Life Insurance for Senior Citizens
Putting it bluntly, insurers of the past were reluctant to sell life insurance to people who were so old as to be considered close to death. Nowadays, thanks to changing attitudes and an aging population living longer, it's never too late to buy life insurance. More companies than ever before are selling life insurance for senior citizens.
The 2 main types of life insurance for seniors are deferred life and guaranteed life. Deferred life policies are short-term and will only refund paid premiums, or pay limited death benefits, during the first 2 or 3 years of the policy. After this period, beneficiaries are guaranteed to be awarded the full amount of the policy.
Guaranteed life policies provide people over the age of 50 and 60 with basic life insurance benefits for set periods of time. A fixed time-period in this context will usually be 20 to 30 years. Candidates for guaranteed life insurance will typically have to provide information about their medical history in order to be considered for acceptance.
To avoid being scammed, it's important to do due diligence before choosing an insurance company. Check that the company is properly licensed before engaging into business with it. For useful information on insurance providers in the locality, pay a visit to the state's insurance commissioner website.
The insurance commissioner's office is responsible for overseeing the insurance sector and therefore has a vast amount of resources and knowledge on life insurance for senior citizens.
Before signing any life insurance agreement, it's important to get the full proposal in writing and read it several times, to gain a comprehensive understanding of the contract and its implications.
Anyone buying life insurance should demand full disclosure of all information on the policy and the benefits, including any potential negative consequences. This is especially the case if the insurance is being bought as a replacement for existing coverage with the same insurer.
For example, there are many "hidden" charges associated with canceling and altering policies. Request the disclosure as early on in the insurance-buying process as possible, so that there's plenty of time to review the information and make decisions based on it.
Life insurance for the elderly will typically be more expensive than regular life insurance, due to old age being an increased risk factor. However, there are certain tips and tricks that can help make life insurance for senior citizens more affordable.
Spend as much time as possible comparing as many quotes as possible to unearth the insurance rate that offers the best value for money. If necessary, consult an independent, licensed financial advisor in person or over the phone. Also, keep premiums down by maintaining good health and a clean driving record.
It makes sense for anyone over the age of 65 to buy life insurance, especially now there are so many providers willing to sell it to the elderly. Don't rush into anything, but instead take plenty of time to consider what policy to opt for and to choose a reputable company.