Senior Life Insurance

Senior-Couple-Happy-in-their-RetirementMost senior citizens these days have already bought life insurance of some kind or another from a senior life insurance company , but the death benefit often is too small to take care of funeral expenses and medical bills. In most states, a life insurance death benefit is exempt from creditors. It is also exempt from inheritance taxes.

This makes it a great way to transfer wealth to survivors. Seniors often worry that that they will not qualify for life insurance, but many states have laws requiring insurance companies to provide coverage to seniors. Since the senior population is growing fast, many insurance companies are finding it worthwhile to offer life insurance to senior citizens.

The best premium rates are offered to seniors who undergo and pass a medical examination, but many companies offer insurance with no exam required. Typically these policies, known as Guaranteed Acceptance Life Insurance (usually a type of whole life insurance or universal life insurance) will pay a full death benefit in the case of accidental death as soon as the policy goes into effect.

However, the policy will pay a limited death benefit if the policyholder dies of natural causes during the first two years of the policy. The insurance companies place these limits on the policies to avoid writing “deathbed” policies. The limited death benefit normally consists of the premiums paid plus interest. Once the two-year waiting period is over, the policy holder is fully insured.

Thanks to improvements in diet and healthcare, seniors in the US are living longer these days. As a result, there is a risk of outliving your term life insurance policy. Whole life insurance will cover you for your whole life. However, whole life premiums can be much higher than term life premiums.

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