Available Options in Term Life Insurance for Seniors

Elderly people may have frail bodies and health issues but this does not necessarily mean that they cannot purchase an insurance plan let alone find a life insurance quote on line or storefront. But of course, the options would quite be limited compared to individuals who are young and in tiptop shape. Make no mistake though; it is still most likely that senior citizens would find at least close if not the deal that they are looking for with the evolution of policies. Below are some of the options that you can consider if you are trying to buy a plan.

• Single-pay term life plan –most of the time, the elderly purchases insurance policy in order not to be a burden to their family. This is true most especially with the case of seniors who does not have dependents. The death benefit is used instead for financing their final expenses. However, those who wish to leave inheritance to their family that wouldn’t be eaten by taxes. Elderly who sizeable money which wont be used for certain purposes can pay “one-time big-time” for an insurance plan. This would serve as an investment as well as it can grow overnight as it leverages your fortune.

• Critical illness coverage –this is offered usually in term life insurance for seniors. This is because it only makes sense to aged individuals. One catch of this business is that your beneficiaries can only reap the benefits of the plan upon your demise. However, there are instances wherein you would need the money before you meet your Maker, like when your hospital bills have skyrocketed when an illness progressed. Critical illness coverage can be bought together with the plan or separate from it. Bear in mind though that there are only specific diseases that it covers. Talk to your insurer about it.

• Instant term life –people who are aged 75 at the most and those who have several issues can still qualify for this kind of plan. Instant term life plans are usually bought over the internet. You may say most of the elderly at such age have all the time in the world as they have ceased from working. However, there is still market for this (or it won’t be offered by insurance companies otherwise) surprisingly.  This is mainly due to the shift of lifestyle. More and more elderly have been learning to keep up with technology and prefer to transact online.

• Life insurance no medical exam –more often than not, senior citizens who have health problems purchase guaranteed no medical exam plan. Age and health are two most important factors in the underwriting process and it plays a significant role in determining the insurability of a person. Most elderly obviously will not do well with these aspects. This plan requires higher premium as the interest of the insurer must be protected as well. In practical point of view, it is not the best alternative and must be taken up instead as your last resort. You may consider buying this if after you had exhausted all efforts but found yourself rejected every time.

• Convertible term life policy –one might argue that of all people, it is the senior citizens who would have the closest brush with death age and health wise. While there is some ounce of truth in this premise, you ought to bear in mind that their lifestyle has been changing and the new developments in technology, let alone in medicine have been giving them a “new lease in life;” prolonging their lives. This is why even if they are already in the dawn of life; convertible policies can still apply to them. In addition, convertible plans will give them the leeway to shift into other policies that they deem suitable.

• Low cost term life insurance –this plan is perfect for the elderly who are in a fixed income, especially to those who are only relying on their pension. Low cost term life insurance plans might have limited coverage but if you don’t need more, this will do the trick. For instance, if you intend to only finance for your final expenses so as not to burden surviving spouse with it, such type of plan can be bought. 

Even with old age and health issues, there are still a number of options that one can choose from. There is no need to rush. Deliberate in which one you should go for so as not to waste a penny.

Article by David Livingston of EQuote, who is a specialist in everything life insurance. For more information on life insurance and term and life insurance no exam, visit his site today.