Life insurance options seniors may not have known
Smiljana Aleksic/Getty Images
When purchasing a financial product or service it’s imperative to do your research. With so many different companies on the market currently, it can become difficult to determine what’s beneficial and what you’re better off skipping. This is true for a wide range of services, including life insurance. While life insurance is considered critical financial protection for millions of adults it still needs to be approached carefully and smartly.
For seniors, many of whom rely on retirement savings and Social Security, it’s especially important to make the right life insurance decisions. Despite conventional wisdom, life insurance for older adults can be worthwhile and relatively inexpensive. For it to be both, seniors need to be familiar with the intricacies of this particular insurance type.
If you’re a senior in the market for life insurance or know someone who is then start by getting a free price quote so you know exactly what to expect.
Life insurance options seniors may not have known
Here are three life insurance options seniors may not have previously known about.
They can skip the medical exam
The traditional life insurance application process includes a medical exam conducted in person by a medical professional. This is similar to the annual check-up many patients complete with their primary care physician. Bloodwork is completed, urine is tested and blood pressure and heart rate are monitored and noted. A positive life insurance medical exam can go a long way toward securing a policy but one with poor results could negatively impact approval and may even disqualify the applicant altogether.
Fortunately, seniors and other people concerned about the results of a medical exam can bypass it altogether and proceed with a no-exam life insurance policy instead. This kind of life insurance can be coupled with either term or whole life insurance types and it’s guaranteed – since there’s no exam included there will be nothing to disqualify or hamper coverage. It may come with a slightly higher price tag than regular life insurance but that bump in price could be worth it if the alternative is not having a policy at all.
Get a free online price estimate today and see how much you’re eligible for.
They can have their payments returned
Life insurance payments can add up month over month and year over year. And if you outlive your term policy the payments you made will be gone. However, there is a rider you can add to your plan that will give you back your money should you outlive the pre-determined time frame.
A return of premium rider will give you your money back after your policy has expired. This is an especially important option for seniors with a family history of good health and longevity. It’s also helpful for seniors who may want a term policy for now but know that they won’t need it after the time frame ends.
As with many riders, a return of premium option will tack on an added cost to the policy but it’s generally worth it since seniors know they’ll be getting their money back when their coverage concludes.
A policy can supply retirement income
It’s always helpful to have an additional source of income, particularly when you’re retired. Whole life insurance policies allow the insured to access their payout amount to use as cash while alive. This can be for household repairs, to pay for college tuition, or anything else the insured would otherwise use a credit card or personal loan for. Policyholders won’t have to give up their coverage or their death benefit by going this route, although the ultimate payout will be short the deducted amount until it’s paid back.
Because of the cash factor – and because the protection lasts for the policyholder’s whole life and not just a specific time frame – whole life insurance tends to be more expensive than term life insurance. That cost may be worthwhile, though, if policyholders know they can access funds as needed in the future.
You can get a free life insurance quote now or use the table below to start researching some top providers on the market.
The bottom line
Life insurance can provide critical financial security for policyholders and their loved ones. It can be advantageous for adults of all ages, even seniors.
For older adults to get the most out of their plan it helps to know the ins and outs of this insurance type. Seniors worried about the results of a prospective life insurance medical exam can forego it altogether and go the no-exam life insurance route instead. They can also get a return of premium rider if they’re concerned about paying for a policy they wind up outliving. And, those who go with whole life insurance, can count on it as another source of retirement income if needed.
MoneyWatch: Managing Your Money
More
More
No Byline Policy
Editorial Guidelines
Corrections Policy
Source