Different Types Of No
You can purchase either term or permanent no-exam life insurance. As the names suggest, term insurance lasts only a certain amount of time, while permanent life provides coverage for your lifetime. With term life insurance, your policy has value only until the contract ends. Permanent life insurance policies increase in value indefinitely as long as you pay your monthly premium.
If you choose term life insurance, you can generally select a 10-, 20-, or 30-year policy. You can also consider subtypes of term life. With a convertible policy, you can increase your monthly premium in the future to transition from term to permanent life insurance. A decreasing term life policy offers premiums and coverage that go down over time to coordinate with a large debt such as a mortgage.
Whole life, a type of permanent life insurance, offers guaranteed cash value in exchange for higher premiums. Universal life is a flexible option that allows you to adjust your monthly payments if you need more or less coverage through the years. Indexed and variable universal life policies provide sophisticated investment options to grow the policy value.
Many life insurance policies have optional riders with add-on coverage for special needs. Examples include riders for child life insurance or disability benefits if you cannot work because of an injury or illness.
The Earlier You Find A Policy The Cheaper It Will Be
Theres no way to get around it: now that youre a senior, the cost of your life insurance is going to be far higher than it would have been had you have gotten coverage in your younger years.
However, dont use this as an excuse to leave yourself uncovered, as there are still going to be costs incurred as a result of your death that you need to plan for.
Insurance is far cheaper at this age than it is life insurance for seniors over 75, and the health issues you are likely going to be experiencing closer to the end of your life may mean that the costs of some insurance policies are prohibitive.
The differences in the cost of a particular policy over the course of a year can also increase drastically when youre a senior.
This means that for each year you wait to get coverage, the cost of any particular policy will increase substantially compared to the cost increase per year of a younger person.
If youve been thinking about purchasing a policy, it is definitely smarter to do it earlier rather than later.
With each year, you become closer to your life expectancy, hence the increase in your cost to insure. The bottom line is that now is the best time to acquire your coverage.
Why Seniors May Need Life Insurance
As people get older, their specific needs for life insurance coverage are usually very different from when they were younger.
However, many seniors have ongoing financial obligations that will last well into their golden years.
Some people have a current term policy ending and want to replace their expiring coverage with another term policy.
While other seniors are looking into buying a new policy that will last their entire lifetime.
Affordable Life USA has provided affordable coverage options for seniors for many years. We hope to match your underlying needs with the best type of policy for your family.
Everyday needs covered with life insurance:
These are only a few needs!
According to industry veteran Marvin Feldman, in his recent post in Life Happens, there may be over 20 reasons seniors should consider life insurance.
So, what is the best type of life insurance for seniors over 70?
If you are a senior citizen and people still depend on you financially, you might want to consider either term life or universal life insurance to protect your family.
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What Is The Maximum Term A Senior Can Choose For A Term Life Insurance Policy
If you are 60-years or over and contemplating term insurance, coverage is available to you up to your age of 85. Said differently, depending on your age, your choices are usually limited to 10-year, 20-year, or 25-year terms. As mentioned above, most insurance companies do not issue term policies to seniors once they cross the age of 75. For those above the age of 75, permanent coverage, such as term-100 or whole life coverage, is the only alternative.
Do I Need Life Insurance As A Senior
Ideally, by the age of 60, you will have paid off most of your existing debts, have no dependents and have enough money to carry you through your retirement comfortably. Unfortunately, not everyone fits into this idyllic scenario.
If you are over the age of 60, and any of the following apply to you it may be a good idea to consider life insurance:
If you already have life insurance and are currently paying those premiums, you should look into possibly replacing your policy. As a senior, your premiums may have drastically increased or you may be set up with a policy that no longer suits your need.
ContactProtect Your Wealth today to learn more about senior policies that may better suit your needs.
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Advantages Of Having A Life Insurance Over 75
A life insurance policy can give you peace of mind. Knowing that your family will not have to struggle money-wise after youve passed away offers relief.
The biggest benefit of having life insurance coverage is the fact that your family will have a financial cushion upon your death. The proceeds can even be used to cover funeral expenses and even pay off hospital charges or medical-related fees .
But if you break down the variables of a life insurance policy, itâs evident that it becomes easier to plan your familyâs financial future.
Best Guaranteed Acceptance Whole Life Insurance For Seniors
If youre unable to qualify for a fully underwritten or simplified issue life insurance policy but still need coverage, guaranteed acceptance whole life insurance is always an option. Just keep in mind that these policies come with a waiting period, or graded benefit, meaning your beneficiaries wont receive the full death benefit if you die soon after purchasing. Typically, your beneficiaries will just receive the sum of premiums paid plus interest.
