Life Insurance For Seniors
We specialize in getting insurance for those harder to insure (men and women).
Typical Life Insurance Amounts For Seniors:
It used to be that buying life insurance for an elderly person was next to impossible, well. the times have changed, and now getting a policy issued for seniors is not that difficult or expensive. See if you qualify!
- After your age, your health will be the determining factor for your qualification.
- Risk factors are also critical – do you smoke, drink heavily, are obese or overweight, have diabetes, etc.
- Do you take part in dangerous activities, like sky diving, scuba diving, race car driving, etc. Probably not, but you never know – some elderly folks are very adventurous.
Planning in Advance
Those who purchase life insurance early in life, have an easier time obtaining a policy during their senior years, plus it will be a lot cheaper and affordable. However, if you had a policy that expired, or coverage through an employer, and you choose not to maintain the policy after retirement, you will encounter some problems.
A life insurance policy won’t be as affordable for someone purchasing insurance at the age of sixty-five (65) or older, as opposed to a younger person . For example, a male non-smoker in the state of Delaware, 5’11 , 170 pounds will probably pay between $182.61 and $337.46 per month for $300,000 in coverage for a 15 year term life insurance policy.
Those premiums are a little high for an average senior citizen. Even, if the face value decreases to $100,000 the premium will vary from $66.68 to $121.93. These numbers are based on a non-smoker; those who are smokers are subject to pay a higher premium.
Getting an Early Start
It is a good idea to buy or start looking for level term life insurance protection early in life, preferably before reaching the age of forty (40), to avoid paying higher premiums when you become older. This is the time most insurance companies charge higher rates on policies.
For seniors this poses a major financial hardship, especially if they live on a fixed income. Therefore, certain organizations can help with expenses, such as AARP (American Association for Retired Persons), which offers several discount insurance policies for members.
How Much Coverage to Get?
How much coverage you should get depends on the reason you are getting coverage to begin with. Are you looking to have your final expenses covered (funeral, cemetery, church, etc.), in this case a low amount like $10,000 to $25,000 may be enough.
If you are looking to leave your heirs some tax-free money to pay estate taxes, your debts, or to leave them in good financial position, then a larger amount may be needed – $100,000, $250,000, $500,000, 1 million, etc.
What is The Best Life Insurance for Seniors?
Choosing the Correct Policy
The best option for seniors and the elderly with no coverage would be to buy a senior term life insurance policy. In general, most insurance companies don’t provide level term coverage to seniors for more than 15 years, therefore wouldn’t be worth considering whole life insurance or permanent life insurance.
Those who have not reached retirement age should take all these facts into good consideration, to avoid leaving their family with added expenses. Read your policy carefully and make sure you understand it well. Be certain that your family knows how to find the policy and what the coverage is. Also, if your parents (mom and dad) are elderly, it may be a good idea to obtain a parent life insurance policy on them to help with burial expenses.
What is a guaranteed issue life insurance policy?
This type of policy is guaranteed to be issued regardless of your current or past health. You can’t be declined coverage. The caveat is, that this type of life insurance offers a much lower death benefit and higher premium costs.