What is senior life insurance? It is an insurance policy aimed at covering expenses that come with old age like medical costs, nursing care costs, remaining debts and burial or funeral expenses.
Senior life insurance for that reason, should be purchased to ease the financial burden that comes with old age, and ultimately, death. The insurance is ideal for those in retirement especially if they don’t have permanent life insurance or their employers stopped paying for life insurance after they retired.
Senior Life Insurance Is Not Necessary If:
- You have saved enough to cater for your final days and burial expenses.
- You have no credit card debts, loans or mortgages that will require to be settled before or after your death.
- You have already made burial arrangements with a funeral home of your choice.
What Exactly Is Meant By Final Expenses?
These are generally funeral costs which include expenses on body dressing and viewing, transportation, casket, embalming and hospital bills included. Robert Schmidt of Burial Insurance Pro notes ” many seniors will use a whole life insurance policy, known as a burial insurance policy to address all of their funeral expenses. These policies generally provide coverage ranging from $10,000 to $25,000. At the time of their death, their family receives a lump sum, tax free payment that their family can use to pay for these types of funeral costs.
Cremation may not cover much expenses and it’s a bit economical.
What Life Insurance Offer To Seniors?
You may be wondering, what really constitutes senior insurance and how you stand to benefit from it in this modern era.
Well, you are not necessarily the beneficiary of life insurance, but loved ones who are tasked with the facilitation of a decent send off.
Your loved ones are the same people who will make major decisions about taking you to a nursing home if need be, and settle involved charges. In details, these are the benefits of purchasing life insurance.
· Long-Care Financing
With old comes health complications like chronic illnesses and other medical issues. Most prevalent illnesses at old age include ALS, renal failure, cancer, stroke, organ transplant and more.
Your loved ones may also consider taking you to a nursing home if it happens to be the most logical option at the moment. All these expenses are catered for effortlessly when there is a term life insurance or a Medicare plan in place.
· Peace of Mind
How? Because of the fact that your loved ones will not struggle to cater for funeral arrangements after your death. So, much money goes into organizing and facilitating decent and modern burials, and a funeral life insurance compensation could come in handy. However, this type of life insurance is particularly helpful for seniors over 90 who can’t quality for a traditional plan.
· Debts Settlement
Death at times knocks when least expected but in old age, it is expected. However, you may pass away before settling debts leaving your loved ones with the task of settling them. Such debts could be medical bills, or estate taxes and loans. Part of the senior insurance compensation could be used to settle most of the debts, if not all of them.
· It’s Part of Your Legacy
Not all compensation funds from insurance are used for final expenses. This means that some money is left for loved ones to use on other expenses.
Some of the funds can pay for college fees, mortgage or even loans for loved ones. That is something great to be remembered for by your grandchildren and other family members.
Medical Exam and Rider Benefits
There are several insurers in the insurance market that provide senior insurance. As many as they come, so do their terms and conditions of service delivery vary.
You, therefore, need to take your time and study the market, weigh the available options and make the final decision. When applying for senior insurance, you will not necessarily undergo a medical test, but they will subject you to some medical questions.
While deciding on taking a policy, you may also want to determine if you need a rider. Insurance riders are extra options incorporated in a policy which are to be enjoyed while living.
They however come at an extra cost and they include:
· Accelerated Death Compensation
This is whereby a full death amount is compensated after you are diagnosed with a certain medical condition that may require huge funding or a situation that requires nursing home solution or, an in-care home solution.
· Beneficiaries Benefits
These benefits are for children or grandchildren that may die during the senior insurance period coverage. These death benefits are smaller, compared to those of the owner.
Insurers That Offer Senior Life Insurance
The following are examples of insurers who are eligible to offer you senior insurance services. They are several, but a few have made the cut on this list:
· Mutual of Omaha
If your age ranges between 45 and 85 years, you are eligible for senior insurance policy from Mutual of Omaha. The age requirement for those based in New York however falls in between 50 and 75 years. This insurer compensates benefits worth between $2,000 and $25,000. Mutual of Omaha burial insurance is fairly easy to qualify for, and most people will be approved for their immediate death benefit plan. These policies are very competitive in terms of pricing, and this plan is very popular among the senior community.
AARP senior insurance policy cover is only available to its members. Monthly premium payments stop at 95 years. The insurance coverage on the other hand lasts a lifetime. To be accepted by AARP, it all depends on the answers you give to medical questions they subject their applicants to.
· Colonial Penn
This other insurer is ideal for persons whose ages range between 50 and 85 years. Death benefits depend on age, and cash value begins to build after one year of consistent premium payment.
This insurance company accepts senior insurance applicants of ages between 55 and 85 years. Those in New York need to be 50-75 to be considered by Trans America. The company pays out death benefits of amounts between $1,000 and $40,000. Your premiums also build cash value with time.
· State Farm
This is one of the insurers who give you a chance to earn dividends during the period you are covered by them. They cover persons of age 55 to 80, and 50 to 75 for those in New York. Their death benefits total up to $10,000.
Senior insurance benefits are worth pursuing, but don’t feel rushed to get one. Take your time to read final prints of underwriters you are interested in, compare options and if necessary, seek the help of independent insurance agents.
Also, learn to ask questions when things are not clear to you. That’s the only way to get a suitable senior insurance cover.