The best life insurance for seniors depends on their age, financial obligations, health status, and other important factors. However, it's important to keep in mind that the whole life is often extremely expensive for older people. Because of this, term life is often a better option for people in this age group. Comprehensive life insurance, sometimes called permanent life insurance, pays benefits regardless of when the policyholder dies, as long as the policy is still in effect.
Most life insurance policies last the life of the insured, and some accumulate a cash value that can be distributed by cash payments in the form of a loan. Policy loans must be repaid while the policyholder is still alive or the loan amount will be deducted from the benefit at the time of death. For most traditional whole life policies, the death benefit and the insurance premium remain the same for the life of the policy. Because older people are likely to have health problems, it's especially important to work with a qualified life insurance advisor who can help you compare policies from several insurance companies.
Your reasons for buying life insurance for seniors should guide your decision about the types of life insurance you should consider. Penn Mutual can offer quality, low-cost life insurance for seniors, for both fixed-term and cash-value life insurance policies. Good life insurance rates, reliable policy illustrations, and low policy expenses are important to buyers of life insurance for the elderly. Seniors with a limited budget sometimes resort to burial insurance, also called funeral insurance or final expense insurance.
Since the maximum age for taking out term life insurance is 89 years old, people who want to have insurance over 80 years old should consider buying full life insurance. If you have health problems that hinder the requirements for term insurance, you should consider guaranteed universal life insurance, since it is a mix between term life insurance and comprehensive life insurance. This is known as a gradual death benefit. Guaranteed issuance life insurance is also expensive for the amount of insurance you take out, but it's designed for older people with health problems.
It's true that getting a good life insurance policy gets more difficult as you get older, but you can get certain types of life insurance well into your 80s. Older buyers of cash-value life insurance should also check out Midland because of the low costs of its permanent life insurance products at older ages. The price differences between a term life insurance policy and a comprehensive life insurance policy are marked. That way, if you die before making the final payment, your beneficiaries can use the life insurance policy to pay for the car.
Burial insurance, also known as final expense insurance, is available only in small amounts and is designed for older people with health problems and limited budgets. Once you're comfortable with a list of insurance companies, you can get quotes to find the best senior life insurance policy for you. The best life insurance companies for the elderly are Penn Mutual and Protective, according to Forbes Advisor's analysis of temporary and permanent life insurance for older insured persons.