Finding someone who will partner with you to help you make the best decision always seems to be a difficult task. Having been through the process of setting up my own parents with Medicare and life insurance policies I realized that people have a really tough time as they make the transition into being a senior. This is why we set up Life Insurance for Seniors 360. To give you a trusted source where you can get great information and talk to a person who specializes in getting the best rates on life insurance policies. Every person that works with us knows that seniors have specific needs because their stage of life is different than someone who is 30 years old and has a small child. We work with senior citizens to figure out what their life insurance needs are and what policy will fit their budget best.
Why are Senior Citizens Getting Life Insurance?
It would seem that people who are in their senior years would be less likely to get life insurance, but we have seen an increase in seniors making life insurance a part of their financial planning. The main reason is to create security. If you work hard your whole life you do not want one unfortunate incident to put that hard work and wealth in jeopardy.
The other reason we see is to make sure there is enough money to take care of funeral expenses and to pay off any debt that may still be lingering. This makes sure that your heirs do not have to fuss with a complicated execution of your estate but can focus on grieving and can be blessed by the memories and wealth that have been left.
Finding the Right Life Insurance Plan
The key to finding the right policy for anybody is three fold:
- Know Your Needs – If you do not know what your financial needs are then you are bound to get a policy that does not really fit you. When you work with one of our agents they will ask the questions that are necessary to make sure you get a plan that matches those needs.
- Know Your Budget – Sometimes we need more than what we can afford. Knowing exactly how much you can afford to spend on life insurance ahead of time will shorten the process of finding the right policy.
- Know the Companies – We take care of this one for you. Life insurance for senior citizens is somewhat of a niche market place. Some companies do not want people who are advanced in age and have no idea how to evaluate them for life insurance. We work with over 60 companies that meet the needs of seniors who are in very different personal situations. Once we learn your needs and budget we can help you find the company that will look most favorably on your situation.
If you came looking to grab even more info we took the time to help you understand some of the most common types of life insurance.
What Types of Seniors Life insurance are Available?
Life insurance comes in all sorts of shapes and sizes. This does not change when you become a senior citizen. It is important to note that your needs for life insurance are probably very different than when you were 30. Keep that in mind as we look at the most common types of life insurance that we see senior citizens acquiring.
With their lower premiums, term policies are a very common form of life insurance. They do tend to be a policy that younger people will get but if you are under the age of 65 then these policies can be very useful. The biggest advantage to a term life policy is that you can typically get the greatest amount of coverage for the lowest monthly premiums. This gives you great power in getting a large amount of life insurance for not so much out of your pocket each month. With people frequently starting families in their late 20’s and early 30’s the number of senior term life insurance policies that we have helped people acquire is on the rise. With this in mind some of the people who might get a policy include:
- People with mortgages – If you still owe a significant amount on your house then a term life policy can give you the needed coverage to make sure if something happens to an income earner in your family that the other family members can pay off the mortgage and not have to worry about moving due to the monthly cost of that mortgage.
- Families with children going into college - It would be a bad situation if your spouse had to use the money you saved for the kids college because the monthly bills had to be paid or if because of losing one spouses income your kids could not afford to go to college. Needing that large lump sum makes a senior term life insurance policy a great option.
- People who need some flexibility – Term policies are only for a specified period of time. So if you only need life insurance until you hit 70 then you can set up a policy that will take you until age 70 and then it expires.
For all of the advantage of senior term life insurance there are several disadvantages to consider before getting one of these policies. The disadvantages are:
- A Focus on Health – the insurance companies tend to have a stronger focus on health with term life insurance policies. This is how they keep the senior life insurance rates low and are able to keep offering these policies. Unfortunately if you are not in good health you may have a more difficult time getting a term life policy.
- Age is an issue – there are a lot of insurers that will not offer term life insurance policies to anyone over age 80. Even AARP has their cut off for term life insurance at 80 years old. If you are in good health then we can help you find a senior term life insurance policy that can meet your needs but if you have health problems and are over 80 then you might have to look at another type of life insurance (learn more about getting life insurance at be each age HERE).
- Underwriting can be a hassle – With age and health being a focus of these policies, the underwriting process can be time consuming. If we find that a term policy is the best for you, our specialists make it much easier for you to get a term policy but it is more extensive than some of the other policies available.
- The large coverage amounts – It is hard to find a term policy that is less than $50,000 of coverage. Many senior citizens do not need that much coverage. This means that other types of senior citizen life insurance with smaller face values and lower premiums are a better choice.
With the large coverage amounts needing term life insurance for seniors is really a matter of your personal needs and budget. While many seniors in their 60’s to 80’s choose to go a different route these policies have become increasingly popular.
Whole or Universal life insurance for seniors will remain in effect throughout that person’s lifetime. While the premiums tend to be significantly higher than term, the payouts can also be significantly higher. The policy does accrue a cash value, which allows for interest to be earned on that cash.
