Life insurance options for elderly people
Although most insurance companies do not approve life term insurance applications from senior citizens, those who are already at an advanced age and want to buy a life insurance policy need not be limited to costly whole life insurance options. Here are a couple of possible avenues that seniors can avail.
- Guaranteed Issue Life Insurance. Term life insurance coverage may be an elusive dream for many older persons with existing medical conditions, but there is a viable alternative. Guaranteed life insurance has its disadvantages, including a wait of at the most three years for heirs to claim the full benefits, and a higher cost. But the most important thing is, they are not difficult to get, and the graded death benefit is guaranteed, though incremental in enforcement.
- AARP Special Plan. The American Association of Retired Persons (AARP) facilitate the purchase of term life insurance policies for interested senior citizens. The benefits are similar to most regular life term insurance coverage, but the policies approved for seniors are limited to at most 10 years.
On the search for equal opportunities
Most active senior citizens are still interested in getting life insurance with the intention of providing for their loved ones when they pass. In the insurance industry, it is a well-known standard that the older an applicant is, the higher the premium. And by the age of 50 and above, many applicants face disapproval.
Even a healthy person aged 50 to 59 find it rather difficult to get a cost-effective policy. What more if this man or woman has maintained a smoking habit? And since conditions such as heart disease and diabetes increase in incidence in advanced age, persons diagnosed with these conditions are given much higher than average rates.
But there are ways for senior citizens to get cheap term life insurance products For most seniors, whole life insurance are way too expensive, despite the fact that this with this type of policy, a senior citizen is more likely to get approved. The interest in affordable life term insurance has risen due to the the current low pension and Social security benefits provided to spouses and/or children after a person’s death.
One of the best moves that a senior citizen can make is to seek the assistance of a financial advisor specializing in insurance policies. In this way the pros and cons of the options, limited they may be, can be evaluated in detail, as a basis for making the final decision.