Looking for affordable life insurance for seniors?
Since it’s something that many of us don’t want to talk about or even think about, oftentimes, we don’t get the necessary life insurance we need until our senior years.
It used to be that many insurance companies would refuse coverage to older people but the laws in many states have changed requiring insurance companies to provide guaranteed coverage to those over 63. Generally, the policies are shorter term and will pay a limited death benefit for the first two years.
Be sure to shop around for quotes and keep in mind that it is important to not only consider the type of policy (term or permanent if possible) but the purpose of insurance, whether it be for income or a death benefit.
There are several plans that do not require a medical exam like Gerber Life, Globe Life and Stonebridge Life but these policies are usually limited in their coverage for the first two years and have high premiums.
Term life insurance rates will depend upon several factors, including your age, gender, amount of coverage, type of policy, your health, your family's health history, and any medication tat you might be on.
Here are some tips to consider when buying senior life insurance:
• What are your needs?
There are several good online calculators that you can use to get a general idea of how much money your spouse and/or your children will need to cover their expenses until your children finish college and your spouse reaches retirement.
• What is the difference between a Term-life and Whole Life policy?
The only benefit that Term Life policies offer is death benefits that are payable to the beneficiary if you die during the “term” of the policy. When buying term life insurance for seniors, you choose the length of the policy, usually 1, 5, 10, 15 or 20 years and the price depends upon the length of the term you choose, the shorter the term the cheaper the policy. The term that the company will insure you for will depend upon your age since most companies will not insure you past the age of 85.
Whole life insurance for seniors, on the other hand, offers you not only death benefits but also a “savings account” meaning that if you live, you get back some of, and oftentimes more than, what you paid in premiums by cashing in the policy or by borrowing against it.
• Choosing the type of policy.
Term Life is the cheapest and simplest option for most people. It is a much more affordable option than whole life insurance since the only benefits that it pays will be if you die during the term of the policy. The old saying goes, “Buy term and invest the rest”.
Get quotes online. All it takes is a little of your time to go to websites like Accuquote.com, efinancial.com and LifeInsure.com and request quotes.
• Take care of yourself
If you smoke, quit. Shed those extra pounds and eat right to lower your cholesterol and blood pressure if they are high. All of these things can help to get you a better rate and may save you thousands of dollars over the life of the policy and help you to live a longer, happier life. If you have a health issue, it may be possible to save money even after you buy your premium if you improve your health. If you can establish a history of lowering your cholesterol, blood pressure or any other controllable rate increasing factor, many companies are willing to reevaluate your premiums if you ask.
• Pay Annually
Most companies offer you the options to pay monthly, quarterly, semi-annually or annually but they may also charge a fee for monthly billing. The general rule of thumb is the fewer payments you make over the course of the year, the less you’ll pay overall.
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