LIFE INSURANCE FOR SENIORS

It’s never too late to plan for your future.  Even in your senior years, you can still make sure that your spouse and the family that you will be leaving behind will not be left handling your debts and continuing to live without your financial support.  Life insurance for seniors protects your family from getting into financial trouble and may help them continue to earn income even after you are gone. 

Contrary to popular belief that you can only get insured during your prime, insurance companies are now making available life insurance that are especially designed for the needs of seniors and elderly.  Life insurance policies for seniors are customized to fit the unique needs of seniors and can include provision of funds to cover for legal, medical, and funeral expenses in your passing.  Life insurance for seniors also helps your family get by during your loss until the time that they can financially stand on their own.

Benefits of life insurance for seniors

Aside from the continuation of income, having life insurance for seniors has numerous benefits as shown below:

  • Your loss will definitely cause financial stress on the family that you will leave behind.  Life insurance for seniors can help cover the immediate expenses of your death and help pay off any of the debts that you have left that you do not want to be covered by your spouse’s retirement savings or your family’s estate.
  • Social security and other similar programs do not offer benefits for immediate expenses and life insurance for seniors helps bridge this gap and provides the financial assistance that your family needs while waiting for your social security benefits to come in.
  • Investing in a life insurance for seniors will give you peace of mind knowing that you were able to provide financial security for your spouse and your family after your unexpected demise.

Types of life insurance for seniors

Life insurance for seniors also takes into consideration your age, gender, and current health condition when determining your insurance premiums and coverage.  Life insurance for seniors is generally categorized into 2 types as shown below:

  • Whole life insurance policies are life insurance for seniors that pay out the sum mentioned in your insurance contract to the beneficiaries that you have identified after your death.  It is very common for whole life insurance to have an investment component included in the contract that is received on top of the insurance coverage.  The insurance premiums for this type of insurance are generally the same during the entire term of the policy.  This makes for a steady growth of cash value that you can opt to withdraw or loan out as you wish.
  • Term life insurance covers or insures you just for a specific term or period, unlike whole life insurance that covers you until your death.  This type of life insurance for seniors will help support your family financially in the event of your death within a certain period.  Term life insurance does not build equity like whole life insurance, but just pays out the sum agreed upon in the contract if your death falls within the pre-determined period in the policy.  Some insurance companies provide renewal options for term life insurance that may avail in case your term life insurance will end soon and you feel that you would still want continued coverage.

Understanding Life Insurance Rates

You have finally decided that you need life insurance; it is a worthwhile investment and your loved ones will appreciate its benefits. Once you begin shopping for the best policy you will notice that the cost of premiums vary right across the board. Yes premiums will vary depending on whether the policy is for whole life or term life insurance but even within these categories the prices differ. How will you know which one is right for you? The difference in prices will have you wondering what companies consider when fixing premiums.  

Firstly, the rate is determined by the length and value of your policy. If you select a policy for 30 years with a cash value of $100,000.00 the premium will be significantly lower than had you chosen the same cash value but for a term of 15 years.

Life insurance rates are also determined by risk analysis, meaning whether the policy holder falls within a standard class or a preferred class. Your age, health, weight, life expectancy, family’s medical history, gender and lifestyle are all used to determine which class an insurance company places you in and consequently what rates you will pay.

Age and life expectancy are determinants because they help the company analyse how many years of premium you will have to pay before they can viably pay you the death benefit you desire. Health, weight and life expectancy are also used to predict the likelihood of you dying during the term of your policy and how many years into the policy. Similarly, gender helps in weighing the risk because women tend to live longer than men and as a result, pay their insurance rates are lower.

If your family has a long history of serious illnesses which may be hereditary then you may find yourself paying higher insurance rates. This is because from a scientific perspective, you are genetically predisposed to being diagnosed with the same illnesses and dying from them. This makes you a bigger risk for insurance companies.

If your lifestyle puts you at risk of death you will also have higher life insurance rates. This is very evident in a comparison of rates offered to smokers and non-smokers. People with nicotine habits or other drug addictions are bound to end up paying more for coverage. Insurance companies also look at your driving record. The more traffic violations you have, especially drinking under the influence charges, the higher the risk that you may die in a motor vehicle accident.

Even with all these factors taken into consideration, when you look at life insurance rates online, there will still be some variety in prices amongst companies. The best advice is to shop around and even seek the advice of a professional when looking for life insurance coverage.

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