Finding affordable life insurance over the age of 55-65 can be difficult, because insurance companies take a greater risk when they issue a policy to someone of an older age, so they minimize the losses by increasing the price. However, this does not mean that finding reasonable life insurance policies for seniors is impossible. Whether you are looking for a term policy or whole life policy, the first thing you need to do is ask for the advice of an experienced agent who can find the policy that best suits your needs.
Term life insurance
There are many types of life insurance policies for seniors, including universal life, whole life and term insurance. The most suitable policy depends on your number of dependents, health condition and affordability. If you cannot spend much on life insurance right now, the best option for you would be a term policy for a limited period of 10-15 years. Although this policy provides coverage for a period of time between 1 and 30 years, it has a renewal option and some insurers even allow applicants to adjust the premiums after a few years. The downside of this policy is that it doesn’t accrue a cash value benefit and it only pays a death benefit if the beneficiary passes away within the time-frame. Term life insurance policies for seniors can be used to pay for college tuition, a mortgage, credit card debt, funeral costs and it is an easy way to fund a life insurance trust
The cover for a whole life or universal life insurance policies for seniors is more permanent and because it is designed to last for your entire lifetime it is a lot more expensive. Besides the high price, this type of policies have numerous benefits. Because your cash value grows over time, you can use it as a collateral to withdraw money or take a loan. Universal life policies cover schedule and offer a flexible premium payment. Some insurers even lower their price to people over 60 with a cholesterol level as high as 280 and a maximum blood pressure of 150/90.
Because the risk factor tends to increase with an elderly citizen, insurance companies use certain essential factors when they calculate the premium rates. The most common factors that affect life insurance policies for seniors include cholesterol levels, medical conditions, blood pressure, weight, height, smoking or drinking habits and age. An experienced agent should be able to lower your rates if you are in good health and take care care of yourself. Furthermore, if you have maintained healthy habits and don’t suffer from any disease, the premiums can be significantly lower.