Life Insurance for Elderly People

It is a common misconception that seniors cannot obtain the proper life insurance to support their loved ones and cover funeral costs in the event of their death.  While it is in your best interest to purchase insurance at a young age while you are healthy, many people put this off simply because they do not feel they need it or the thought of death is one they do not want to consider.  The truth of the matter is that everyone dies, at what age is the part that is unknown.  Any death is life changing for the family and difficult to cope with.  It is even more difficult when your loved one was not properly covered with life coverage, leaving their family to suffer financial hardships.  It is never too late to purchase even a small policy.  Life Insurance for elderly people is available in many forms.

Whether it is a supplemental policy, or a stand alone policy, there are options available for those that are young at heart, however not young in years.  If you are in the market of purchasing life insurance there are things to be aware of.  Even if you are in great health, and do not have any pre-existing conditions, all life insurance plan premiums will be higher than that of a 30 year old in the same health.  This is because the elderly provide a larger risk for the insurance company.  Risk means the company is more likely to payout a death claim that is covered under your policy.  Because this risk is evident, your premiums will be larger in accordance.  

There are two types of life insurance: term insurance and permanent insurance.  Term insurance is a policy that is set for a certain number of years covering a specific death benefit.  For example, a 20 year term insurance policy with a death benefit of $250,000 will cover the "named insured" for $250,000 in the event that their death occurs within the 20 years of the term.  The beneficiaries listed on the policy will receive the pay out.  At the end of the term, the policy is null and you may have the option to "re-enter" or re-qualify for the policy if the company so decides.  A downfall with this is that, if your health turns for the worse during your term and you no longer qualify for insurance due to a pre-existing condition, the company can decline you for further coverage.  This is commonly found with under-insured seniors and those with no coverage at all.

To prevent this from happening, there is the permanent insurance policy, otherwise known as Universal Life or Whole Life policies.  These policies are like buying a home rather then renting one.  This means that your policy has a set premium and does not expire within a number of years.  The premium paid earns a percentage of interest depending on the market, and allows your policy to accumulate cash values.  These values increase the death benefit amount or can be borrowed.  The best feature of Whole Life policies, is that your premium is based on the age you take the policy out, and as long as your continue paying your premium, your policy will stay in force.  For those who have a decline in health with an increase in age, they will have a policy in force to guarantee the peace of mind their family will be taken care of in the event of their demise.  While whole life policies are expensive, they are well worth the investment.

Life policies for the elderly will be expensive, and you will not be able to find a carrier willing to offer a permanent policy that does not cost less than thousands of dollars a month.  The most common form of policy available to seniors is term life for the elderly.  These terms will be of a shorter length then those for younger applicants, generally a one year or five year term depending on your health.  Most carriers will require older applicants to go through rigorous medical screening to even qualify for a small plan.  

There are plans available to the older generations that require no medical screening or medical questions.  These guaranteed life acceptance programs, such as Colonial Penn and AARP, offer plans with a minimal death benefit and a term policy.  Although it will not provide a substantial amount to your survivor, it will be enough to comfortably pay off a funeral with a little left over.

It is never too late to offer your loved ones the peace of mind that is provided by life insurance.  Whether you have no coverage, or limited coverage, there are plans available for seniors to supplement their existing benefit, or cover final expenses.