Life insurance for seniors can be a difficult to purchase depending on the health of the individual. There are a number of insurance options available to those in their later years, and at this stage the needs of the client are often very different from those in their younger years.
Firstly the number of financial dependants that the client may have is usually very low, unless they have a sick spouse or disabled dependant. They have often paid of mortgages and debts by this time, and so the amount of money required by the cover is often less than for other policies.
Burial or final expenses insurance is often available at this time, and this is there in order to cover funeral expenses and pay off any final debts. The amounts are usually between $3000 and $30000. These insurances are seen as whole life insurance and will not expire after a set time. They are usually available for people into their 70’s and 80’s.
Term insurance is also still available at this time, although premiums will become extremely expensive if the client has a lot of health issues, and in some cases they may be seen a uninsurable. This will also apply for renewals, and could cause problems if you took out a 10 term at age 70 and then were unable to renew at age 80 due to medical conditions.
Deferred life is another option that some companies offer. It is a policy whereby they will only pay a limited death benefit for the first two years. Before two years, most companies will pay the amount of your monthly payments plus interest. Although in the case of accidental death a full payment is given out.
There are a number of insurance companies that cater for older clients and many now that only cater for the elderly. These companies have specific underwriting in their policies to enable them to provide cover. It is worth reading this carefully and seeking advice from an independent financial advisor if necessary to ensure that the policy is the right one for you.
If you are in relatively good health then the cover may work out cheaper than you think. Nearly all life insurance providers will require a full medical examination prior to insuring. If you are not a smoker, have no long term illnesses or medical problems and have a good family medical history then cover might not be too expensive.
It is always a good idea to shop around before you sign up to any policy, but you need to be careful to ensure that you get one that is suitable for your needs. With varying prices it is easy to choose the cheapest option available; however this may not be the one that you need. You need to take the time to carefully read the underwriting on the policies, as it can vary from company to company. This is especially important for older persons as in order to produce low quotes, sometimes companies have to exclude conditions that would usually be in place.