Affordable Life Insurance for Seniors
Looking for and comparing life insurance policies isn't easy for anyone, and may be more complicated for seniors.
Existing medical conditions, needs, and the wealth of benefits as well as restrictions with many senior life insurance policies can make the search daunting for many.
New health care reform is designed to prevent health insurance companies from denying anyone due to their current medical condition, but such policies may still have certain restrictions that seniors should be aware of.
When looking for a senior life insurance policy that is also affordable, determine your needs now and in the near future. Some life insurance policies are very cheap, while others are outrageously expensive, but before you can even begin to compare, make a list of your concerns in regard to need.
Life insurance for seniors offers a variety of options including whole life insurance, universal life insurance, term life insurance, or variable life insurance policies. Some are easier for seniors to get than others, and some have caps on ages.
For the best in fullest coverage, be prepared to answer questions from insurance under- writers, and be honest when answering such questions. Be prepared to discuss not only your health, but also the health of your family. Be prepared to answer questions about your current lifestyle. The insurance underwriter may want to know if you engage in regular health checkups and exercise, and if you smoke or drink. If you don't, you may fare better than a senior who smokes, drinks and doesn't exercise.
Ask yourself, and your insurance agent, a number of questions before deciding on a specific type of policy or coverage benefits. For example, how much life insurance do you need? Does your spouse or children need extra funds to pay off medical bills, funeral expenses, or credit card debt if you die? Do you need monies to meet the state taxes or in providing rest-of- life income for a surviving spouse?
In addition to such questions, carefully choose your insurance company provider. Find out what types of affordable life insurance various companies sell, and their reputation.
Determine how long the insurance company has been in business, and check their rating with your state's insurance department or Better Business Bureau. Find out if you can change your mind after a policy has been purchased. In most cases, insurance companies give clients between 10 and 30 days to change their mind if they so choose, and receive refunds of any premiums paid.
Know the difference between different types of life insurance policies. Term life insurance policies are good for individuals looking for insurance for between 10 and 20 years. The costs of term insurance can increase as you age, but comparing between providers may offer you a number of choices that are both effective for your needs as well as affordable. Universal life is similar to term life insurance, but also builds cash value that you can eventually borrow from if necessary.
Whole life insurance policies are the most expensive, although they offer the greatest security. Whole life insurance policies are generally bought by individuals in their 20s and 30s and offer higher payouts, though premiums can be pricey.
Many people receive life insurance offerings in the mail. These are called graded life insurance policies. Such policies typically offer limited face values and policies pay only partial benefits during the first two years of the policy unless you happen to die in an accident. Graded life policies are similar to whole life policies, with set premiums and benefits over the life of the policy.
Compare costs, benefits, exclusions, and premiums from at least three different life insurance companies before choosing a policy that you feel will best suit your needs as well as that of your family.
Choose your life insurance carefully. While you want affordable life insurance, you also want the right type of policy and coverage that will best suit the needs of your loved ones.