Important Things to Consider Before You Purchase Life Insurance for Seniors
Life insurance provides you and your loved ones with a number of benefits, and there are a wide range of policy options available to choose from. Some life insurance policies may be more beneficial for you than others, and because of this, there are a few important things to consider before you purchase life insurance coverage for seniors.
As a first step, you should estimate how much coverage you need. Keep in mind that you may need different types of coverage, so you may break down your coverage needs based on how the benefits will be used. For example, you may need a senior life insurance policy to pay off your mortgage so that your loved one can live in a home that is owned free and clear.
Perhaps you need burial insurance for seniors to pay for your final expenses so that your loved ones are not responsible for them. When you itemize what your insurance benefits will likely be used for, you will be able to purchase the right combination of policies for your needs.
While some seniors see the benefits associated with purchasing coverage, others believe that life insurance is no longer needed in their older years. For example, their mortgage may be paid off, and they may have sufficient assets to support a surviving spouse.
However, it is important to note that there are several reasons why you may want to get senior life insurance quotes and purchase a policy today.
Why You May Need a Senior Life Insurance Policy
Regardless of whether you have personal debts paid off or not, all seniors will have final expenses upon their death, and these are expenses that are passed on to surviving family members. The typical cost of a funeral is approximately $10,000 in the Unites. This is typically money that the family members will need to come up with very soon after the insured passes away. This financial burden can be considerable, and it comes at a time when they will be mourning your loss.
Final expense life insurance is designed to provide them with a quick source of funds that are sufficient to pay for most or all of these expenses. These are funds that do not have to go through probate, so they will be immediately available. A variation of this is burial insurance for seniors, which will provide funds for the burial costs without all of the final expenses.
Another reason why seniors may purchase a life insurance policy is to pay for estate taxes. If you have determined that your estate will be taxed, you may be interested in protecting your legacy and passing it on to your heirs without having it heavily taxes. Keep in mind that estate taxes may take up to half of the value of the estate in some cases. When you want to ensure that your estate remains in your family’s possession, you can purchase cheap life insurance seniors that will be used to pay estate taxes.
Many seniors have income streams that will not be passed on to their survivors who may be dependent on them. If you are concerned about the welfare of your spouse or other dependents after you pass away, life insurance for seniors is a great idea. This can prevent your spouse from having to endure a significant and likely unpleasant lifestyle change when you pass away. For example, some pension plans will either not pay all of the proceeds to a surviving spouse or will not pay the full proceeds to him or her. Cheap life insurance for seniors can be used to replace the income stream that is lost.
Some seniors would like to make a donation to a charity or organization that supports a cause that is important to them, but they lack the financial means to do so. With a senior life insurance policy that has the charity named as the beneficiary, you can make a gift to the charity after your death. This is often a considerably larger gift than you would be able to donate through your own assets.
There are other common reasons for purchasing life insurance for seniors as well, such as paying off debts that may otherwise be passed on to loved ones. This may include a mortgage or other debts. With this strategy in place, the monthly expenses that the loved one is responsible for can decrease, and this means that the surviving spouse can maintain a quality of life with less monthly income required.
Common Types of Life Insurance Seniors Buy
There are several common types of life insurance policies that seniors purchase, and these include permanent policies as well as term policies that extend for up to 20 years or more. A whole life insurance policy, which may also include a variable life, an indexed universal life or a whole life policy, can accrue cash value. This cash value is a form of savings account for seniors, and it can be counted as a financial asset.
With many types of life insurance for seniors, the applicant will need to be approved for coverage. This means that a lengthy application regarding the applicant’s medical history, lifestyle and more will need to be completed, and the individual will need to complete a medical exam or physical. This exam typically includes a blood pressure reading, a heart rate check, a urine test and a blood test. The applicant may be denied coverage if it if determined that he or she has health conditions that could make him or her risky to insure. In other cases, the individual may be approved for coverage but may receive a higher rate.
There are many reasons why seniors of different ages get certain policies. We will help you understand the reasons why seniors of different age groups purchase different types of policies and face amounts.
The different age groups are:
- Life Insurance over 50 years old
- Life insurance over 60 years old
- Life insurance over 70 years old
- Life insurance over 80 years old
The Option of Guaranteed Issue Life Insurance
Because most seniors will benefit from a life insurance policy but not all will qualify, many will be looking for an alternative. Guaranteed issue life insurance is a type of life insurance for seniors that is available to all seniors without the need for a health history or medical exam. While the premium will be higher that alternatives, it may be the only option available to some seniors who need coverage.
Comparing Coverage Options
While there are many types of life insurance for seniors available to choose from, not all policies are suitable for all individuals’ needs. Some people do not even attempt to purchase coverage because they believe that their premium would be too high or that their health status would make them ineligible, but you can see that there are policy options that are suitable for most needs.
As a first step, you should consider if you believe you would qualify for a plan with a medical exam requirement. There is no harm associated with applying, and this could provide you with the best rate possible on the coverage you need. If you do get denied, however, you can consider applying for a guaranteed issue life insurance policy. You should also consider getting quotes from different companies that offer the same type of coverage. The rates, features and benefits associated with similar plans from different providers may mean that one policy is more advantageous for you than others.
One of the best ways for you to gather quotes is to contact a life insurance broker or agent for assistance. A life insurance broker can help you to define your coverage needs and preferred coverage amounts. In addition, you can easily get personalized information about the different types of coverage from your broker. Once your broker understands your life insurance needs, he or she can begin requesting quotes on your behalf. This is a fast and easy way to get quotes and to find the coverage that is right for you.
Keep in mind that you may benefit from using multiple types of policies for various needs. For example, life insurance for seniors may be used to pay estate taxes while final expense life insurance benefits can be used to pay for your funeral and other aspects of your burial. Once you determine what type of coverage you want and how much coverage you want to purchase, you can easily use online life insurance applications to request the precise coverage that would benefit you.
Where to Request Life Insurance Quotes for Seniors
If you have decided that you want to shop around for quotes for life insurance policies for seniors, now is a great time to get started. Death is an inevitable future for everyone, and the only question is when this event will occur. Because of this, it is important to purchase coverage that will protect your estate and that will meet other financial needs as soon as possible.
One of the best steps that you can take to learn more about your coverage options and to gather your quotes quickly and easily is to use the online application form on the website. This form is designed to take only a few minutes to complete, and by doing so, you may easily learn about the coverage options that you qualify for.