Regardless of whether young or old, it is essential to ensure that financial planning includes the protection of loved ones – and one of the best ways to do that is through life insurance. Today, more and more seniors are looking into protecting their income and assets with term life. This type of life insurance can offer a low cost way to cover a wide variety of different needs.
Why Seniors Still Need Life Insurance Coverage
Although many people think that the need for life insurance ends when income stops, nothing could be further from the truth. In fact, there are many reasons why seniors need the protection of life insurance coverage. Just some of these reasons may include:
- Income Replacement – One of the most important reasons why seniors need life insurance is income replacement. Oftentimes, pension or other retirement income may stop when one spouse dies. This could essentially leave the other spouse immediately destitute. By using the proceeds from a life insurance policy, the surviving spouse could recoup lost income, or even annuitize the proceeds into a continued lifetime income so as to maintain his or her lifestyle.
- Estate Taxes – Many seniors will also need life insurance to pay estate taxes. Unfortunately, many people are taxed on the value of their estate upon death. Having life insurance to pay this tax can help loved ones to avoid having to sell other assets and cherished family heirlooms in order to come up with the needed funds.
- Debt Payoff – Seniors may also need life insurance in order to pay off large debts. Gone are the days of seniors having their mortgage and other debts fully paid off. Having life insurance to pay off debt obligations can help to ease the financial burden from surviving loved ones.
- Charitable Contributions – There are many seniors who may also wish to donate to a charity through life insurance. In fact, life insurance proceeds can offer a great way to substantially increase the amount that one donates to a favorite organization.
- Final Expenses – Certainly everyone could use the help of life insurance when it comes to paying final expenses. Today, the average cost of a funeral is in the range of $10,000 – but this is just an average – and in many cases it can be double this amount.
How Term Life Insurance for Seniors Works
Overall, there are two primary types of life insurance. These are term and permanent. Term is the most basic form of life insurance coverage. With term life insurance, should the insured pass away while the life insurance policy is in force, a named beneficiary will receive a set amount of death benefit.
Term life insurance policies are purchased for a set number of years. These plans can last anywhere from one to 30 years. Once a term life insurance policy has expired, however, the insured will be required to re-qualify at his or her then-current age and health condition if they wish to continue being covered. Because of their increased age – and any possible health issues – the new premium will typically increase. There are also cases where the insured may not re-qualify for coverage.
Provided that an insured is in relatively good health, the premiums that are charged for term life insurance are usually very affordable. This is because these types of policies do not include any type of cash value or investment component.
What is the Best Type of Term Policy for Seniors?
When considering term life insurance, there are several different ways to go about purchasing coverage. For example, some policies will require that the applicant go through traditional underwriting. This typically means that an application must be filled out that asks questions about the applicant, as well as his or her medical history and condition.
Oftentimes, this will also require a medical exam. Such an exam usually consists of providing a blood and urine sample. These samples are examined by the insurance underwriters in order to detect any adverse health conditions that may present additional risk to the insurance company.
Another type of term life insurance to consider is final expense. With this type of coverage, the individual will usually purchase a smaller amount of death benefit, as the policy is typically purchased only for the purpose of paying funeral and other final expense costs.
There is also guaranteed issue term life insurance. With this type of coverage, the senior will not be required to undergo a medical exam. And, although the premium is usually higher than that of a traditionally underwritten policy, the senior is guaranteed to qualify for the coverage. These policies are usually obtained by those who have adverse health conditions and cannot obtain coverage elsewhere.
Applying for Term Life Insurance
Today, it is easy for seniors to find and compare affordable term life insurance coverage. Due to the ease and convenience of the Internet, quotes can be obtained quickly from top rated insurers on many good quality term life plans.
If you’re ready to shop for term life insurance coverage, we can help. We work with many highly ranked life insurance companies in the industry – and we can help you compare quotes on term life for seniors. You can start the process now by filling in the form on this page.
At LifeInsuranceforSeniors360.com we know that you may have questions or concerns. If so, please feel free to contact us, toll-free, at 888-229-7522. We’ll be happy to help walk you through the term life insurance quote comparison process and answer any other questions that you have in order to help you secure the term insurance coverage that you need.