Are You a Senior Who Needs Life Insurance?
Get the Pros and Cons of buying life insurance when you’re over age 65.
If you’re a senior buying life insurance, you may have one of (or more) of the following needs:
- Final Expenses
- Income Replacement
- Mortgage or other debt
- Legacy Planning
- Estate Planning
Many seniors who buy life insurance are looking for a policy that will be there and will pay the claim to beneficiaries.
There was an article recently about seniors who did not renew their membership to a very popular retirement association.
The interesting part about this article was the amount of revenue earned by this association for promoting insurance products – $650,000,000 was the number mentioned in the article.
$650 MILLION – Wow!
Even more interesting was that the $650 million in revenue generated from the promotion of insurance programs was more money than all the membership revenues combined!
We have had experience providing comparisons to the life insurance policies offered by this association.
Many times, the life insurance available from our independent life insurance companies compares very favorably to the life insurance offered by this association.
There is never any obligation or pressure with our service and life insurance quotes are always FREE!
Life insurance companies did not keep up with product changes that seniors want, life insurance underwriting was outdated, and life insurance companies were just not receptive to seniors life insurance.
That has changed.
There are now more life insurance options available to seniors, from
- Term life insurance
- Whole life insurance
- Life/Long Term Care combo life insurance policies
- Universal life insurance policies
- Competitive underwriting and more….Let us show you what is available.
Why Do You Need Life Insurance?
The reason why you need life insurance will determine the type of life insurance you need.
For example, if you only need life insurance for a few years to cover a mortgage, a term life insurance policy may provide the coverage you need at the lowest possible cost.
If you are looking for a policy to last as long as you live, a universal life insurance policy or a whole life insurance policy may be your best option.
If you are looking for convenience, maybe a guaranteed issue life insurance policy with little underwriting and no medical exam is what you need.
There’s a trade-off for convenience, more below…
Life Insurance Options for Seniors:
In the past, whole life insurance for seniors was the only type of life insurance policy available to seniors…not anymore.
Types of Life Insurance Policies Available to Seniors:
Term Life Insurance – Maybe you are still working, but your company does not offer group life insurance, or you are no longer eligible for it due to your age.
Maybe you just need some life insurance for a short period of time to cover some debt or a mortgage.
Some life insurance companies will now issue a term life insurance policy to an 80-year-old.
Whole Life Insurance – Has been around for a long time and will be there for a long time to come.
A lot of the smaller face life insurance policies available to seniors are whole life insurance policies.
This type of policy builds cash values over time and may offer dividends to you over time.
Sometimes a whole life insurance policy will be the best deal for you, other times there will be better options.
Universal Life Insurance – This is also a cash value type of insurance policy. As seniors needs have changed, universal life insurance policies have become more popular in the marketplace.
Universal life insurance policies may offer cash values, some may offer no-lapse guaranteed death benefits, and some may have riders available for things such as nursing care, or long term care coverage.
The appeal of some universal life policies compared to whole life policies is that the cost for coverage may be less expensive with a universal life insurance policy compared to a whole life insurance policy.
What to Expect from Seniors Life Insurance Underwriting:
When it comes to life insurance underwriting, some life insurance policies require full underwriting and a paramed exam.
Other life insurance policies are guaranteed issue life insurance policies, and then there are some life insurance policies that require some underwriting.
We will tell you upfront what the underwriting requirements are for each life insurance policy quoted.
Generally speaking, the most competitively priced life insurance policies will require full underwriting.
Some people assume incorrectly that if they have a health problem, that they should automatically go to a guaranteed issue life insurance policy…This may be a big mistake.
If you have health problems, we have a number of impaired risk life insurance companies available that are worth considering first.
A number of life insurance companies have introduced cognitive screening as part of the underwriting process for proposed insureds aged 70 or older.
You may be asked to complete one of these tests. The examiners will not help you with the test, but will tell you to read the directions and complete the test.
Some of the cognitive tests we have seen are:
Landmark Drawing Copy Test – The medical examiner will give you a sheet of paper that will have a picture of a clock with the time indicated on the clock.
The examiner will ask you to copy the drawing to see that you draw the circle, add the numbers to the clock, and to indicate what time it is.
Trail Marking Test – With this test, you will be handed a piece of paper. On this piece of paper you will see a bunch of circles with numbers or letters inside the circle.
You will be asked to draw a continuous line without lifting up your pencil, to connect the circles in order 1,2,3,4,etc.. or A,B,C,D. For some life insurance companies, you will be asked to connect numbers to letters in order. For example, A,1,B,2,C,3,D,4, etc..
The object is to draw a continous line from circle to circle until complete.
Delayed Word Recall Test – With this test, the examiner will show you 10 words usually on a flash card and ask you to use each word in a sentence.
Then they will have you repeat the 10 words in sentences again.
Later on during your paramed exam, the examiner will ask you to recall as many of the 10 words as you can.
Most life insurance companies will want you to take a brief paramed exam at the very minimum.
Your age and the amount of life insurance coverage you are looking for are the determining factors regarding what type of paramed exam is necessary in order to obtain life insurance for seniors.
We’ll tell you what the paramed exam requirements are for each life insurance company you are considering so that you may make an informed decision that is best for you before you apply for life insurance.
Some things to keep in mind when considering life insurance for seniors.
Many life insurance companies have introduce new underwriting requirements for insureds age 70+, requiring that the senior have no evidence of cognitive impairments, and also must have the ability to perform all activities of daily living.
If you have a health issue, please let us know or visit our health issues section for more information.
Would you rather discuss your request?
Call us today at Toll Free (800) 909-2040
At RiskQuoter.com our service is a no pressure, no obligation service.
We’ll give you the information you need to make an informed decision about your life insurance.