|Posted on November 15, 2012 at 11:15 AM|
What is Senior Life Insurance?
Senior Life Insurance is whole life insurance that is mostly purchased by seniors to cover the costs of funeral expenses, and other final expenses when they die. This type of life insurance is still commonly known as final expense life insurance or burial insurance, but “senior life insurance” is a more pleasant term to hear. A typical senior life insurance policy is from $10,000 to $20,000 of insurance protection. Smaller coverage amounts are also used to cover a lower cost cremation service.Consider a senior life insurance plan as a mini whole lifeinsurance policy with a specific purpose – covering final expenses. Therefore this type of insurance has the same benefits of a whole life insurance policy 1) can keep the insurance your whole life 2) your policy builds cash value 3) you canborrow against the cash value if you need to if the cash value is large enoughand 4) the death benefit is paid out toyour beneficiary tax-free.
Senior life insurance has gotten very popular since the widespread use of term life insurance. It used to be that young families would buy a large whole life insurance policy to cover their needs and then they kept it in force until they died. Whole life insurance was much cheaper at this time and so it was used in this way. Since the introduction of term life insurance,families have started buying term life insurance in their younger days to cover children, college expenses, mortgage, and other large expenses. Once the caregivers are older and their term policies have ended, they find a small Senior life insurance policy to cover their current needs. This is a muchbetter way to use life insurance because you are changing your life insuranc eas your needs change, so you are never over-insured, and it is less expensive.
Cost of Burial
Most advertising you see on television from insurance companies like Colonial Penn and AARP or print materials will suggest the price of $6000 for the average cost of a funeral. The averagecost of a funeral, however, when all things are said and done is more like $10,000. This is because the price given in ads and sometimes from the funeral director does not include some hidden fees. The total cost of an average funeral can be broken down into 3 parts: the funeral director fees, the cemetery services, and the headstone. $6000 may cover the funeral director but between the cemetery and the headstone you may be looking at another $4000 dollars.
Prepaid Burial Plans and Senior Life Insurance
There are advantages and disadvantages of using PrepaidBurial Plans over Senior Life Insurance in order to pay for your final expenses. A prepaid burial plan ensures that your wishes will be specificallylaid out on how you want your burial service to proceed. This allows your lovedones to be free of having to plan your service while they are grieving.However, if your burial plan is not fully paid for when you die, or the cost ofservices increased significantly there may be some overages that your lovedones would still have to pay. Also, if you move your burial plan may not betransferable. The cost of canceling your prepaid plan could be up to one thirdof the funeral service cost. A Senior life insurance policy can cover your final expensecosts from day one and gives you the flexibility you need for the changes inlife. It is important with a life insurance policy that you let your loved onesknow in your will what your wishes are concerning final wishes.
How much does Senior life insurance cost?
Senior life insurance can be very affordable. Of course, theyounger and healthier you are when you decide to purchase a policy the less youare going to pay. The cost of buying a Senior life insurance policy is lessthan getting a regular whole life insurance policy and selecting a low death benefitamount. To get a Senior life insurance quote click here.
Do I have to qualify?
The short answer is yes. With all life insurance plans thereis always some level of qualification necessary to be issued a life insurancepolicy. With Senior life insurance you have the option to select a simplifiedissue Senior life insurance policy or a guaranteed issue Senior life insurancepolicy. Simplified issue Senior life insurance policies ask just a few medicalquestions to determine whether or not you will qualify and there is noparamedical (blood and urine)to be done. Guaranteed Issue Senior life insurance policies ask even less medical questions (usually 3 or 4) to determine if you qualify for a life insurance policy.If you are very healthy and take very little to nomedications, and you want to save money, your best choice would be to select a policy with paramedical underwriting. The more the insurance company is comfortable about your health outlook the lower your premiums are going to be.
This is the reason is important to buy Senior life Insurance from a Final Expense broker like www.burialinsurancerate.com You can compare prices with over 20 companies and find the best rate for your age and health!
If you don't want the hassle of going through medical underwriting or you may have a few health issues you feel the insurance company may pay attention to, your best bet may be a simplified issue life insurance policy. Just answer a few questions and the insurance company will take your answers, do a little searching on your medical history, and then give you ananswer “yes” or “no”, usually within 24 to 36 hours.Guaranteed issue is an option when there are major concerns about your health situation so the less questions the better. Usually, there are 4 questions to answer in the paperwork, and the insurance company againwill make a determination on whether you qualify or not based on your answersand medical history.