If you have a bit more to spend on a monthly premium then a whole or universal policy is a great option for any senior citizen. This is also one of the disadvantage of a universal or whole life policy. Other disadvantages include:
- You don’t have full control of your investments. The insurance company will invest the money that is in the cash value of your policy for you. This means that your returns are typically less than if you had invested the money on your own. If you are a skilled investor then you might have a better time with the smaller premiums of a term policy and then doing the investing on your own
- Along with having little control comes the need for someone to invest this money. When you have someone to invest for you there are going to be fees involved. So whole life insurance for seniors will have significant fees on the investment side that will eat away at your profits
- Because of how these policies are structured people who do get them tend to be younger when they take out the policy.
To be honest there are many senior citizens that do not need this type of policy. That is why it is so important to work with an agent who actually places your needs ahead of their commissions. When you work with our specialists you can be sure they are looking for the best policy for you not for their personal profit. At LifeInsuranceforSeniors360.com we only suggest policies that make sense for our clients.
No Exam Policies
There are several types of life insurance that do not require a medical exam. This is advantageous for anyone that does not want to go through a medical exam or who is taking out life insurance on their parents or grandparents. The most common types of no exam polices for seniors are:
Standard No Exam Policies
These policies work just like term or whole life insurance but instead of going through the exam you simply fill out a questionnaire that asks a series of health and wellness questions. You are required to fill out this questionnaire honestly, because if you don’t, they can revoke the policy or not pay out if you were to pass away.
The biggest advantage to one of these plans is speed. When you no longer have to take the time to get a medical exam the underwriting process goes MUCH faster. Whether a senior citizen chooses to go with a term or whole life insurance policy we see them get approved in less than half the time with a no medical exam life insurance policy
Guaranteed Issue life Insurance
A guaranteed policy does not have any medical exam and there is no questionnaire required. These policies have a limited amount of coverage and are fairly expensive. Seniors who are in goo d health will typically choose to not go with a guaranteed issue life insurance policy.
The people who will typically purchase a guaranteed acceptance policy are:
- People in poor health
- Older seniors who have been declined for other types of senior life insurance
- Someone looking to get life insurance on a parent who cannot get that parent to cooperate and get a medical exam
There are a few things you need to know before you decide on this policy. The first is that guaranteed life insurance policies for seniors typically have a waiting period of two years. This means that if the person being insured were to pass away their beneficiaries would not receive the full payout. Instead they would get the amount in premiums that have already been paid. Second, these policies can be much more expensive than the other polices for seniors that you see here.
Just like any other type of life insurance a guaranteed issue policy is an option that you need to keep in mind. If you are a senior citizen who has been rejected for other types of life insurance it may be the best option for your life insurance needs.
Burial insurance for seniors has become a very popular option for people looking to get life insurance on their parents. These policies are limited in scope and can be very affordable. They do require a health and wellness questionnaire but there is no exam. The best part of these policies is that they are not very strict. So minor to moderate health problems are not a factor into whether you can get coverage or not.
Many of the companies that sell senior burial insurance do not have a waiting period. This means if the policy is issued and the person being insured dies four days later the policy will still pay out. There are also varying amounts so you can make some adjustments in the amount of insurance you would like to get.
The downside to these policies is that they only have a limited amount of coverage. Since the purpose of a burial insurance policy is to cover funeral and burial expenses you cannot expect to get a very large face value. Even with this limitation many seniors find burial polices to be the cheapest and ultimately the best option for their needs.
While there are many different kinds of life insurance out there it is not something to fear. By working with an experienced agent you can insure that you are getting the absolute best policy for your needs.
The Life Insurance For Seniors 360 Difference
What makes our services better than other is that we specialize only in life insurance for senior citizens. This means that our specialists can talk to you, evaluate your needs, and match you with a policy that will meet those needs and be the most affordable. You can find someone that will walk you through this with a lot of agencies, but where we really shine is in our relationships with the senior life insurance companies themselves. You see, we work with senior citizens so much that we know which companies offer the best rates for each individual. Instead of having an agent that searches and searches through companies that have no chance of offering a policy to a senior citizen we help you by being laser focused on the few companies that will actually offer the best rates. Right now we work with over 60 companies that insure seniors all the time and can match you with the companies that look most favorably on your personal needs.
Finally by partnering with us you get someone that cares about your needs. Since we are an independent agent we do not work with any one insurance company. This means we are able to take your needs and match policy to you. When you work with an agent for a single life insurance company they take their policies and try to match you to the closest policy. Simply by being a Life Insurance for Seniors 365 customer you get the best life insurance experience possible. You can get started with personalized quotes by using the form on this page or giving us a call. We look forward to working with you to find the best insurance possible.