I don't know anyone who wants to spend more than they have to on anything. Do you? Life Insurance is definitely a place where we want to spend as little as possible! With that in mind, here are some things that can help you save money when buying a new life insurance policy. If you're thinking of getting affordable life insurance for seniors you have come to the right place.
Who can give me the best advice?
We often ask our friends or family members for advice when we are considering making an important purchase. They can be great resources. However, they may not be your best sounding board because buying life insurance is not like buying a new car and here's why:
- You can't negotiate the price.
- You can't get used insurance.
- You can't get any rebates.
- There are never any sales.
- What they bought may not be right for your needs.
- Life insurance for seniors over 80 is different than for seniors over 60.
Okay, so who can you talk to for good advice? An independent life insurance agent is your best advocate! It's even better if you find an agent who specializes in insurance for seniors. They can help you find the best policy to suit your needs at the lowest price you can get. It's always good to "ask an expert". An independent life insurance agent has the ability to check many different carriers to see where you can get the best value. There are small differences in underwriting guidelines from one carrier to another so your agent can find the company that will look most favorably on your personal circumstances.
How do I know what type of policy to get?
There are many reasons for needing life insurance. Generally, your reason for getting insurance is going to help determine if you need a term policy or a permanent policy. Let's start by making sure you know the difference!
- Term Coverage- We prefer level term policies. That means the face amount and the premium remain the same for the entire term period. You can choose from 5 years to 30 years (depending on your age). Once the level term period is over, the price for the coverage will basically skyrocket. At that point it makes financial sense to buy a new policy if you are still insurable. (Term policies have a specific period of time where you can convert them to permanent coverage without any underwriting. If you become unable to be insured or highly rated during that time, this benefit will help you remain insured.)
- Permanent Coverage- This includes both Universal Life policies and Whole Life policies.
- Universal Life-These policies will last your lifetime and can be structured so that there is no cash accumulation. These will be the least expensive permanent policies available. They generally start at a face amount of $25,000,$50,000 or $100,000 (depending on your age and what state you live in). These policies require full underwriting. The insurance carrier will check your blood and urine, and will order medical records (if they feel it's necessary)
- Whole Life- These policies will last your lifetime as well. Final expense policies are in this category and they allow you to get insurance without a medical exam. This coverage generally ranges from $2,000 to $40,000. There are several types of final expense coverage. With level benefit policies your coverage starts on day one. With modified or graded policies the coverage for medical death will phase in over two to three years (with accidental death covered on day one). With guaranteed issue coverage there are no medical requirements. They act like an accidental life policy during the phase in period.
If you are buying life insurance for seniors over 70, a term policy is usually not in your best interest. If you did a 10 year term, you would be in your 80's when it ended and coverage would be much more expensive and you would potentially find it difficult to qualify. As there are always exceptions, one of the times a term policy makes sense is if you are guaranteeing a loan or only need coverage for a few years. Talk to your agent to make certain a term policy is right for you.
For this reason we usually find a permanent policy- either universal life or whole life will meet your needs. There are a number of factors that will determine which type of policy is best for you.
- How much coverage do you want? If you want less than $ 25,000 your only option is a whole life final expense insurance.
- Want more than $25,000? Are you willing to take an exam? The whole life policies don't require an exam, but if you want a universal life policy you will need to have one.
- What is your health like? Will you qualify for a universal life policy? They require full underwriting and a review of your doctor records.
- A final expense whole life policy at your age has simplified underwriting and it is easier to qualify. These policies go up to about $40,000. If you want more coverage you would have to apply to multiple companies.
- If you are not insurable, you can still get coverage with a guaranteed issue policy which is also a whole life policy. There are no medical requirements for this coverage. All applicants are accepted.
How long does it take to get coverage?
Being that each type of coverage has different requirements they will each take different amounts of time to put your policy in force.
- Universal life insurance- These policies require full underwriting. You will need to take an exam and the insurance company will order medical records. These policies will usually take a minimum of 6 weeks to get approved because of the information the insurance carrier will need to gather.
- Whole life insurance- Final expense policies use simplified underwriting meaning there is no exam. You must be able to answer no to a number of medical questions. They will check a prescription database to confirm your answers. You can be covered in a few days time.
- Whole Life Insurance- Guaranteed Issue policies go in force usually withing a few days after the insurance carrier receives completed paperwork.
How to Get Affordable Life Insurance for Seniors
Looking for affordable life insurance for seniors? Here's what to do...
- Determine the reason(s) you need coverage.
- Find an independent life insurance agent you feel comfortable with.
- Discuss your needs.
- Your agent will explain the benefits of one policy over another.
- Find a policy to fit your needs and your budget.
- Sleep well at night knowing your family is secure.
The Bottom Line
When you are a senior looking for insurance, an independent agent is your best resource for advice. Independent agents represent many different carriers, many more than you can find quotes from online. Each person's personal needs and health will help determine the best policy type. Who better than a specialist to help you find the right insurance?