A Guide To Senior Life Insurance
Senior Life Insurance refers to whole life insurance which is often bought by seniors to cover funeral expenses and other expenses which may need to be dealt with when they die. While this type of insurance is often still known as final expense life insurance or burial insurance, Senior Life Insurance is certainly a more pleasant expression. In general, a Senior Life Insurance policy will offer protection of between $10,000 and $20,000. Such a plan can be viewed as a mini whole life insurance which has a specific purpose - to ensure that final expenses are covered. This means that the insurance has the same benefits as a whole life policy.
1. The insurance can be kept for whole life
2. The policy will build cash value
3. If the cash amount is big enough you can borrow against it if need be
4. Your beneficiary will receive the death benefit tax-free.
Since the term 'life insurance' has become more widely known, Senior Life Insurance has also become more popular. In the past, a young family would purchase a large whole life plan which would cover all of their needs right through until they died. It was a lot cheaper to buy whole life insurance at that time which is why it was used like this. Once term life insurance was introduced, families began to purchase it when they were still young to cover their children, education expenses and other big expenses. When the caregiver reaches a more advanced age and their term policy reaches completion, they then choose a Senior Life Insurance policy to cover their current needs. This approach is much better since your insurance changes as your life changes, this means that there isn't a point where you are over-insured so your insurance expenses will be less.
The Cost Of Burial
Some insurance companies who advertise online or in print materials will suggest that a typical funeral will cost $6,000. However, when everything is added up the typical funeral cost comes closer to $10,000. The reason for this is that the price provided in advertisements or by funeral directors often does not include hidden fees. The total funeral cost can be divided into three parts: fees paid to the funeral director, fees paid to the cemetery and the headstone. You may be able to cover the cost of the funeral director with $6,000 but by the time you arrange the cemetery and the headstone you are likely to need another $4,000.
Senior Life Insurance And Prepaid Burial Plans
Using a prepaid burial plan over a Senior Life Insurance plan offers pros and cons. If you opt for a prepaid burial plan you can ensure that your burial service will happen exactly as you want it to happen. This means that your loved ones who are grieving will not have the task of arranging your funeral. That being said, if the full cost of your funeral is not fully paid at the time of your death, or the service costs have risen, your loved ones may still need to care for an overcharge. In addition, moving may mean that your burial plan is not transferable. You may pay one-third of your funeral service cost to have the prepaid plan canceled. On the other hand, a Senior Life Insurance plan can ensure that your funeral costs are catered for right from the first day and also provides flexibility in case you have changes in your life. If you have a life insurance policy, it is important to use your will to advise your loved ones of your funeral wishes.
What Is The Cost Of Senior Life Insurance?
The cost can certainly be affordable. It makes sense that the younger you are, as well as the healthier you are, the less you will need to pay. The cost for Senior Life Insurance is less than if you were to purchase regular whole life insurance and opt for a low death benefit sum.
What Do I Need To Do To Qualify?
You will need to qualify if you wish to have such a policy. In fact, regardless of which life insurance plan you buy you will always find some qualifications which must be met to be eligible for a life insurance policy. You are able to choose a simplified issue Senior Life Insurance policy or you can choose a guaranteed issue policy. The simplified policy will ask a small number of medical questions to see whether you qualify and does not require a paramedical (blood and urine) to be carried out. A guaranteed issue senior life insurance policy may ask even fewer questions (normally 3 or 4) to see whether you qualify for the insurance. If you are a healthy person, do not take many medications and want to choose an inexpensive option your best choice would be that of a policy with paramedical underwriting. If the insurance company is comfortable with your health outlook they will offer you lower premiums.
It is for this reason that you should only buy senior life insurance from an experienced broker agency, such as, Senior Services Inc. Our brokers will be able to make a price comparison of over 20 companies and choose the best rate for you at your current age and health situation.
If you really don't want to have to go through medical underwriting or you have a number of health problems which you feel may spark the attention of the insurance company you would be best choosing a simplified issue Senior Life Insurance policy. You will just need to answer a couple of questions and the insurance company will do a little research on your medical history and then provide you with a 'yes' or 'no' answer in as little as 24 hours. If you have major health concerns, guaranteed issue will mean you will need to answer the least questions. The paperwork normally contains about four questions and your answers, along with your medical history, will determine whether you qualify for the policy.
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