Senior Life Insurance Facts

Because of the competitive market, insurance companies have developed in the last few years many products that target elderly people. Policies are tailored to fit the needs of an aging population with lower life insurance quotes than for whole life insurances. Insurance carriers may market them under the name of final expense insurance or as an end-of life expenses policy. Before you purchase such financial products, you must be aware of several senior life insurance facts.

The age of applicants is one of the most important senior life insurance facts, because it determines the premium and the coverage. The benefits vary from one company to another and are not as good as those for younger people. However, most agencies offer special insurance policies to senior citizens that can cover all final expenses.

A preneed life insurance policy is a limited premium payment available at almost any age, but usually acquired by seniors. This type of coverage is designed for funeral expenses that can be previously specified in a preneed funeral goods & services contract. The benefit is based on the total costs at that time and gradually grows as interest. The funeral home can be appointed as the beneficiary, in exchange for the guarantee that the future costs will be covered at the time of death. The excess proceeds can go to the funeral home or to a designated third party. Most of the time the policy is payed with a single large sum, but some can have a long term payment plan.

Other important senior life insurance facts are the disability benefit option and the existence of a previous short term insurance. Applicants can receive disability benefits only if the condition occurs after the senior life insurance policy has been purchased. If the individual gets disabled, the insurance carrier pays the cost of the treatment and the installments. An applicant that already developed a serious physical condition or has home nursing is not eligible for a senior insurance. It is important to purchase a policy as soon as possible and to make sure it provides such protection.

Individuals that have a whole life or universal life policy don’t need new coverage. Those that had a short term life insurance can renew their contract. The short term policy provides coverage for a limited amount of time and is the most affordable type of insurance. If death occurs before it expires, the beneficiaries receive a substantial death benefit. Short term insurances can be purchased without medical examination, although the premium is more expensive.