Senior Life Insurance Questions
Senior Life Insurance Questions and Answers!
What is Senior Life Insurance?
Senior life insurance or final expense insurance is simply a smaller face value whole life insurance policy. Because of the permanent nature of whole life insurance, it is suitable for older people, and can often be applied for up to age 85.
The life insurance does not expire after a term, and so it can be in effect when people really need it, in their elder years! Besides, many term life insurance policies, or those that only last for a set amount of years, are not designed for older people.
Immediate Benefit vs. Guaranteed Issue Life Insurance
Most of the senior life insurance policies as few health questions, and accept most reasonably healthy people who do not have a terminal disease and are not in a nursing home. They will provide an immediate death benefit. So let's say you want to buy a $12,000 life insurance policy. As soon as the policy is in force, your beneficiaries would be entitled to that entire amount if you passed away.
They can use the money to help pay for your funeral, transport your body, settle debts, or anything they choose. For example, a senior citizen could leave the $12,000 to his or her child. That child may need $8,000 to pay for funeral expenses, and be able to keep $4,000 as a legacy from their parent! The money from a life insurance policy is usually tax free.
However a Guaranteed or Graded Benefit Life Insurance policy may be suggested for a senior with a serious disease, or for one who is in a nursing home. In this case, the policy will have a waiting period. If the person survives the waiting period, they will be able to leave the entire face value to their beneficiary. If not, their beneficiary will usually get the sum of the premiums already paid plus an pre-determined interest rate.
For those who cannot qualify for immediate life insurance, a guaranteed life insurance policy looks like a no-lose deal. However, if a person can qualify for an immediate benefit policy, they should choose it because the rates will be cheaper and their beneficiary can get the entire amount right away if the person passes away.
Why Buy Senior Life Insurance?
Funerals are expensive, often costing from $7,500 to $10,000 and more. A senior life policy is an affordable way to plan for the expense. Sometimes the children of the older person will offer to pay for it because they know they will have to make final arrangements. Instead of having to worry where they will find $10,000 when they are already experiencing a sad time in their life, they can feel secure, knowing that money will not be a problem.
I cannot give you an exact price quote, but many seniors can find a plan for $50 to $100 a month. Keep in mind that these are also cash value policies. When they have built up cash value, they can also be borrowed against. Some senior life policies can even be paid up after a time. A healthy retired person could buy a very affordable final expense plan at 65, pay it up after 10 years, and know that they never have to worry about it again.
Before you buy a senior life insurance policy, read our tips on how to buy a senior life insurance policy here!
If you are still confused about term life insurance vs whole life insurance vs universal life insurance, be sure to visit us at the best place to Compare Insurance Plans.
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