While all guaranteed acceptance whole life insurance policies are relatively expensive and limited in terms of coverage options, some have particularly restrictive terms and high quotes. Weve researched insurers to find the best guaranteed issue life insurance options for seniors.
Mutual of Omaha also offers competitive rates for guaranteed issue whole life insurance, as well as a wider range of death benefits. You can purchase as little as $2,000 in coverage, with a maximum of $25,000. Mutual of Omahas waiting period is also two years, but beneficiaries would receive 20% interest on top of premiums paid during that time.
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The Best Life Insurance Policies For Seniors In Canada
The best type of life insurance policy for seniors will depend on coverage priorities.
We typically recommend that you start the process by applying for a term life insurance policy, then try simplified issue as a second option and then try guaranteed issue as a final resort.
Hereâs a primer on the different types of life insurance for seniors, with information about when you might choose each policy.
Smoother Transition For Your Family Upon Your Death
The death of a family member is a traumatic experience. Emotional grief is one thing to handle, but what if the deceased left the family with a huge amount of debt? That makes the experience a lot more distressing.
Do you want to leave your family with student loan debt, medical debt, and leave them with nothing to pay for the funeral? Instead of an inheritance, they can be happy about, do you really want to leave your family with more problems?
Surely, you donât want that. And that is why you need a reliable life insurance policy. A life insurance policy that will cover you and your family financially in potentially an unstable economy.
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Case Study #: Married Couple With Health Problems Needing Burial Insurance Coverage
- Situation: Married couple over 75 with health problems on social security.
- Coverage Needed: Burial insurance to help with cremation and funeral costs.
- Result: We helped them find $10,000 in coverage for $92 per month.
A husband and wife both had health issues and were living off their social security. They wanted a small life insurance policy to cover their burial expenses so they didnt burden each other or their family. The average cost of cremation is over $1000 , and that doesnt include other funeral expenses.
However, they were both over 75 years old and didnt think they could qualify for an affordable policy.
Being a former smoker, the husband had COPD and high blood pressure. As a result, he kept getting really high life insurance quotes that had a 2-year waiting period before benefits started. We helped him secure $5,000 in coverage with an Aetna burial insurance policy for $50 per month.
The wife was in remission for breast cancer for 10 years and had type 2 diabetes. We were able to secure a $5,000 policy with Prosperity Life for $42 per month.
For the couple, payments would come out the day their social security deposits were made so the policy would never lapse. Many final expense life insurance companies will draft on the social security deposit dates, have a low amount of coverage, and can take higher risk applicants.
Best Life Insurance For 80
At this age, it is more difficult to acquire ideal amounts of coverage at an affordable price due to the higher risk associated with individuals at this age. This means you will have less selection to choose from when deciding on a policy. That being said, attaining affordable rates at this age is still possible.
Seniors over the age of 80 are not eligible for term life insurance policies over 10 years due to the applicable age requirements. Term life insurance in general is not usually recommended to seniors at this stage of life due to the insanely high premiums associated with the age.
A permanent policy is ideal for seniors above the age of 80 because there are more options available. It also eliminates the risk of needing to find affordable insurance in your nineties by providing lifelong coverage. A key consideration is your health condition, and we have recommended the best type of life insurance for each tier:
- Healthy, no serious medical issues
- Guaranteed universal life insurance which offers coverage up to age 120, and are able to provide hundreds of thousands of dollars in death benefits.
Anico Signature Guaranteed Universal Life Insurance
ANICO Signature Guaranteed Universal Life Insurance can be purchased up to age 80. The Signature Plus Indexed Universal Life policy can be purchased up until age 85.
Since the minimum face amount is $25,000, this could be a great alternative to a simplified issue whole life policy and much cheaper life insurance.
Some of the unique riders to take a look at are:
- Guaranteed Cash-Out Rider
- Disability Waiver of Stipulated Premium
- Childrens term rider
- Overloan Protection Benefit Rider
- ANICO Signature Term Rider for UL
Contact The Insurance Carrier
Now that youâve chosen the perfect carrier with the perfect policy, itâs time to make contact.
Itâs important to know how to get in touch with your preferred carrier. Keep in mind that some insurance companies only allow contact through an agent.
Itâs also a good idea to talk to the agent first before signing a contract. An agent can help you get the best deal for your circumstances.
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Universal Life Insurance For Seniors Over 70 Or 75
Universal life insurance is a mix of whole and term life insurance. Its permanent with a guaranteed death benefit, but it has low monthly premiums, and it usually requires a health test. You may be able to update your policy rather than purchase a new one if your needs change, and some providers offer refunds for your premium payments after youve held the policy for a certain amount of years.
