Life Insurance for Seniors
Senior life insurance, also known as funeral or burial insurance, is used to cover funeral costs and other final expenses when you die; however, it may not be necessary for you.
Senior Life Insurance
As you become older, your needs for life insurance change. Generally, by this time in your life, your children are grown and having families of their own, you're carrying less debt, and either in or getting ready to enjoy your retirement years. The fact is, the type of coverage and the policy amount you need at age 35 can be very different than when you reach milestone ages of 50, 60, 70, and older.
What is senior life insurance?
Senior life insurance (also known as burial or final expense insurance) is purchased by older Americans to cover funeral costs, as well as other final expenses when they die. Both term and permanent life insurance policies are available for seniors. However, with a term policy, you may run into some age limitations. For example, an insurer may only offer you life insurance up to age 70. If you reach this cut-off age limit for a term policy, you may still be able to get a small permanent life insurance policy such as whole or universal life.
Policy benefit limits will vary between life insurance companies, but are generally lower than traditional policies. This is because they're meant to cover a specific purpose - your final expenses - not to replace your income. They typically range anywhere from a few thousand dollars to $25,000 or more, again, depending on what the insurer offers.
Qualifying for coverage
As with most life insurance plans, there is generally some form of underwriting in order to qualify you for coverage and to determine your premium. Senior life insurance is typically offered two ways - either simplified or guaranteed issue. What you need to know is that both of these policies will require that you complete some type of a medical questionnaire/application, even if you aren't required to have a medical exam. These no-exam life insurance policies typically have higher premiums than traditional policies that require a medical exam, simply because the additional risk the insurance company is taking on by offering you coverage based on the answers you provide on your application.
Life insurance is an excellent way for seniors to protect their families from becoming financially burdened with end of life expenses, providing financial protection and peace of mind for all ages. However, it may not be necessary if you:
- Have the available funds set aside for your final expenses
- You have long-term care insurance
- Have made pre-paid arrangements with a funeral home
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