Senior life insurance is simply a whole life insurance policy but with a smaller value. Due to the fact that whole life insurance is permanent, it is suitable for senior citizens. It can be applied for up to the age of 85.
Why Opt for Life Insurance as a Senior?
A senior life insurance policy offered by companies such as Senior American Insurance is a good way to plan for the expense of a funeral. Funerals in the United States generally cost in excess of $7,000 and often a lot more. In essence, a life insurance policy is a way to lessen the burden on immediate family. After all, their grief may be over-whelming as it is, without having to worry about meeting the costs of the funeral too.
Senior life insurance can also act as a cash value policy. Over time, once there is some cash value established, they can be used to borrow against. Or indeed, the cash value can be used for other purposes depending on the requirement of the policy holder.
Immediate Benefit Life Insurance
Most insurance companies do not tend to ask many health-related questions should someone wish to avail themselves of senior life insurance, providing of course that those who want to purchase the insurance do not have a terminal disease and are not residing within a nursing home.
Policies can offer an immediate death benefit. Let's presume for example that you should wish to purchase a policy for the value of $15,000. Once the policy is in force, should you pass away, your beneficiaries are entitled to the full sum. The money can be used in any way but these policies are often used to ensure all funeral expenses are catered for and there is no burden upon family members at the time of death. Money received from a life insurance policy normally is fully tax free.
Guaranteed Issue Life Insurance
Should a senior have a serious disease or should they be confined to a nursing home, then Guaranteed or Graded Benefit Life Insurance may be a better alternative. With this type of policy there is a "waiting period" involved. Should the policy holder survive the "waiting period" then they have the option to leave the entire face value of the policy to their chosen beneficiary or beneficiaries. However, should the holder not survive then the beneficiary would normally receive the sum of the premium which has already been paid for, plus an interest rate on top of this which has been pre-determined in advance.
For those who are unable to avail themselves of the immediate benefit option, a guaranteed policy looks like a very attractive alternative. Nevertheless, if it is possible to obtain the immediate benefit policy then that's the one which should be chosen because the beneficiary can get the full offering straight away and the cost of this option is lower than the other.