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Questions Seniors Should Ask About Life Insurance

 October 6, 2014  /  Comments Off on Questions Seniors Should Ask About Life Insurance

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Buying life insurance should be something not considered lightly at any age, even if you’re a senior. And the fact that you may be higher in age places even more weight on the importance of choosing a policy that will benefit you.

Many seniors are of the opinion that they’re too old to be able to qualify for life insurance. But the truth is that you do have options. If you are a senior and you have family who depend on your income for their survival, then you will have to do some research and decide whether a life insurance policy will make financial sense.

Questions Seniors Should Ask About Life Insurance

Reasons for Getting Life Insurance

When thinking about the policy you need, it’s important to also think about why you want to get a policy. Some of the more common reasons are:

  • To ensure your family has sufficient income to replace your own when you pass on;
  • To cover final medical expenses;
  • To cover funeral and burial expenses.

If you are only looking for coverage that will provide you with enough to cover a funeral service, then you may not need the coverage or cost of a full policy.

Life Insurance Options for Seniors

Basically, there are two insurance coverage options available: term, and permanent (also called whole) life insurance. Term offers coverage for a limited time, while permanent insurance will cover you for as long as you are alive.

There are also options for seniors wishing to ensure specific coverage, such as for funeral expenses. These ‘pre-need’ policies are usually accessible by visiting a funeral home and speaking with its director.

What to Consider With Senior Life Insurance Policies

While term life insurance provides you with the stability of making the same monthly payment amount and can be much more cost-effective, many life insurance companies refrain from allowing people at a certain age to obtain it, simply because the older an applicant is, the less likely they may be to survive to the end of their purchased term.

Permanent insurance provides peace-of-mind that you will be covered until you pass away, but the premiums of this type of policy can be much higher than the cost of term insurance.

Pre-need policies do offer a smaller payment and will cover your funeral expenses even if they go up, but you may be paying more for the policy than what it will end up covering.

Guidelines to Follow When Choosing a Policy

It’s an unfortunate truth that senior citizens are among those most vulnerable to insurance scams. But you can avoid becoming a victim by ensuring you do all of the following.

  • The most important thing is to not feel pressured to decide on one type of policy or another. If your insurance agent is trying to press your decisions before you’ve had the chance to carefully review your options, this could be a sign that you need to find another agent.
  • Any meeting with a new insurance agent should be preceded by some research on your part to ensure the new agent is properly licensed to conduct business in your state.
  • Getting everything in writing, especially your insurance proposals, is critical. Not only will having physical documents give you something tangible to review, but they will also provide proof of what an insurance agent has told you about a particular policy, giving you leverage if amounts or terms change.
  • Full disclosure is key, and requesting full disclosure from your insurance company is a good idea. But be specific. Ask for full disclosure of all charges that may be incurred as a result of switching your policies, as well as for all information involving the benefits of your policy.

Guest author Adam Foley writes of a variety of topics, particularly related to the life insurance industry.  He recommends lifeinsurancecompaniesbystate.com as a resource for consumers wishing to ask questions about life insurance.

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  • Published: 3 years ago on October 6, 2014
  • Last Modified: October 6, 2014 @ 5:51 am
  • Filed Under: Finance, Legal

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