Senior Life Insurance

Life insurance companies offer life insurance cover for senior citizens as well. The investment requirements of senior citizens are not the same as younger individuals, who need to plan their retirement with such financial products, and therefore they need to set aside more monies. In addition, the senior doesn't have plan for longer periods. In case of senior citizens, expenses relating to health, financial responsibility of spouse, and funeral expenses are the main concern, and these need to be planned well. Unfortunately, many seniors do not know that they are eligible to purchase some senior life insurance covers.

Such life insurance for seniors has another advantage. Seniors can use their whole life insurances for passing some tax free estate to loved ones. This is possible because many of the states in the US do not collect inheritance taxes on any death benefit from senior life insurance policies. They also do not allow such benefit to be attached to any creditor's claims against the senior's assets.

Because the senior does not need to develop a large sum of money for retirement, the premium on senior life insurance policies is considerably lower. Both term, and whole life insurance products are available for seniors. Premiums on senior term life insurances are much lower in comparison to senior whole life insurances and senior universal life insurances. Those elderly who get only a fixed income at retirement might be better off with this type of policy as it is more affordable way to reduce some financial burden on loved ones after death. Funerals do cost a lot, and any money, however small, is still welcome to meet such expenses. For the rest of elderly, whole life insurances are certainly better. This is because health care has undergone drastic change in last couple of decades. Because of this, elderly might live longer than the term specified under term life insurances for them. Even though the premium on senior whole life insurances is higher than on senior term life insurance, the fact remains that any such premium does not increase with each year. It might, however, increase under term life insurances.
Most life insurance companies have started guaranteed acceptance policy for seniors. These insurance businesses also do not insist that the senior should undergo medical examination for determining the premium. However, while giving such policies, insurance company safeguards its interests by stipulating that if the elderly dies due to any accident, full death benefits as specified under the guaranteed acceptance policy would be paid. But if the elderly dies within two years of taking such life insurance policy, then only the premium paid to date with nominal interest would be given as death benefit. This provision prevents the elderly who are nearly on deathbed from taking advantage of guaranteed acceptance life insurances.

A less frequently used but more advantageous senior life insurance option is the single pay life insurance. Under this, the senior citizen can pay a lump sum to purchase the policy. This increases substantially in value, and enables the senior to pass the monies as death benefit to the loved ones, free of inheritance taxes. However, such payment of monies should not deprive the senior from having enough for comfortable living.