Everything About Life Policies for Older People
During the younger years, people spend a lot on educating kids and paying off their mortgages. But when people become seniors, they start looking for life insurance policies. Most people think that they are so expensive, and they cannot find something to suit them. But surprisingly, even at the older age of 65, you can get affordable life insurance. So, here’s what you need to know when looking for life insurance for older people.
Types of life insurance for seniors
There are different types of insurance. In most cases, the insurance you need when working might differ from what you need after retiring. Here are some of these insurances to help you understand better.
- Term life insurance
It’s known as term insurance because it will cover you for a specific time. It’s the cheapest option, but you can only get it if you are healthy and ready to take a medical exam. It’s temporary and suitable to cover debts such as giving financial support to dependents or spouses and mortgages. This life insurance is suitable for seniors over 70. It means they will have ten or 20-year term life insurance. However, if you are over 80 years old, it will be challenging to find term life insurance.
- Whole life insurance
This type of insurance insures you for as long as you are alive and is expensive. The premium has to remain the same as long as you live. It has a cash and loan value. If you don’t pay the premium, the insurance can continue for a short while at the same value. It can also continue for the allocated maturity date at a lower face amount. You can also borrow against the policy’s cash value with a loan.
- Guaranteed issue life insurance/final expense insurance
This type of policy has no medical requirements for you to be accepted. The reason why insurance companies do medical exams is to estimate your life expectancy. That’s why these policies tend to be cheaper. However, a guaranteed issue is the only option if you cannot get a policy due to your health. The insurance has a two-year waiting period before you get the full benefits. But your beneficiaries might not get the benefits if you die from accidental causes before the two years lapse. If this happens, the insurer may reimburse the premiums you paid and interest or smaller amounts.
- Variable life insurance
This policy has a flexible death benefit. It lets you pick the investment you want to direct your cash value. It has a cash and loan value. If you stop the premiums, the policy continues as long as the cash can cover monthly deductions.
- Universal life policy
The policy deducts expense fees from your premium and puts the funds into an interest-earning account. The policy develops cash and loan value. If the premiums are unpaid or too low, the coverage continues. This is if only the money value can cover the monthly premiums out of the account. You can ask for a loan against it or policy surrender for cash.
Before shopping for any insurance, you must learn about the available types. This also applies to policies for older people. First, check the varieties and see which one will cover what you want and fit your budget. Among the different types, there’s something for everyone if you are 60-70 years old.
