Whole Life Insurance for seniors, sometimes also known as permanent life, cover benefits no matter when the coverage holder dies since the coverage remains in effect throughout that person’s life. For many whole life policies, however, the premium and the death benefit to remain the same for as long as the life coverage is in effect. With this type of policy, the premium may increase over time as well as the death benefits.
Many seniors decide to purchase Insurance from their employers or through independent brokers. Regardless of the source, these people are required to complete a comprehensive medical questionnaire prior to purchasing the Insurance. This Medical questionnaire is used to determine the best Coverage options available for seniors based on their health history and current medical conditions. They are also asked about additional coverage options such as: “I’m currently overweight (weight greater than 200 pounds), do you smoke, do you have any other pre-existing conditions such as diabetes or high blood pressure”, “do you have any other illnesses not currently being treated”.
Most Whole Life Insurance policies offer a basic death benefit of either a one-time payment which can be suspended during the life of the Policy, or a cash value, which is invested in a trust account. Some policies pay a bonus amount to the survivors in the event of the Policy holder’s death within the Policy coverage period. These bonuses, or “premiums” as they are sometimes referred to, are designed to assist in covering the cost of the funeral, providing funds to cover medical bills, paying debts, or creating an estate for the surviving members. Premiums also can be paid periodically throughout the life of the Insurance policy to ensure the continued success of the Company. Additionally, in the event of your death, if the premiums are paid in full, the Policy will create a residual life insurance benefit, which is used for your funeral costs and other outstanding debt obligations.
As previously mentioned, there are many things that need to be considered when getting life insurance for seniors. First and foremost, you must decide what type of coverage you and your loved ones really need. Many carriers provide basic, accidental, and health benefits; while others provide more extensive coverage for these types of situations. Some carriers also offer lifetime coverage as well.
Next, you must determine how much coverage you will need. Will the purpose of your policy be to cover funeral costs only? If so, then you may want to reconsider getting life insurance for seniors aged sixty-five or older. The minimum coverage for this age group is usually around ten thousand dollars, although this amount can vary greatly from one carrier to the next. In addition, some carriers require that you wait a certain amount of time before you may begin receiving benefits; others allow you to start immediately.
The third thing that you must consider is your family’s situation. Do your loved ones have enough income to comfortably afford the monthly premiums for a whole life insurance policy? Many seniors carriers do not allow policyholders to leave behind their spouse and children. If you do have dependents, you may want to think about a policy that allows you to leave behind younger family members in order to receive higher premiums. If this is not possible, then it is probably best to just purchase a term policy, which offers lower rates.
Lastly, you must consider your overall health and wellbeing. If you are in good health, then you have the best options. Whole life insurance policies do not exclude coverage for preexisting conditions, nor do they charge higher premiums for this coverage. Seniors with existing health problems, however, may want to seriously consider purchasing a catastrophic health impairment policy, which could allow them to leave behind their dependents and take advantage of cheaper rates.
Choosing the right policy for your needs can be challenging. However, if you follow the tips above, you will be able to make the right choice for your loved ones. If you are still unsure as to which plan is the best choice, you should contact a respected, reputable insurance broker. With years of experience in the field, these brokers will be able to answer all of your questions regarding affordable, appropriate coverage for your situation. Before purchasing a policy, however, it is important that you take the time to consider your family’s situation, as well as your own, and only buy a policy when you are sure that you truly need it.