With senior life insurance, even the elderly can now get financial protection for themselves and their families. However, not many people take advantage of these plans due to misguided information. Most people think that once you hit 60, you don’t qualify for insurance anymore, but that’s not the case. Here’s what you need to know about the best life insurance for seniors over 60.
In this article:
- What Is Senior Life Insurance?
- Who Can Get a Senior Life Insurance Policy?
- Where Can I Apply for Senior Life Insurance?
- When Am I No Longer Qualified for a Senior Life Insurance Policy?
- Why Should I Get a Senior Life Insurance Policy?
What You Need to Know About Senior Life Insurance
What Is Senior Life Insurance?
Most senior life insurance plans cover your final expenses and allow owners to take out a loan against their policy’s cash value. At the same time, you can also accumulate cash value through dividends on a senior life insurance plan. Simply put, this plan basically has the same features as a whole life insurance policy given to someone younger.
The main difference between senior life insurance policies and regular policies are the benefits and riders. Most of the time, seniors do not qualify for insurance plans that cover illnesses. However, this also means that these plans are much more affordable since they only cover your final expenses.
Reminder: Just like any insurance plan, you can customize these policies to suit your needs. If you don’t want to pay extra for company dividends, then you can adjust your plan accordingly.
Who Can Get a Senior Life Insurance Policy?
While the eligibility of a candidate varies depending on the institution they choose, there are some universal rules observed by insurance providers. For example, no matter what company you choose, they will always assess your health to check your projected lifespan. Nonetheless, if you are in good health and have no medical issues from your past years, you’ll most likely qualify for life insurance.
Where Can I Apply for Senior Life Insurance?
Start by discussing this option with your preferred insurance company. They can connect you with an adviser so you can discuss whether the policy they offer is right for you. Most insurance companies want to make the process as easy as possible for the client. The adviser will be in charge of tedious paperwork or unnecessary tasks so you have less to worry about.
When selecting a senior life insurance policy and applying for it, take into consideration not just your needs, but the needs of your family as well. Let’s face it, the ones who benefit the most from your policy are the people you’ll leave behind. While it may be saddening, it’s a fact that we will someday part with our loved ones. When that happens, the best we can do is to remove any unnecessary strain that financial problems may bring.
When Am I No Longer Qualified for a Senior Life Insurance Policy?
Most companies do not insure seniors over the age of 85. They usually stop at around 70 or 80. However, keep in mind that this may change depending on the insurance plan you choose. If you’re applying for a plan that covers health, final expenses, and accumulates cash value, then you might have to be somewhere below 70 to qualify. On the other hand, someone who simply wants to take care of their burial expenses can qualify at an even later age.
Why Should I Get a Senior Life Insurance Policy?
Sadly, it may be a little too late to plan for your retirement when you’re over 60 years old. That’s why we always encourage our readers to start saving up as early as possible.
However, while building a retirement fund is out of the picture, there are still a couple of reasons to get a senior life insurance policy:
• Burial Insurance: The sad fact is that bills do not stop coming, even after death. The only difference this time is we won’t be the ones paying them, our loved ones will. Getting a senior life insurance plan ensures that your family won’t have to deal with the bills that accumulate at your time of death.
• Estate Planning: In addition to bills, taxes also don’t stop coming even when we’re six feet under the ground. They’ll come back to haunt your family and burden them. By getting a life insurance policy, you can increase the amount of cash you leave behind. This gives the family enough funds to pay estate taxes, bills, miscellaneous fees, and still have money to survive on without your financial support.
• Flexible: One great thing about senior life insurance is the fact that you can customize it specifically to suit your needs. Plus, you can make this plan more affordable by removing the benefits you don’t really need at this point in your life.
How important do you think it is to have a senior life insurance policy? Share your thoughts with us in the comments section below!