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There are people who live long enough to obtain the title of senior citizen and do not have a life insurance policy. Many come to the realization they do not want their family to experience financial hardship after they're gone, and don't know if they are too old to get a life insurance policy. They good news is they can still get life insurance but as with all types of insurance, it's best to know as much as possible about it before making a decision.

The need for life insurance for seniors will only increase in the future. People aged 65 and older is expected to be about 71 million people. This will make senior citizens approximately 20 percent of the population in the United States by the year 2030.

Types of insurance policies to be considered by seniors
    •    Final Expense Insurance Policy
    •    Guaranteed Coverage
    •    Term Insurance
    •    Estate Transfer

Final Expenses Insurance policy This type of insurance is designed to cover burial expenses and pay off a certain level of debts. With some policies this amount is up to $30,000. This type of policy is designed to be a Whole Life Policy. This means it doesn't end as long as the premiums are paid. These policies can be issued without a medical examination. People can obtain such insurance in their late 70 and even 80s.

Guaranteed Coverage These type of life insurance policies are designed for seniors who have been denied coverage for some type of health issue. One feature of these policies is that they have a two-year restricted benefit period. During the restricted benefit period the senior will only get a payout if their death is accidental. If death is the result of an illness the company gives back the premiums and interest.

Term Insurance This insurance policy will expire once the term of this policy has lapsed, even if a person has made all their premium payments. Seniors up to the age of 90 have been able to get these policies, but acceptance is based on sex, health, age, driving record, etc. A senior with poor health may not be able to get term insurance. If the term expires and a senior is in worse health than when they took out the policy, they may not be able to get another term insurance policy.
Estate Transfer This type of life insurance policy is designed so accumulated insurance policies can be paid tax free. This is a common tool used by seniors so they can transfer any wealth in their estate to their designated heirs upon death.

Disclosure It is important that any senior citizen considering taking out a life insurance policy demand the issuing company provide full disclosure. Seniors need to be aware of any and all information pertaining to the policies benefits, as well as any negative situations that could result. Many insurance companies will often hide fees associated with canceling or changing an existing policy. This type of information is important for any senior to know before making a decision.

A senior citizen probably won't need the same amount of life insurance as a younger person. The main reason to have such insurance policy is to make certain that loved ones will be able to avoid any financial hardships resulting from the loss of the senior citizen's income. The benefit to a senior citizen is that by the time they reach this age their children are usually grown and on their own, so providing for them is not a big concern. It's still good to know that a senior citizen who has decided they want a life insurance policy, continues to have a variety of options from which to choose.

Get a Life Insurance Quote here

Posted 3:25 PM

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