The cost of universal life insurance that requires a health test is lower than other UL products, such as guaranteed. However, its rates arent as low as final expense plans, which dont require a health exam. Because of the complexities of universal life insurance, its best to talk to your life insurance agent for a quote.
Total Cash Value Builds Up Over Time
In case you need an emergency source of money, thereâs the cash value of your life insurance policy.
Cash value is the investment part of a life insurance policy. It is the portion of the policy that earns interest. You can withdraw or borrow your policyâs cash value in case of an emergency.
However, not all types of life insurance policies have a cash value feature. The following types may have the feature, depending on the carrier.
- Whole life insurance
- Indexed universal life insurance
- Variable universal life insurance
Cash value works this way. Every time you pay your premiums, a portion of that goes into getting your life insured.
The other portion goes toward building up your cash value. The cash value often accumulates tax-deferred interest.
How much interest your cash value earns depends on the type of life insurance you choose to buy.
There are four major ways to access the cash value of your life insurance policy.
Withdrawing Cash Value
Tax-free withdrawals can be made from your policy. However, if you withdraw more than the amount in the cash value portion of your policy, it will be considered income and will be taxed.
Keep in mind also that withdrawing your cash value funds decreases the face value of the policy. It reduces the death benefit your family will receive if you pass away.
Using Cash Value to Pay Premiums
Just keep in mind that exhausting your cash value completely can cause a lapse in your policy. You may lose your coverage entirely.
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Simplified Vs Guaranteed Issue Life Insurance
While the majority of popular term life insurance plans require a health exam, there are generally two types of whole life insurance that offer the possibility to avoid medical exams: simplified and guaranteed. Simplified issue plans are often reserved for younger, healthy individuals. That said, many providers extend simplified issue plans to seniors as well. Rather than taking a medical exam, you may need to answer a few simple health questions to meet the requirements and qualify.
Alternatively, a guaranteed issue plan is best for those who have either been rejected for simplified issue plans or have preexisting health issues that may exclude them from other types of life insurance. Guaranteed issue plans still have age requirements, but they have absolutely no health exams or health requirements in order to qualify. Guaranteed issue plans tend to be more expensive and put greater limitations on death benefits.
For this reason, final expense insurance often falls under the umbrella of guaranteed issue plans. These policies have relatively small death benefits to pay for funeral and burial costs. Additionally, many providers do not require any health exams as long as you are currently within the required age bracket to apply.
Which Type Of Life Insurance Is Best For You
It is tricky to recommend a particular policy for an individual, as the options predominately depend on your age, requirements, health issues, and financial conditions.
Whole life insurance and funeral expense insurance work best for individuals over 80.
It has minimal to no risk and provides you a significant benefit to pay for end-of-life expenses. Your beneficiary can even use this money for their other needs or debts.
Lastly, universal life insurance is best if you only aim to save your money and want to double it without taking the risk.
Furthermore, you must have other resources to manage your medical and accelerating end-of-life costs.
As it doesnât guarantee you a steady death benefit, there are chances that your beneficiaries might not get enough money to pay for expenses.
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How Much Coverage Do You Need
The next step in buying a life insurance policy is determining how much coverage do you need. This depends from person to person.
A few factors to consider are:
- Your familyâs financial situation
Using your income, can you pay your expenses? Do you have outstanding debts? How do you plan on paying your debts? At the rate at which you are paying your debts, how long before you have your debt fully paid?
You should buy a policy that covers you for as long as you have debt. Just in case you pass before the debt is fully paid.
Whatâs your familyâs financial situation? Do your survivors need a lot of financial help after youâre gone? Or do you only need to worry about your final expenses?
All of these questions can help you determine how much coverage youâll need.
Is Life Insurance For Seniors Over 80 Available
Purchasing a life insurance policy at age 80 can be a challenging task.
This is because most insurance firms offer life insurance for people below the age of 80. Moreover, plans like term life insurance have a maximum age limit of 80.
This doesnât mean that you canât find life insurance for parents over 80. Itâs just that you will have limited choices of insurance companies and insurance plans.
For this reason, the insurance providers and agents recommend adults over 80 purchase whole life insurance or final expense insurance.
This is because it offers you incredible benefits at a much affordable cost and is easily available for older adults.
In addition to that, you can find some companies that also offer the best term life insurance, universal life insurance, and others to people over 80.
But of course, again, some of these plans require the applicant to have an excellent health condition.
When choosing the plan, make sure to consider your financial condition, as you have to pay premiums.
Also, since, at this age, you want a policy that gives you peace of mind, look for the possible risks and drawbacks before purchasing insurance.
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