Although finding life insurance for seniors with pre-existing conditions may be more difficult, the truth is that it is not as hard as many people may think. In fact, in many cases, coverage can be purchased at very affordable premium rates – provided that you know how to shop for policies and compare quotes.
In many instances, certain types of life insurance policies for seniors will not even require that a medical exam be taken by the applicant as a part of the underwriting process. This can not only make qualifying for coverage easier, but it can also speed up the process considerably, providing the individual with his or her much-needed coverage more quickly as well.
Why Seniors Need Life Insurance
There are many people who believe that once a person has reached an older age, he or she no longer needs life insurance. However, this is simply not the case. There are many reasons why seniors need life insurance coverage.
One of the biggest reasons that seniors need life insurance is for the payment of final expenses. Today, the average cost of a funeral and related costs can run in excess of $9,000. In many instances, payment for these costs is due in full immediately. The families and survivors of a senior may oftentimes not have these funds readily available, forcing them to put payment on credit, dip into savings, or to sell assets in order to come up with the funds.
If, however, the senior had a life insurance policy, the funds for his or her final expenses could easily have come from that policy – and the policy’s proceeds would even be income tax free to the beneficiaries.
Another reason that seniors need life insurance is for the payment of estate taxes. In many cases, estate taxes can eat up to 50 percent – or more – of a person’s total estate. This means that rather than going to a person’s survivors, their assets will instead go to Uncle Sam. If, however, the individual had life insurance, the funds needed to pay estate taxes could come from the policy, leaving precious family assets for loved ones.
Seniors should also have life insurance to use as income replacement for a surviving spouse. Oftentimes, when one spouse passes away, his or her pension income will also stop. This could mean that their surviving spouse will no longer receive income from that pension. By having a life insurance policy, the proceeds could replace the lost income for the survivor so that he or she will not have to drastically change their lifestyle.
Types of Life Insurance Available to Seniors with Pre-Existing Conditions
There are various types of life insurance available to seniors with pre-existing conditions. The type of policy and the amount of coverage, however, will typically depend on the particular condition, as well as its severity.
For example, those who have conditions such as high blood pressure, high cholesterol, or mild diabetes may be able to qualify for traditionally underwritten term or whole life insurance coverage. If you are looking for cheap life insurance for diabetics, we can help you.
Term life insurance is pure death benefit protection. Here, the insured pays a premium in return for a stated amount of death benefit to be paid out to a named beneficiary (or beneficiaries) should the insured pass away while the policy is in force. Term life insurance policies typically last for a certain number of years such as 10 or 20. In some cases, depending on your age at the time of application and your health condition, you may be able to obtain a 30-year term life insurance policy.
Whole life insurance provides an insured with a death benefit as well as a cash value component. The cash in the policy is allowed to grow on a tax deferred basis. This means that there is no tax due on the growth of the cash until it is withdrawn. Although the premiums for whole life insurance are usually more than those for a comparable amount of term life coverage, a whole life insurance policy will never expire, provided that the policyholder continues to pay the premium.
Both types of policies will usually require that an applicant take a medical exam as part of the underwriting process. This typically entails submitting a blood and urine sample. These samples are analyzed for any additional health conditions that could pose a risk of claim to the insurance company.
If the applicant is unable to qualify for coverage through a traditionally underwritten life insurance policy, there is another potential option with guaranteed issue life insurance. With this type of coverage, there is no medical exam required for acceptance, and there are typically no health questions to answer on the application for coverage. As long as the insured pays the premium, the policy will remain in force.
It is important to note that in many instances, the insured must own the policy for a certain amount of time – such as two or three years – in order for the stated death benefit to be paid out to the beneficiary. Otherwise, for example, if the insured were to die within the first couple years, the beneficiary would only receive a refund of the paid-in premium.
Where to Purchase Life Insurance
For seniors that have pre-existing health conditions, it is important to shop around prior to making your life insurance purchase. In doing so, we can help. We work with many of the top life insurance carriers in the country, and we can help you in determining the best policy, and premium, for your specific needs. We can get you the information that you need within seconds, all from your home computer, without ever having to meet in person with a life insurance agent. In order to begin the process, fill out the form on this page.
If you should have any questions at all regarding where to find life insurance for seniors with pre-existing conditions or how to obtain premium quotes, please feel free to contact us directly, toll-free, at 888-229-7522. We are here to help.