Life insurance is a policy that is put in place for those we leave behind once we die. The final arrangements should be completed before that inevitable time comes. Choosing the right insurance policy for seniors presents a challenge. Seniors’ needs may vary, and policies may have difficult underwriting requirements. Considerations for choosing the right life insurance policy include a client’s age and life expectancy, health, debt, and dependents.
At American Senior Benefits, our agents work with respected insurance carriers to find the right coverage for our clients. So how do we choose the right plans for our clients?
Term life insurance is coverage for a specific duration. For term life insurance, a death benefit will only be paid if the insured passes during the defined policy term. Term life insurance premium rates will increase with age. Policies can be purchased for 10-year, 15-year, or 20-year terms. The rates and terms will vary depending on a client’s age and health risks – such as smoking. One way to determine the best term duration for a senior client is to check the social security life expectancy calculator. This tool is accessible online here.
Some insurance companies may require a physical exam. After age 70, some insurance companies may also require a cognitive function test. If your client is concerned about a physical exam, there are options that do not require physical exams, but this coverage will likely be less robust.
Whole life insurance policies are another option for seniors. A benefit of whole life insurance is that there are no limitations on the policy duration. The policy is purchased upfront, and the premium rates remain the same. Additionally, this policy accrues cash value. Whole life insurance is an uncommon option for seniors but can make sense for some situations, such as estate planning. However, whole life insurance policies may not be available after a certain age, often 70-years-old.
Universal life insurance can be explained as a combination of whole life insurance and term life insurance. Like term insurance, this policy does have a specific duration, but instead of setting a particular time period, the policy selects a specific age when the policy will terminate. Universal life insurance premiums are often less expensive than whole life premiums. Just like whole life policies, universal policies offer a cash value. Universal policies do require a health exam.
Aptly named, final expense insurance policies are available to seniors looking for coverage specifically for their final expenses. The underwriting for this policy is more lenient than other policies. This policy provides coverage for medical bills and funeral expenses.
The best life insurance for a senior client can be adapted to their specific needs. These needs may include premium costs, financial needs to cover final expenses, income needs, and debts. The agents at American Senior Benefits match the clients’ needs to the coverage options from respected carriers.
How do I Learn More?
To learn more about life insurance for seniors, contact the experts at American Senior Benefits, at (913) 815-3475. Our professionals will be happy to answer any questions you have.