Why Seniors Need Life Insurance Policies
Senior citizens are already very fragile and are awaiting the end of their lives. The benefits of seniors including social security and pensions will pay only so much which leaves their spouses and children to assume the balance. This is why a senior citizen still needs to get insurance. Life insurance cannot be taken from debtors and taxes cannot be levied upon inheritances in most states.
There are insurance companies that make seniors take a medical exam but there are others that do not. One policy that does not need a medical exam is a whole life policy. The whole life policy has a large upfront payment but the senior is protected up to 120 years old depending on the insurer.
IF a senior has life insurance, he will have great peace of mind when he considers his outstanding debts and funeral costs. This way, the surviving family will not be burdened with these expenses and other potential costs. These other costs may include estate taxes, back taxes, and others.
Senior life insurance is a type of insurance that is just for senior citizens. These policies are tailored specifically for the needs of senior citizens and they are available in whole and term life types. Many insurers also have what is known as the final expense insurance which is attached to the whole or term life policy and provides extra benefits such as burial costs.
If you score high on a medical exam, some insurers will give you affordable rates and high benefit amounts. Some insurers simply ask questions with requiring a medical exam. An insurer that does not require any medical exam or does not even ask health questions usually have lower coverage and higher premiums.
A variation of permanent life insurance which does not require medical exam is the guaranteed acceptance life insurance. In this type of insurance, the full benefits will be disbursed if the insured dies within the first two years from an accident. Only limited benefits will be disbursed to the beneficiaries of a policy holder who dies, within the first two years, due to natural causes. It is only the amount of premiums that the policy holder has paid and its interest that will be disbursed. After two years has lapsed, the senior becomes fully insured against both natural and accidental death.
Term life insurance is for seniors who have fixed income and cannot afford a high priced insurance policy. These seniors who go for term life are willing to forego the cash value investment options that whole and universal life offers. This is no longer needed at this stage of life.
A whole life policy should be considered by a senior who worry about outliving a term life policy. Fully paid premiums will be in effect until death.