Life Insurance For Seniors

Why do seniors still need life insurance?

Many senior citizens have been covered most of their lives through either term life insurance or a policy from their job. In many cases their term coverage has run out or they have little to no insurance left from their employer.

As they begin to consider their end of life expenses they find there is still a need for life insurance. Here are a few of the reasons seniors still need life insurance.

• Cover funeral expenses– No matter what age a person may pass away most people don’t want to leave the cost of a funeral on their loved ones.
• Support for a surviving spouse– Many find that any reduction in household income would present challenges for their spouse.
• Caring for grandchildren in the home– In this day and age there are many grandparents raising their grandkids. They want to be sure there is money left behind for their continued care.
• Leave an inheritance– Life insurance guarantees the next generation will receive the resources the need.
• Decreased savings and investments– Many seniors plan to leave their savings and investments as an inheritance however, due to market fluctuations and extra expenditures associated with aging many don’t have as much to leave behind as they initially planned.

How does life insurance for seniors work?

Generally speaking, life insurance for seniors is marketed as “final expense” or “burial insurance”. These are just marketing terms that refer to a small whole life policy used to take care of a funeral service and other end of life needs.

These policies range anywhere from $5,000 to $50,000 in coverage. Seniors prefer whole life coverage because they don’t have to worry about outliving the policy. The funds will be there when their family needs it most.

Is it difficult for seniors to qualify for life insurance?

A large percentage of seniors have developed some pre-existing conditions which makes them wonder if they still qualify for a life insurance policy.

Many insurance companies have special programs for people age 50 and older. These programs accept most health challenges and allow them to get the protection they need.

Here are 3 ways seniors can get approved for life insurance.

• Fully underwritten– This method of qualification generally requires answers to an extensive list of medical questions, a medical exam, prescription history, MIB(Medical Information Bureau) report, and in some cases 5 years or more of medical records. It can take up to 30 days or more to be approved if medical records are required. Those who are able to qualify this way receive the lowest rates but, many are denied coverage because of negative health history
• Simplified issue– This application has a shortened list of medical questions and covers a multitude of pre-existing conditions. These policies do not require a medical exam. Approval is generally instant but, if the underwriter needs additional information it may take an additional 3-7 days.
• Guaranteed issue– This policy will cover virtually anyone. The only exclusion with some carriers is hospice care. There are little to no health questions and there are no medical exam requirements. Since the company is so lenient there is a 2-year waiting period on all policies.

Can I buy life insurance for my parents?

Yes, you can! As your parents enter their golden years it’s a great idea to involve yourself in their end of life planning. Since you will most likely be the person handling their final arrangements you need to know what to expect.

If you find that your parents need coverage you can purchase a policy for them to protect yourself from being caught off guard. They will need to complete the application and any other underwriting requirements.

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