Life Insurance For Seniors
You are never too old to purchase life insurance. Today, many states require life insurance companies to provide coverage to those over the age of 63 and under 85. These guaranteed policies are often deferred life policies, and pay a limited death benefit for the first two years - typically the premiums paid plus interest unless the death is accidental in which case the full amount of the policy would be paid. After two years, the full value of the insurance payout benefit is made to your beneficiary at the time of your death. These guaranteed life insurance policies sometimes do not require a health exam, which makes them available to almost everyone.
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Deferred life insurance policies are whole life policies which can be structured for as little as $5,000 coverage and up to $100,000. The whole life insurance policy remains in effect for the life of the policy holder. Whole life insurance policy holders pay premiums according to the terms of the contract up to the value of the policy. After the terms of the whole life contract are met, any additional money paid extends the value of the policy, the principal earns interest, and the policy is considered an asset.
Regardless of age, seniors can find a plan that suits their needs. There are a wide variety of plans at a range of prices. In addition to whole life there are term policies. Term life insurance policies are distinguished from whole life insurance policies in that the term policy is in effect for a predetermined period of time, often twenty years. The premium for a term life insurance policy is typically much lower than the premium for a whole life policy. The premiums for term life are lower because term policies are not a value-adding asset and do not earn any interest. The only payout obtained from a term life insurance policy is upon the death of the policy holder.
Be aware senior citizens are sometimes victims of insurance marketing proposals by disreputable insurance agents who are more interested in selling a policy than what is best for their customer. There are many complex choices when it comes to selecting an insurance policy and doing so should be done with care and professional advice.
You have worked to accumulate you assets and protect your retirement. Because of this it is very important to protect yourself and your assets. It is essential you understand the benefits and limitation of the insurance policies and contracts you are considering to determine which policy best meets your needs.
Only work with a licensed professional broker. You can check with your state’s insurance commissioner to make sure the broker you are considering is licensed to sell the policies you are considering. Get all the proposals you are considering in writing. Never purchase a policy based on verbal promises or understandings. Take the time to carefully review the policy proposals before making a decision. Do not ever sign a document you have not read. It is advisable to have a family member, friend or financial advisor go over the written proposals with you. Always ask for full disclosure of any charges you will incur if you change or cancel a policy.
Some of the insurance companies we quote: