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Life Insurance Senior Citizens Article
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Types of Senior Citizen Life Insurance
from: Karlie BestlerLife insurance can serve many purposes. One of the primary purposes of life insurance is assuring that your loved ones will be able to survive without your income if you die. As a senior citizen, you probably won't need life insurance at the same level you had when you were younger. By age 65, your working years are probably behind you and your children are probably grown and self sufficient. Your life insurance needs have likely changed substantially unless you have a sick or disabled dependent.
There are many things to consider when evaluating your senior life insurance needs. If you already have a life insurance policy with rates that don't increase, you probably want to keep it. If you don't already have life insurance and have concluded that you want senior life insurance, there are several types of senior citizens life insurance from which to choose.
*Senior Citizen Term Life Insurance
Senior citizen term life insurance will expire even if you make all of your premium payments once the term of your senior citizen term life insurance policy has ended. The advantage of senior citizen term life insurance is that the premiums are lower than senior citizen whole life insurance. Although you can often get senior citizen term life insurance coverage until age 90, term life insurance for senior citizens is medically underwritten.
Premiums for term life insurance for senior citizens are based on age, health, gender, smoking status, and your driving record. If your health is poor, you may not qualify for senior term life insurance coverage or it could be quite expensive. Once your senior term life insurance policy expires, you'll be older and could be ill or disabled and may not be able to get a new senior citizen term life insurance policy.
*Senior Citizen Whole Life Insurance
Senior citizen whole life insurance is life insurance with an investment or "cash value" component. Senior citizen whole life insurance offers premiums that do not increase. Part of the senior citizen whole life insurance premium maintains the insurance policy, and the remainder is added to the cash value of the senior citizen whole life insurance policy.
The investment feature of a senior citizen whole life insurance policy accrues interest tax free until you withdraw it. Any withdrawal you make will typically be tax free up to the amount of premiums you have paid into the senior whole life insurance policy minus any prior dividends paid or previous withdrawals. Because of these features, senior citizen whole life insurance policies have higher premiums than senior citizen term life insurance.
*Burial or Final Expense Life Insurance
Burial insurance or final expense life insurance are frequently marketed to senior citizens. Burial or final expense life insurance policies are considered senior citizen whole life insurance, which means your senior citizen whole life insurance policy does not expire as long as you pay the premiums.
Burial insurance or final expense life insurance policies are issued without a medical examination. One option for seniors who can't pass a medical exam and qualify for term life insurance senior citizens can purchase burial insurance or final expense life insurance.
Burial insurance or final expense life insurance policies typically offer enough money to cover funeral and burial expenses and maybe pay off a few debts. Burial insurance or final expense life insurance premiums will not increase and policies are often available to seniors well into their 70s and 80s.
*Senior Citizen Guaranteed Life Insurance
Guaranteed life insurance for seniors makes sense if you have been denied life insurance for health reasons. Guaranteed life insurance policies feature a 2 year, graded, or limited benefit period. During this time, you only get a payout if your death is accidental. If you die from an illness, the company refunds your premium plus interest.
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