Most of the chat about life insurance, is for a term life insurance product. It is understandable because temporary coverage is usually more affordable for large amounts of death benefit. Why? Well, because of the very nature of term life insurance. It expires after a set amount of time, or a term. The company underwrites the policy and of course, only offers coverage to people that they believe will outlive whatever time period the insurance covers. So when you apply for a 20 year term policy, and the company issues your policy, they believe you will survive that period of time! Of course, that is good news, but is this really the security and benefit you are looking for? You may find yourself lacking any sort of coverage just when you need it the most!
If you find yourself without life insurance, just when you are middle aged or older, you can still find a policy. Senior life policies are intended to issued with very mild underwriting so most older people can qualify. Guaranteed life insurance policies can be issued to anybody, no matter what sort of health they are in. These are simply whole life insurance policies which are designed to provide permanent coverage so that older people know that they will not leave their kids or grandkids with high expenses and debts after they pass away. Even younger people may consider buying some whole life insurance so they can be assured of lifetime coverage. In fact, may parents and grandparents, buy policies for minors because children are so much cheaper to insure!
A guaranteed life insurance policy uses a waiting period, rather than underwriting, to issue coverage. They usually pay out the full face benefit after a period of time, two or three years. If the insured person passes away before that time, then the beneficiary will get back all premiums paid with a set amount of interest. You should only purchase this type of insurance if no “immediate benefit” life insurance is available, but in that case, it really is a win-win deal.
An immediate benefit senior life insurance policy will pay out the full benefit right away, even if the insured person dies three days after the policy is issued! The premiums are usually cheaper than guaranteed life insurance too. Many senior policies require very few health questions, and no medical exam. In fact, if a person is not in a nursing home and does not have a terminal disease, they can usually qualify for an instant benefit!
Here Are Some Reasons to Consider Senior Whole Life Insurance Policies:
- Funeral Costs Average $8,000 in the US, and some cost more than $15,000. Other costs may involve travel, transporting a body, or settling debts. This is a large bill to leave to children.
- Leave an estate to your heirs which is usually tax free. Life insurance is an affordable way to build an inheritance for children and grandchildren.
- Whole life insurance actually builds up a cash value, and can be used as an asset while the insured person is still alive. Many whole life insurance policies actually can be borrowed against or cashed in.
- Whole life insurance policy rates do not increase, unlike some term life insurance policies. If you purchase life insurance for a five year old child, or for a 65 year old adult, you have set a rate they can keep for life!
- Cash from a life insurance policy can be used in any way that the beneficiary needs not use it, and it does not lock you into doing business with a specific funeral home.
If you do not have enough savings to insure that your final expenses can be taken care of, of if you would like to leave an estate for your children or grandchildren, consider the traditional approach: Whole Life Insurance!