Senior life insurance has become increasingly popular in recent years as health concerns among the older population have grown. Seniors tend to live longer than other age groups, but many do not have any life insurance. For this group of senior citizens, senior life insurance can be an affordable way to ensure financial security. In fact, more than half of all seniors (ages 65 and over) own some type of senior life insurance policy.
Seniors often seek senior life insurance to cover funeral expenses, long term care costs, or provide money for family members. But, for some older seniors, senior life insurance is almost always something that they need to consider to provide ongoing financial security for family or to pay burial costs. A policy can be used for any age-related reason – from protecting a spouse’s or children’s well being from death or disability to securing a loan payment for a college education or new home. Some policies allow the insured to borrow against the policy at a younger age and others will finance a whole or term life with cash payments.
Another popular choice for many seniors is to use their policy to pay expenses at a funeral home. Many policies will pay a lump sum for funeral costs and the remaining balance can be paid with monthly premiums. This type of coverage is especially helpful if the family needs to spend a small amount of money on funeral costs as it will be less than the costs of maintaining a full time living.
Some policies will allow the purchase of a policy that has no cash value. This option is similar to a standard life policy in that it will pay a benefit should the insured die within the specified waiting period. The only difference is that there will be no growth adjustment made to the account. Although this option may not provide as much protection as a more traditional whole life or endowment style policy, it is convenient for some senior citizens who do not desire the hassle of taking cash deposits every month.
Another option for many seniors is coverage that provides guaranteed premiums for a specified period of time. These types of policies are often used to cover the cost of medical care for loved ones who are seriously ill and require constant medical attention. While these policies may not provide cash values, they can alleviate the financial stress that can be caused by unforeseen illnesses. In addition, seniors can use their Guaranteed Premiums as a source of emergency funds when they need help paying for long term health care.
For seniors who have an established income, there are many senior life insurance policy options available that can supplement income. Most coverage companies offer coverage for basic hospital and medical bills, disability income, and the purchase of a home. These plans can be used to supplement a income or to replace it completely. It is important to remember that seniors can often purchase a separate policy for cash value. Many people choose to do this so that they can have a source of investment income if things get worse during the course of their lives.
Many seniors find that they need a simplified application to submit for a basic policy. A simple application allows the insured to enter their information and see what type of coverage they qualify for. Once this has been submitted, the insurance company can process the application. It usually takes a matter of minutes to receive a response back from the company. The whole process usually only takes about ten minutes.
When choosing a policy, it is important to understand what all the premiums will cover. In addition to the basic coverage amount, most polices will cover the cost of funeral expenses, legal costs, probate, cremation, cemetery costs, taxes and loan payments. However, some policies will also cover the cost of emergency medical services such as stitches, hospitalization or advanced procedures such as orthodontics. Most policies also will not cover prescription drugs or other health care costs that are paid for out-of-pocket. If you need such services, the policy may pay a portion of the costs.