Good Life Insurance Policy Options for Seniors - Zupnick Associates

(by Jordan Johnson)

With a life insurance policy, seniors can get coverage so their passing doesn’t burden their families with funeral costs and medical bills.

Everyone takes out a policy for different reasons, with younger people more likely to want to cover financial obligations like mortgages and dependent children. 

Those who take out a policy later in life are more likely to cover financial liabilities such as funeral expenses or perhaps to leave something behind for their loved ones. 

We have curated a list of policies that seniors are typically looking for and selected the best options based on their merits.

There Are Different Policies to Suit Your Needs

Life insurance policies tailored toward seniors are usually grouped into two main categories:

1. Term life plans

Term life insurance will cover the insured for a set number of years, which for seniors is typically much shorter than those offered to younger people. 

2. Permanent life plans

However, permanent life plans will cover the insured for the rest of their lives as long as premium costs continue to be paid on time.

Even though the premium costs rise as we age, policies are still designed and geared towards seniors. Those aged 70 and above are still eligible because of plans like these.

Final Expense Insurance

If you are looking for insurance to cover final bills, such as your funeral expenses, final expense insurance could be the best option. It’s technically used as a marketing term to sell smaller whole life insurance policies, but it has its advantages. 

Final expense insurance can provide the money needed to cover a range of possibilities, including: 

  • Funeral costs
  • Medical bills and outstanding nursing home costs
  • Credit card or personal debt
  • Providing monetary relief to your spouse or children after your death
  • Leaving something for your beneficiaries

Some providers, such as AIG, offer guaranteed policies that don’t require any medical examinations.

AIG offers coverage amounts from $5,000 to $25,000 to cover everything from funeral costs to other liabilities such as unpaid medical bills to reduce the burden on surviving family members.

Some living benefit riders, such as an accelerated death benefit, come free of charge with AIG policies but are capped at up to 50% of the death benefit.

Policies With Living Benefits

Living benefit riders are life insurance policy additions that could benefit the insured while they are still alive. This could be money for nursing home care or medical expenses for the terminally ill. 

Some plans allow the insured to receive money for a final vacation or other memory-creating experiences. Other policies may offer a waiver of premiums, allowing the policyholder to set aside the money usually spent on premiums for other matters.

John Hancock is a carrier with excellent living benefits and a range of add-ons with accelerated death benefits as a standard. If the insured is critically ill, they may access up to 25% of the policy’s value with accelerated death benefits for the terminally ill, potentially paying out 100% of the policy up to $1 million.

It’s possible to save up to 25% on your premiums with the John Hancock Vitality program by making healthy choices such as eating more nutritious foods or completing regular exercise. The program also offers a range of discounts on products that may help you lead a healthier lifestyle.

Options for Those Over 80

Life insurance options for those aged 80 and over are minimal due to the risk taken by insurance carriers, but that doesn’t mean you can’t find one.

That said, anyone looking for insurance who is over age 80 should be prepared to pay more and receive less.

Mutual of Omaha is a provider of policies for those over 80. They offer whole life policies for those aged up to 85 and they do not require a health examination. Seniors are eligible for a policy covering up to $25,000.

Additional benefits known as riders can be used to tailor your plan and offer you the level of protection you require, such as adding accelerated death benefits for the terminally ill.

Mutual of Omaha has a strong reputation, with J.D Power rating their overall customer satisfaction at 789 out of 1,000, ranking them fifth out of 24 insurance carriers. 

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