Types of Life Insurance For The Elderly

Depending on your needs, you can consider options such as guaranteed issue life insurance, term life, whole life, funeral insurance and so on.

Nowadays, older people are becoming more and more interested in life insurance, but it can be quite difficult for them to find the right option. Most often this is due to the fact that life insurance policies become more expensive with age, but now there are still a fairly large number of acceptable options. Many insurers and insurance companies continue to work even with older people who are not in excellent health.

However, before looking for the right option for you, you should check whether you really need life insurance. For example, if you have savings, an emergency fund, and no debts, then you probably shouldn't buy insurance. However, an insurance policy is a good option if you have an outstanding debt, want to cover your funeral expenses, support a relative with your income, want to give someone an inheritance, and so on.

5 Types of Life Insurance For The Elderly

So, if you understand that you need insurance, then it is important to choose the most suitable option for you. Below you can explore the main types of insurance available for seniors:

1.Term life

This type of insurance is suitable for those seniors that are in good health for their age and are ready to pass a medical exam. The advantage of term life insurance policy is that it is the cheapest and at the same time a good option for you. This option should be considered by those people who cover debts or support a spouse or relative with their income. It is also worth noting that between the ages of 60 and 70 you will be able to secure a 10 or 20 year term life policy. However, if you are 80 or older, getting term life coverage can be a challenge.

2. Guaranteed issue life insurance

This type of insurance is famous for the fact that it does not have any medical requirements. While many insurance companies require you to pass a medical exam, there are options for those people whose health is not so good to get it confirmed. Most often, such policies have a two-year waiting period until full benefits are available to you (which is above the limited benefit period). However, you should pay attention to the fact that coverage is usually small and does not exceed $100,000.

3. Whole life

This type of long time coverage is a great option for people who want to ensure long-term peace of mind as the death benefit will be paid out no matter when you die. So all of life creates monetary value by investing parts of your premiums in a savings account. Thus, you can withdraw cash or take out a loan at a cost.

You need to pay attention to the fact that this option is often more expensive, and the older you are, the more expensive it is.

4.Funeral insurance

This type of insurance is also called pre-needed insurance because it was created for burial coverage. You can purchase one from the funeral home to help cover the cost of the services you need. Also note that funeral insurance is not the same as burial insurance, as the latter pays a benefit in the case of death, which can then be used for any purpose.

5. Guaranteed universal life insurance

This type of insurance combines both term and permanent life insurance. Guaranteed insurance is similar to term coverage in that it expires after a certain amount of time. However, the difference is that instead of a number of years to cover, you will need to choose the age when it expires. Most often, guaranteed universal insurance requires a medical examination to qualify, and coverage is not assured. However, if you pay insurance premiums, you will receive a guaranteed benefit in the event of death.

What Is The Cost Of Life Insurance For Seniors?

As mentioned, finding cheap insurance can be difficult, especially when you consider the fact that the cost increases with age. Below you can explore the average cost of life insurance for seniors of different ages per month: