your Life Worth?
Shopping Online
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.