Senior Life Insurance: Give Yourself Some Extra Security
Are you a senior 55-80 years of age, and concerned with how your funeral and other final expenses will be managed after your death? Senior life insurance can cover your funeral arrangements, as well as provide financial security for your spouse that is left behind. While there are relatively few restrictions for seniors who are seeking life insurance, you will still need to determine which type of policy is best for you. But before making that choice you will need to take into consideration the insured’s age, health and financial needs to find a policy that is appropriate.
Once you determine the coverage you need, you should research different insurance companies to see who offers the most inclusive and affordable policies. The most common inclusions offer coverage for funeral expenses, as well as coverage for medical expenses, pension replacement and estate taxes. And while some companies may restrict certain products by age, with a little homework, you can find the company that caters to your individual needs.
Most Common Types of Senior Life Insurance Policies
There are five types of senior life insurance policies that are commonly offered by most life insurance companies. The first and simplest of all policies is the term life insurance policy. Term life is exactly as it sounds, it covers you for a period (or a term) of time. A term could be ten years or as many as thirty years, usually depending on the insured’s age. Term life insurance is generally popular with younger and healthier seniors as the cost is lower but the pay out is larger. Permanent life insurance is the most common because it covers you for life. There are no re-qualifying periods as long as payments are made on time, and payments go towards a cash value account that you can borrow against later in life. The most comprehensive of all life insurance policies is the whole life insurance policy. This policy is most expensive but it offers additional coverage that other policies do not offer (including a living-benefit for those that become terminally ill and need money for medical bills, etc.). After ten years, you will be able to borrow against your policy or cash out altogether.
Lastly, there are life insurance policies that offer the ability to save/invest money paid towards your life insurance policy, much like a mutual fund. A universal life insurance policy allows you to split your payments towards life insurance and a savings/investment plan. This is the most flexible life insurance plan and it is up to you how much money goes to each. Cash accumulation is guaranteed and your interest rate is fixed. The variable universal life insurance policy is entirely a cash value policy where your payments are invested and they grow at a much faster rate than the universal life insurance policy.
Insurance Without a Medical Exam?
More and more Americans are looking to get various life insurance policies without needing a medical examination before signing up for the policy. Commonly referred to as "No Medical Exam Life Insurance", this is not a specific type of medical insurance policy. Instead no medical exam references the specific underwriting of the policy. Companies may offer a variety of coverage, including term life, whole life, and even final expense policies with no medical exam requirements. Some companies even offer no medical exam policies at comparable costs to competing policies that may require a prior medical exam. Some of your top options for policies with no prior medical exam are as follows:
- Haven Life: Haven Life (a relatively new insurance company that is own by Mass Mutual) offers no medical exam life insurance plans. They have an easy application process, and their pricing is comparable to other plans. Their Haven Simple plan is a term life policy that is 100% digital, and has no medical exam, and can cover up to $500,000.
- Mutual of Omaha: Mutual of Omaha also offers plenty of policies that have no medical exam requirements. These policies are available to people of all age groups, families, individuals, and even seniors. For seniors the policies you will be most interested in will be the Guaranteed-Issue Whole Life policy, and the Term Life Express policy. Both have no medical exam requirement.
- New York Life AARP: Another long established insurance provider, AARP and New York Life offer great options for seniors. Some basic info about New York Life: They have three great plans that you can choose from, although each have different requirements- Level Benefit Term Life, Permanent Life Insurance, and Easy Acceptance. AARP makes it easy to get a quote (you don't even need to be a member!) and coverage is available for seniors 50 to 74 years of age and their spouses.
Benefits of Senior Life Insurance
The main benefit of having a life insurance policy is to prevent your untimely death from financially impacting a loved one. Once you have a life insurance policy established, you will have the security of knowing that your arrangements can go ahead as you wish without burdening those close to you. The main causes for family members to incur debt upon a loved ones death, include: funeral expenses, children and/or spouses depending on your income, those that will inherit your debt, and heirs that owe estate taxes on their inheritance.
- Funeral expenses-The average cost of a funeral/memorial service including burial is close to $10,000. And if you have not made provisions than those closest to you will be burdened with your funeral arrangements. When life insurance pays for your final expenses, all arrangements can be made prior, sparing grieving family from even more stress.
- Travel expenses-Whenever a loved one dies it is natural for family members to want to attend their service. But this expense is often overlooked during the planning stages. Grieving loved ones want to attend, and a life insurance policy can provide provisions for family to reunite in their grief.
- Your children or spouse could depend on your income-An untimely death can be financially devastating for your dependents. If you want your loved ones to continue to live in the standard they are accustomed than a life insurance policy is key. It is advised that both spouses are covered under policies.
- Those that will inherit your debt-Spouses and any joint account holders or cosigners may be held financially responsible for your debts after your death. It is prudent to have a life insurance policy to pay those debts and to relinquish anyone from financial responsibility.
- Heirs that owe estate taxes-Depending on the value of your estate, your loved ones may be required to pay an estate tax. It is common to take out a life insurance policy to offset those costs.