Life Insurance for Seniors

Life insurance is an insurance company's contract between a person (Insured) and an insurance company (Insurer). In general, upon the passing of the insured the insurance company will pay a lump sum to his/her beneficiaries - - for various reasons, such as leaving a legacy to loved ones (such as grandchildren), a gift to a favorite charity, making sure a family member will continue to receive the financial support that the insured was providing while alive or protecting against estate taxes for high-net-worth clients. Seniors might also look for the death benefit to be used in other ways, such as funeral expenses and outstanding debt, such as potential medical bills that accumulated due to a terminal illness. Below are the basics of the best life insurance policies for seniors:

Term Life Insurance:

  • Low cost.
  • Can choose the length of the policy term -- typically, up to 30 years.
  • Medical exam not required for simplified issue plans
  • Will cover the insured for the term he/she applied for, such as 10, 20, 30 years – when the policy term ends then no more coverage.
  • No cash-value component.

Whole Life Insurance:

  • Provides death benefit for the policyholder’s lifetime.
  • Most of these plans are designed so that the policy owners pays premiums for the life. Some plans allow insured to pay-up the insurance in 20 years or different number of years selected, but the good thing is that the death-benefit is guaranteed for insured’s whole life.
  • Higher premiums, but the death-benefit is be guaranteed for the life of the insured.
  • It can provide coverage for less than $100,000.
  • Accumulates cash value, but at a low rate of return.

Universal Life Insurance:

  • Premiums tend to be lower than premiums in a whole life policy.
  • Greater flexibility, due to cash value build-up component.
  • Ability to set lower premiums, but make sure you are paying enough into it so that coverage does not lapse.
  • Guaranteed cash value.
  • Guaranteed cash value.

No-Lapse Guarantee Life Insurance:

  • No Cash value build-up.
  • Most of these policies have gone away.
  • Will not have to pay premiums for life, as one can choose the number of years to pay premiums for – one can set it up to pay premiums for only 10 years or more.
  • Peace of mind, as death benefit is guaranteed for the life of the insured -- typical guaranteed to insured’s age of 110 or age 121, depends on the company.

Indexed Universal Life Insurance:

  • Builds cash value based on the performance of the stock market index that the returns are tied to. These crediting strategies usually have a floor and a cap as far as rate-of-return that you can earn – for example, a strategy can have a floor of 0% and a cap is 9%, and the participation rate may vary.
  • Family can receive larger benefit.
  • For those that prefer guarantees, some of these policies will allow you to add a No-Lapse-Guarantee Rider (NLG) to your policy, which will guarantee that your policy will not lapse to a specific age chosen on application by policy owner. Typical guaranteed to age is age 110 or age 121 – one can choose. Keep in mind that you will pay an extra cost for the NLG rider.

Final Expense Insurance:

  • Dedicated funds for final expenses, such as burial and related expenses.
  • These are smaller policies (typically for $10K to $50K).
  • Easy to qualify for – Medical exam may not be required for simplified issue plans
  • Affordable, as you can choose lower coverage amounts

A licensed agent can help you to compare the best plans for you and find you the most competitive quotes with some of the top-rated companies in the industry. We can help you to find the right insurance solution for your needs. If you are seeking a life insurance policy for a senior, call

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