Searching for senior life insurance that best suits your needs, is not the easiest thing to do in the world. There is seemingly an endless number of life insurance companies to choose from, and a range of different policies to look through. The process can be downright overwhelming. Although finding the right policy can be difficult at any age, it is especially tricky for seniors, as they often have unique challenges. For instance, many seniors might find it difficult to locate a policy because of their health issues or age. Here is a look at the different types of life insurance policies that could suit your needs as a senior so that you can make an informed decision.
Term Life Insurance
Term life insurance is the most common type of life insurance. However, it is usually the case that people purchase this kind of policy at a younger age. Term life insurance is beneficial to those who need to put their children through college, or who still have mortgages. However, it is often the case the seniors choose a different type of policy as they have different needs than when they were younger. That being said, you may still want to look at the advantages of a senior term life insurance policy.
Pros and Cons of Term Life Insurance
The benefits of term life insurance are that the face value of this type of policy typically is higher than other kinds. For instance, many insurance companies will not offer a term life insurance policy for less than $50,000, which can be beneficial to those who need a larger payout. Additionally, term life insurance tends to be more affordable than its whole life counterpart. Lastly, these policies are more flexible so you can decide your coverage amount, payment, and term length. Insurers tend to focus on health issues when they issue term life insurance. This means that if you are not in good health, you’ll likely find it hard to get approved. Moreover, the underwriting process can take quite a bit of time and so if you are in a hurry to obtain a policy this might not be the best option. Lastly, some term life insurance companies will not even offer plans to those who are over 80 years old.
Senior Guaranteed Life Insurance
This type of policy will not discriminate against you simply because of your age or health. This means that as a senior, a guaranteed life insurance policy may be the way to go if you have health problems or are older than 80 years old. Some life insurance for seniors will allow you will offer a no medial exam policy. These can be more expensive but have there benefits too.
Pros and Cons of Guaranteed Life Insurance
If you are in poor health than guaranteed life insurance will provide you with a way to obtain a policy. This is why older seniors often opt for this type of policy, as there is no medical exam needed. If you are considered to be a high risk for other life insurers, then this sort of policy can be a valid option. The majority of guaranteed life insurance policies would not give a payout until the policy has been open for two years. This means that if you pass away before this time, your family will not be provided with coverage. However, the company typically will refund the money that has already been paid towards the insurance. The biggest disadvantage of this type of policy is that it is much pricier than other life insurance options.
Burial insurance is a very popular choice for seniors. It very often suits the needs of an elderly individual. If you are on a budget, but still would like to provide your family with coverage for your burial expenses this could be an excellent option.
Pros and Cons of Burial Insurance
A medical exam usually won’t be needed for this type of policy, as you simply need to answer a few medical questions. This kind of coverage is best for those who would not be able to obtain life insurance otherwise. Burial insurance typically has a much lower value than other types of policies. It usually only provides enough coverage to cover the burial expenses, leaving your loved ones without sufficient amounts to support a family or to cover any debts. Despite the disadvantages, for many seniors it still is the best option.