Many seniors know that getting life insurance is important, but they might not know where to start. End of life expenses can end up taking a huge toll on the family of the person who has passed, and having a senior life insurance policy in place can make the process so much easier. There are plenty of different options for seniors who are interested in life insurance. Prices are going to depend the amount of insurance you need, your age and health, and the term of the policy. But, there are affordable options out there for almost everyone. Being willing to have a doctor prove you are in good health will go a long way in reducing the costs of a policy, but in some cases, people can even get senior life insurance without even having a physical. Securing your financial future, and that of the ones you love, is now easier than ever. Here are some steps to help you in this process:
Decide How Much Senior Life Insurance You Need
The first step in getting yourself insured as a senior is to decide how much life insurance you will need. Do you have debts that will remain after your passing? Do you have enough savings to cover the costs of death? How much of an inheritance do you plan to leave to your loved ones? All of these questions should be answered, and factored in to your decision. While it is impossible to be exact, a rough estimate of your assets minus your debts should give you an idea how much money will remain when you are gone. If there are more debts than assets, you definitely need senior life insurance. If there will be money remaining after your debts are paid, you need to decide if you will be satisfied with the financial inheritance you will leave behind. If you think you would like to leave more money to your family and loved ones, you may want a senior life insurance policy that will fill the gap. Once you have determined how much you need, you will need to figure out how much you can afford.
Decide How Much Senior Life Insurance You Can Afford
One of the factors that will likely go into determining what type of plan you choose is the cost. The larger the payout amount, the more the policy is going to cost. You need to balance the amount you need for tomorrow, with the amount you can afford today. Hopefully these two will coincide. The only way to figure out what the cost to you is going to be is to compare quotes from a couple of different reputable providers. Most insurance companies will offer a multitude of policies to seniors. By comparing the features and benefits of a the different policies, you will be able to make an informed decision. To help you figure out what type of life insurance plan will best fit your needs, here is a brief synopsis of the three most common types of policies.
Types of Senior Life Insurance Plans
Term Life- This type of life insurance policy is designed to provide a defined benefit amount for a specific period of time. Premiums are typically paid on a monthly or annual basis, and the payout is guaranteed for the entire length of the policy. Term life policies usually require a physical, and an investigation into you medical history. Once the cost is determined, premiums remain level throughout the life of the policy. Because there is no cash value accrued during the life of the policy, term life is typically the cheapest form of senior life insurance.
Whole Life- Whole life combines the security of a defined payout just like a term life policy. In addition, this type of policy has a cash value as well. As the payment of premiums are made, the policy accrues a surrender value. This surrender value represents the amount of cash the policy can be surrendered for while you are still alive. A whole life policy can provide retirement income after a certain number of years, and can be borrowed against in the case of a financial emergency. Whole life policies will also require an investigation into you medical history. Because of the additional cash value created with a whole life policy, the premiums are typically more expensive than that of a term life policy.
Final Expense Insurance- Final expense insurance can be purchased by almost anyone under the age of 80. The policy will provide a defined financial payout at the time of death. Although there is not typically a medical evaluation, the payout is limited. This type of insurance is normally purchased to cover funeral expenses. Though the payout is defined, there is usually a waiting period that must be observed before the insurance company will pay out any death benefits. Final Expense Insurance is generally the least expensive type of senior life insurance.
There are numerous prominent life insurance companies that provide free quotes via the Internet. Contacting the different senior life insurance companies is the only way to really learn about all of the options. You need to compare quotes, discuss the options with your family, and decide exactly how much coverage you will need. Once you have concluded which policy is right for you, you will want to check with the National Association of Insurance Commissioners to confirm the life insurance company you have chosen is in good standing.
Seniors know that having life insurance is essential. While your family is going to have a difficult time dealing with your passing, trying to deal with the remaining financial burdens can make it almost unbearable. Shop around, compare different quotes, and make an informed decision that will allow you to select the senior life insurance policy that is right for you. Now is the time to make arrangements to protect your family and loved ones in the future.