Senior Life Insurance: Is It Possible To Get Covered?

Life insurance for seniors is a topic that sparks many questions, such as Can I get life insurance at my age? and What type of life insurance should I get?. The simplest answer is yes, you can get life insurance as a senior, but it is not as easy to obtain as when you were younger. The cost will be significantly higher, the medical requirements are much stricter, and the types of policy options available are more limited. However, it is still possible to find affordable life insurance plans that cater to your needs, financial situation, and health condition.

No Medical Life Insurance

• Availability: No medical life insurance is available in different forms, such as term or whole life insurance policies. However, it may not be offered by all insurance companies or in all states.
• Cost: The cost of no medical life insurance is based on factors such as age, lifestyle, coverage goals, and medical history. Even without a medical exam, your provider may still consider your medical history when determining the cost of your plan.
• Coverage: No medical life insurance can provide coverage for a specific period (term life insurance) or for the entire life of the policyholder (whole life insurance). Term life insurance is generally more affordable, while whole life insurance tends to be more expensive but guarantees a death benefit.
• Suitability: No medical life insurance may be suitable for seniors who want to expedite the process of obtaining life insurance, have a history of good health, or need coverage for funeral and burial expenses.
• Alternatives: If you are unable to afford the premiums of a no medical life insurance policy, there are alternative options such as guaranteed issue life insurance, simplified issue life insurance, burial or final expense insurance, and accidental death and dismemberment insurance.

Term Life Insurance

With term life insurance, the policyholder must pass away within the chosen period for their beneficiaries to receive benefits. This means that if you outlive your policy term, your coverage will lapse and your beneficiaries will not receive a payout when you pass away. If you want to leave money for your family regardless of when you die, you may want to consider a whole or universal life policy instead.

Seniors in good health who still have major financial obligations, such as a mortgage or outstanding credit card or loan debt, may find term life insurance to be a good fit. Being in good health will also help keep premiums low. It is important to note that life insurers may restrict term lengths for older adults or not offer term policies above a certain age.

When applying for term life insurance, you may need to fill out a health questionnaire and undergo a medical exam, unless you opt for simplified or guaranteed issue term life insurance. These alternatives have fewer or no health restrictions and are worth considering if you have a health condition that might disqualify you from conventional life insurance and need coverage fast. However, they generally cost more than conventional life insurance and offer less coverage.

Whole Life Insurance

The benefits of whole life insurance for seniors include:

• Financial protection for loved ones: Whole life insurance can provide financial security for beneficiaries, helping them cover funeral costs, medical bills, and remaining debts such as mortgages, credit card bills, and auto loan payments.
• Peace of mind: Knowing that your loved ones will have financial support in your absence can give you peace of mind.
• Living benefits: Whole life insurance policies may include "living benefits" that can be useful if you experience health issues as you age.
• Tax-free benefit: The death benefit paid to beneficiaries is typically tax-free.

When considering whole life insurance for seniors, it is important to keep in mind that the coverage options may become more limited as the age of the insured increases. Additionally, the cost of a new life insurance policy increases significantly with age due to the higher health risks. It is also worth noting that whole life insurance policies can expire if the insured person reaches a certain age, such as 95, 100, or 121.

Guaranteed Universal Life Insurance

The key benefits of guaranteed universal life insurance include:

• No-lapse guarantee: The policy will not lapse as long as premiums are paid in full and on time, ensuring coverage for the duration of the policy.
• Age limit on premiums: The premium payment schedule can be customised to most ages, ranging from 90 to 121.
• Fixed premiums: Premium payments remain the same throughout the policy, providing peace of mind and ease of budgeting.
• Guaranteed death benefit: The death benefit is guaranteed, regardless of market performance.
• Customisable coverage: Depending on the insurance company, the coverage amount may be modified, and riders can be added to further customise the policy.

However, it is important to note that guaranteed universal life insurance has minimal to no cash value. While this results in reasonable premiums, it also means that policyholders will not accumulate significant cash value over time. Additionally, there is a risk of losing coverage if premium payments are missed or made late.

Final Expense Insurance

Features of Final Expense Insurance

Types of Final Expense Insurance Plans

There are two main types of final expense insurance plans:

• Full face value plan: Pays out the full benefit immediately in the event of accidental death, and the full benefit after the first two years in the case of non-accidental death.
• Modified benefit plan: Pays out a limited benefit during the first two policy years and the full benefit from the third year onwards in the case of non-accidental death. For accidental death, the full benefit is paid immediately.

• Accelerated Death Benefits Rider: Pays up to 50% of the death benefit if the insured has a terminal illness with a life expectancy of less than 12 months.
• Accidental Death Benefit Rider: Pays 100% of the base policy's face amount for accidental death.
• Children's Term Insurance Rider: Provides coverage for children and grandchildren of the insured.

When deciding how much final expense coverage you need, it is recommended to look at your monthly expenses, including utility bills, food costs, and potential funeral expenses.

Applying for a Final Expense Insurance Policy

Applying for a final expense insurance policy typically involves answering a series of questions about your health, choosing the death benefit amount, and waiting for approval. The application process is generally quick and easy, and coverage can be issued in days, or even on the same day.

Frequently asked questions