Life Insurance For Seniors

Life insurance is meant to help support the spouse and any children once income has disappeared after death. It is a way to pay for funeral costs, pay off debt and the lack of income can decrease the spouses standard of living. There are many types of insurances, many of which can be cashed out when you retire. New insurances can then be purchased, even by seniors but usually have a higher premium. These are often short-term policies that only pay a limited death benefit in he first 2 years of holding the policy and tend not to offer to help pay for any long-term care such as in a nursing home or an assisted living facility. Typically these policies cover a pay out of $5,000 to $100,000, depending on how much premium is paid per month. Senior citizens can also purchase accidental death policies, which are usually paid in full as soon as the first monthly payment has been received. This is the one exception with a deferred life insurance policy for individuals over the age of 63.

When taking out a policies most life insurance companies check the credit of the senior who is applying and use that information as a factor for the premium rates. Since older individuals are more likely to have good credit and a long history of responsibility, their insurance premiums may have more positive results than they anticipate. Younger people may look at a whole life or universal life policy to provide a death benefit and also cash value as a savings vehicle while seniors may be more apt to purchase the term life policy. These policies have monthly premiums that are lower and they provide the death benefits needed. Insurance companies also look at the applicants’ life, hobbies, health, health history, family history, age, sex, height, weight and even driving records. Because seniors are older and closer to death, life insurance can be more expensive for them, and they may not even qualify at all for standard term life insurance policies. With a little bit of investigation and research, most seniors are able to find a life insurance policy that will meet their needs for which they will qualify for and won’t break the bank.