Variable factors when purchasing senior life insurance
Senior life insurance is the most expensive type of life insurance, because the risk is greater as a senior than at any other point in life. There are many insurance providers that will provide life insurance for senior’s at a good price, providing you are in good health. However, if you have a history of heart disease then it can be fairly difficult to get life insurance at any price.
The rate for senior life insurance characteristically takes into account
- Age
- Gender
- The medical history of family
- Your personal health
- The type and terms of the policy
- The amount of time you wish to have life insurance cover for
Cheapest senior life insurance cover
By far the most cost effective way of purchasing life insurance cover is to purchase a whole life insurance policy when you are younger. For many years now it has been popular to use term life insurance policies to supplement other life insurance policies. Short and long-term life insurance policies are for most families a godsend. They provide additional cover when we most need it and in case of life insurance for seniors it can offset burial costs.
Unfortunately, as we age we definitely need life insurance more than at any other times in our lives, the term policies which are for a fixed term run out leaving most families with less options regarding senior life insurance. The good news is the fact that several insurance companies will give you the option of paying for a whole life insurance policy with a lump sum. In effect you can purchase life insurance cover by purchasing 10 or 20 years at once.
Many of the options for senior life insurance require a full medical examination and the results of this medical examination often preclude the seniors from purchasing the life insurance cover that they require.
There are two types of senior life insurance policies that can be purchased without a medical examination. Typically they have a smaller face value than other insurance policies, – in general they start at around $2,000 and the maximum payout is $25,000. As the insurance companies have less to pay out their entry requirements are less rigid. However they do allow beneficiaries to have a lump sum that will pay for a burial.
They are called:
- Simple issue life insurance
To qualify for a simple issue life insurance policy it is normally required that you fill in a short questionnaire regarding your health history. However, most seniors will be able to qualify. As a general you will be ineligible for this type of senior life insurance if are incapable of looking after yourself and reside permanently in a nursing home or you are terminally ill.
- Guaranteed issue life insurance
Guaranteed issue life insurance is the catchall safety net for those that do not qualify for simple issue life insurance or those that do not have universal life insurance. To take out guaranteed issue life insurance you do not need to undergo any medical tests. Some insurance companies will ask you to fill out a health related questionnaire, though this does depend on the policy and the company.
The catch with a guaranteed issue life insurance is that it does not pay out from day one of the policy being taken out. It is necessary for the insured to live for a specified amount of time which is usually 2 to 3 years. Should the insured die before this timeframe is up then the insurance company refunds all of the premiums paid plus interest.
A guaranteed issue life insurance is one way that seniors can purchase life insurance knowing that in certain circumstances their dependents will get the premium returned. Because the premiums are paid back before the two or three years that it takes to qualify it can be used by seniors as a top up the insurance.
Finding a Guaranteed Issue Life Insurance Policy
Senior life insurance policies should ideally be purchased from a grade “A” insurance company. However it is still possible to get a great deal for senior life health insurance by comparing prices on price comparison websites.
One of the benefits is the fact that you can compare several quotes and once and another is the fact that many of them have a live chat option. Should you have any concerns about your senior life insurance policy you can chat to an insurance professional about your senior life insurance policy requirements.