Q & A on Senior Life Insurance

Lenny Robbins
Aug 27, 2014 4:53:00 PM

When you begin thinking about life insurance whether it's for you or you are a family member I am certain you are going to have some questions. You may not know enough to even know what to ask! That's why an agent with experience with senior citizen life insurance can be very helpful. Use us and learn all you need to know to make sound decisions for yourself or another family member(s). Here are some of the more common questions people ask about insurance for the elderly.

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How old can I be and still get life insurance?

Believe it or not you can purchase a policy up to and including age 90. But it's probably a better idea to purchase it earlier. The older you are when you get a policy the higher the cost is. As we age we often have more health conditions and that can make it more difficult to qualify for a policy. The older you are, the less choices you have of different types of policies.

What kinds of policies are available?

You can get a 10 year term policy up to age 80, but it doesn't make much sense because what happens after you hit 90? Your coverage would expire and a new permanent policy (universal life or whole life) would most likely not be affordable. That's why we think a permanent policy is best for elder seniors. Additionally, you may be surprised to find that a permanent policy can cost about the same or sometimes even less than a term policy at this age! 

Which policy is best for me?

What are you trying to accomplish with this coverage? That's the first thing to consider. Then we would look at your ability to qualify for each type of policy. Universal life is general less expensive than whole life because it doesn't have to generate cash value. You have to be able to qualify with full underwriting and be willing to have a paramedical exam. Many simplified issue life insurance policies have no requirement for a medical exam and the underwriting is easier.

Does the cost go up once the policy is in force?

The insurance policies we prefer for seniors are guaranteed to keep the premiums the same for your lifetime. We also prefer policies where the insurance amount remains the same for your lifetime. There are other options but we don't think they make any sense for you.

I'm a cancer survivor. Can I get coverage?

It's certainly possible to get life insurance after having cancer. It depends what type of cancer, when you had it. What the treatment was. Are you cancer free now? For how long? We have helped many people get life insurance after cancer. It's important to know the details of your cancer, then we can talk to our independent underwriter and come back to you with options.

Is the company reliable?

Insurance companies are regulated by state agencies. They have to keep cash reserves on hand to pay potential losses. There are independent companies that rate carriers. We only work with carriers rated A- or better. 

If my health changes can they increase my premium or cancel the policy?

Absolutely not. Your life insurance policy is what we call a one sided policy. This means as long as you pay your premiums in a timely manner the insurance company cannot change or cancel your policy. Only the owner of the policy can make changes. The only time an insurance company can cancel your policy is if you don't pay your premium.

Are there any benefits while I'm alive?

There are riders that allow you to access part of the face amount of a policy if you are critically ill or terminally ill.  Although it would lower the amount of insurance your beneficiaries would receive, this money can make your final months much easier. You don't have to use it, but it's there if you need it. (These benefits are not available in all states or on all policies. If this feature is important to you be sure to tell your agent.)

Bottom Line

An independent agent will have more plans for you to choose from than a captive agent. They will be aware of special options a carrier may offer that can save you money on your policy. Most importantly don't be afraid to ask questions. A good agent wants you to understand what you are buying and why it is the best option available for you or your loved one. Looking for senior life insurance? Talk to someone today!

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