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It is never too late to purchase life insurance, even life insurance for seniors. Usually, advancing age groups mean insurance premiums rise drastically. This is not always the case. There are many plans that offer life insurance policies for seniors at reasonable rates.
Life insurance for seniors is usually a whole life policy, which has a much smaller face value than it would for someone much younger. These kinds of policy can be purchased up until the age of eighty-five. Because this kind of life insurance does not expire when a term has passed it is like a safety shield and is available especially in those later years when it is really needed.
Life insurance for seniors is available for as little as $15 a month. Usually, these inexpensive policies offer a low death benefit. Typical deferred life insurance policies offer as little as $5,000 coverage and go up to $100,000. Guaranteed life insurance does not always require a health exam, which makes it available to many additional patients.
Many states require life insurance companies to proved guaranteed coverage to those over the age of 63. Policies are generally short term, and only pay a limited death benefit for the first two years. After two years, the full price of the insurance is payable to your beneficiary at the time of your death. Before two years, most policies will pay the total of your monthly payments plus interest. This form of life insurance is called deferred life. The one downfall to deferred term life insurance is that it is not available to those over the age of 85.
The policy also provides a death benefit to whoever is named as beneficiaries. Money from this death benefit can be used to take care of final expenses and settle any outstanding debts. Whatever money is had from a senior life insurance policy is usually tax-free.
For any senior who has a serious disease, or if they are in a nursing home, a Guaranteed or Graded Benefit Life Insurance policy may be considered. These policies have a waiting period and once the senior lives beyond the waiting period, they can leave the face value of the policy to their beneficiary. Otherwise the beneficiary will receive the total of the premiums that have been already paid and in addition to that, an agreed interest rate. A senior, who cannot get any life insurance because they do not qualify, can purchase a guaranteed life insurance policy. Accidental death is usually paid in full as soon as the first monthly payment is received. If the insured is killed in an automobile accident, his or her family would receive the full amount of the policy. This is the one exception with deferred life.
Seniors need life insurance because cost of death is an expensive thing. It is usually difficult for a senior’s loved one to take of these expenses by themselves. Also some senior may have an accident or misfortune, like the loss of a limb, and the cost of treating them can be taken care of by the policy coverage and benefits.
This article was contributed by Prerna Mordani.
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