In 2020, only 54% of all Americans had some type of life insurance.
As we get older, the need for life insurance increases, as the chances of serious injury, illness, and death become more of a reality. So if you’re one of the Americans not covered, or your parents are, then it’s high time you get a good policy.
Don’t know where to start? Then read on for a quick guide to life insurance for senior citizens.
Types of Life Insurance
Before you select a policy, you should first understand the types of life insurance available. These are the basic ones you can choose from: term, whole life, and guaranteed issue.
Term Life Insurance
There are 3 types of term life insurance:
- Level: level premium and level death benefit
- Convertible: converts to permanent insurance after expiration
- Renewable: renewable every year (best for under 5 years)
Whichever you choose, it’ll be the cheapest option.
The healthier you are at the time of purchase, the cheaper it’ll be. On the other hand, the older you are, the tougher it’ll be to find a longer-term policy.
As the name suggests, you’ll get coverage for a short period (usually 10 to 30 years; 5-year increments). You’ll have a guaranteed premium amount during that time.
Whole Life Insurance
With whole life insurance, you’ll get coverage as soon as you buy the policy and it’ll last until you die. It gives you better peace of mind since it’ll payout for sure, so long as you keep paying the premiums.
As you might’ve guessed, this type of insurance is more expensive. This is especially true if you buy it later in life.
Guaranteed Issue Life Insurance
This is also called senior or final expense insurance. This is a good choice if you have health issues that either make life insurance more expensive or preclude you from qualifying for coverage, as you don’t need a medical exam to purchase a policy.
The caveat is that you usually need to wait 2 years before you can receive full benefits from the policy (this is the limited benefit period or the graded death benefit). This means if you die in the first 2 years of holding your policy, your loved ones won’t receive a full payout (the exception is if you die from an accident).
If you’d like to learn more, check out nomedicalexamquotes.com.
Funeral Insurance
You’ll also want to consider funeral insurance (pre-need insurance). This will cover the services needed to put you to rest.
Do note that this is different from burial insurance. Burial insurance pays out to your life insurance beneficiaries and they can use that money for anything, not just your funeral/burial.
Get the Right Life Insurance for Senior Citizens
Life insurance for senior citizens can seem like a headache to slog through. But it’s important to get adequate coverage so you don’t leave your loved ones in a financial bind. Speak to an insurance agent today to make sure you’re getting the best option!
Read the rest of our blog page for more health and wellness articles.