There are many changes that can come with aging, such as healthcare coverage, living arrangements, physical limitations, worrying about a will and testament, and even figuring out life insurance. These changes can often be confusing and complicated. That’s why we’re here to share this guide to life insurance for seniors.
What You Need To Know About Life Insurance Policies for Seniors
The best life insurance for seniors will depend on their specific situation and what they are able to afford. This is because there are several different types of senior life insurance. It’s important to understand the differences between all of these options in order to make the best decisions. The different types of life insurance for seniors include:
- Term Life Insurance – Term life insurance policies are usually the cheapest option available to seniors, especially if you are in good health and are willing to take a medical exam. Term life insurance is temporary, with policies usually lasting for 10 or 20-year periods. However, this means that individuals over 80 years old may have difficulty securing a term life policy. Term life policies help to provide financial support to a beneficiary or cover your debts should you die during the policy term.
- Whole Life Insurance – Whole life insurance policies provide coverage for the entirety of your life, giving you long-term peace of mind. As long as you pay the premiums, they will pay out your benefit no matter when you die. These policies invest a portion of your premiums into a savings account, which then builds cash value. This allows you to withdraw the cash or take out a loan against its value. Whole life policies are generally more expensive than term life policies. This is especially true when purchasing a policy later in life, since the insurer may have to pay out the policy sooner if your health declines.
- Guaranteed Issue Life Insurance – Guaranteed issue life insurance policies—often referred to as “senior life insurance” or “final expense insurance”—allow you to get coverage without a medical exam. Instead, they usually only require that you fill out a health questionnaire. This is a good option if your health prevents you from qualifying for other life insurance coverage. However, because of this, you usually have to wait two years until full benefits are available, and coverage rarely exceeds $100,000.
- Funeral Insurance – Funeral insurance—also known as “pre-need insurance”—is usually purchased directly from funeral homes. The payout of the policy’s benefit then goes directly to the funeral home after you die to cover the cost of prearranged funeral services.
- Guaranteed Universal Whole Life Insurance – Guaranteed universal whole life insurance—also referred to as “term for life”—is a combination of permanent and term life insurance. Instead of selecting a certain term or number of years to cover, these policies allow you to choose what age you want the policy to expire. Guaranteed universal whole life insurance policies offer lower premiums than whole life insurance policies, and generally provide high coverage amounts with little cash value.
At Celebrate Senior Living, we are committed to celebrating the moments, victories, and memories that will last a lifetime for our residents and their loved ones. We are a Midwest-based foundation that serves Illinois and Indiana residents by offering Independent Living, Assisted Living, Memory Care, and Skilled Nursing living options. We also provide three delicious, healthy meals a day to ensure our residents get the nutrients they need!
If you or a loved one are interested in senior living options, schedule a tour with us today! You can also learn more by exploring our communities, which include South Holland, Niles, and Fort Wayne, or by contacting us with any other questions!
