Senior Life Insurance - What to Know
What is senior life insurance? This insurance is designed to offer a variety of benefits to seniors that are not available or really necessary when you're younger.
Two most common types of insurance policies available for individuals today include whole life or term life insurance.
Whole life insurance policies can be purchased at any time, though the older you get, the more expensive the premiums for such policies will be. Term life insurance is cheaper, but often has an age cutoff limit such is 75, 83, or whatever is designated by the life insurance policy carrier.
Senior life insurance helps provide a permanent type of life insurance for seniors nearing retirement age, or older. Senior life insurance may help the elderly pay for:
The longer you wait to purchase life insurance, the more expensive it will be. This is because as people age, medical conditions and disease processes may develop and cost more money to treat. Because of this, the older you get, the higher your premiums may be, as expected costs for medical care for seniors naturally rises throughout the aging process.
Senior life insurance is more expensive than insurance policies offered to younger individuals, because basically, seniors are risky to ensure. While this seems unfair, life expectancy has always been used to determine life insurance policy rates.
Through the underwriting process, the insurance carrier will look at the applicant's lifestyle, health history, family health history, and their age, height, weight and gender.
While this may seem like a major invasion of privacy, the insurance company wants to ensure that covering a specific senior isn't going to put them at a high risk for paying out benefits or losing money.
Today, health care reform may change the rules, regulations, age limits, inclusions and exclusions for life insurance policies as well as health insurance policies for individuals, but for now, most life insurance companies are required to pay death benefits to any beneficiary that a policy owner designates, regardless of age.
It's a basic fact of life that those who have been diagnosed with any type of medical condition or those who have been diagnosed with the disease process will have to pay more for their life insurance because the medical costs associated with treating such disease processes can be astronomical.
When looking into senior life insurance, consider whether or not you want term life insurance or permanent insurance. Most life insurance carriers offer a variety of rates to help serve different needs and age groups.
Providers may offer immediate benefit plans, limited benefit plans, and accidental death benefit plans. Many such plans may also offer coverage for individuals up to 85 years of age. For example, one plan may offer minimum and maximum face amounts, and some may offer optional accidental death benefit riders or other options.
A standard whole life plan, which may be effective until a person reaches 85 years of age, may have a face payout amount from anywhere between $1,000 to $20,000. Some are designed for those with minimal medical issues or conditions, while others may be designed for those with more severe health issues.
Some of the most common factors to look for in insurance policies may include but are not limited to questions regarding:
Regardless of who you're considering obtaining a policy through, make sure that you understand the limit to the age the policy will stay in effect, the benefits paid out, as well as the obligations, rules or regulations that you must follow to be approved for such a policy. Make a list of questions or concerns and make sure that each one is answered, most preferably in writing, before signing on the dotted line.
NOTE - Always seek the knowledge and recommendations of an insurance professional before deciding the best options for you and your family.