Whole Life Insurance for Seniors

Life insurance is an important financial planning tool for those of any age. Proceeds from a life insurance policy can be used for paying off unpaid debts, as well as for replacing the lost income of a breadwinner.

Policies are typically purchased by both young and old alike. The amount of coverage, as well as the particular need, will oftentimes dictate the best type of life insurance coverage for one to purchase.

How Whole Life Insurance Works

There are two primary types of life insurance in the marketplace. These are term and permanent. Whole life is a type of permanent life insurance. This is the most basic form of permanent life insurance coverage. Whole life insurance policies will typically have premiums that remain level throughout the entire life of the contract.

whole life insurance for senior citizensWith this type of coverage, the policy holder will have both death benefit coverage, as well as a cash value, or savings, component. This aspect of the policy allows the policy holder to accumulate cash on a tax deferred basis, meaning that no taxes are due on the gain until the time that the funds are withdrawn.

Should the policy holder need the cash for any reason, he or she can withdraw or borrow the funds. It is important to note, however, that any unpaid balance that remains in the cash value component of a whole life policy will be subtracted from the policy’s death benefit that is paid out to the beneficiary.

Whole life insurance is oftentimes considered to be a great way of both covering a life insurance need, as well as accumulating wealth, due in large part to the cash value component of these policies. The cash value grows based on a fixed, guaranteed rate of interest. Oftentimes, policy dividends will also help to increase the cash value even more.

Should Seniors Purchase Whole Life Insurance?

Whole life insurance can be a very good option for seniors in terms of their life insurance planning needs. One reason for this is because this type of coverage never expires. Unlike a term life insurance policy that expires after the policy’s set number of years – or term – as long as the premium is paid, whole life will continue throughout the “whole of a person’s life.”

Because of this, it can be much easier for a senior to plan for various financial needs such as estate tax payment, business continuation, or final expenses, without the worry that his or her life insurance coverage will expire.

The Life Insurance Application Process

In applying for whole life insurance, seniors will typically need to go through the traditional application process – unless they are specifically applying for coverage such as guaranteed issue life. (Guaranteed issue life insurance will usually have a much higher premium than traditional forms of whole life insurance – although for those who have adverse health issues, this can be an ideal alternative).

The life insurance underwriters will typically want to know basic information such as the applicant’s age, gender, height, weight, smoking status, tobacco usage, alcohol usage, health history, and family health history.

If the applicant has any specific health condition such as diabetes, additional details will also be required. For example, questions such as the following will typically be asked:

  • When were you initially diagnosed with your condition?
  • What medications, if any, do you take for your condition?
  • What limitations, if any, do you have due to your condition?
  • What tests, if any, have you recently had performed due to your condition?
  • What surgeries or procedures, if any, have you recently had performed due to your condition?

The life insurance underwriters will also typically ask to review the applicant’s medical records, as well as require a medical exam. The medical exam usually entails the taking of a blood and urine sample which are analyzed for specific health conditions that may pose a risk to the insurance company. Depending upon the level of risk – if any – that the applicant poses to the life insurance company, a decision regarding coverage will be made upon review of all of the applicant’s information.

Where to Find Life Insurance for Seniors

Whole life insurance for seniors is offered by many of the top life insurers in the marketplace today. Yet, rather than going to each insurer individually to apply for coverage, it is much easier and efficient to work with a company that has access to numerous insurers at one time. This way, the application process time can be sped up exponentially.

How to Apply for Coverage

When ready to apply for whole life insurance for seniors, we can help to point you in the right direction. We work with numerous top rated insurers in the industry today, and we are familiar with which carriers work with seniors in the area of whole life insurance coverage.

Prior to purchasing a policy, it is typically best to compare the premium quotes from several life insurance carriers. In order to get the process of comparing life insurance quotes started, simply <Click Here>. In addition, should you have any additional questions regarding quotes about whole life insurance for seniors, please feel free to give us a call at <XXX-XXX-XXXX> and we will be happy to help.

Working with a company that is knowledgeable about whole life insurance for seniors – as well as with which insurers tend to focus on this area of the market – can essentially save you a great deal of time during the underwriting process, getting you the coverage that is needed much more quickly and conveniently.

Leave a reply