Potential Downsides Of Whole Life Insurance
While whole life insurance may seem straightforward, there are things to know:
Be sure that whole life insurance is the right fit for your financial plan and that you will be able to afford the premiums in the future.
Before terminating a whole life insurance policy because you cant afford it, consider changing your dividend options. For example, you can change the dividend option to reduce/pay premiums rather than purchasing paid-up additions. This will lower your net outlay, although your cash value and death benefit will increase at a reduced rate. Another option is that seniors may also be able to sell the policy for more cash on the life settlement market.
Can I Outlive My Insurance
While it is unlikely, even permanent life insurance plans can expire if you reach a certain age. Its called maturing, and depending on your policy, that could happen at age 95, 100, or even 121. When a plan matures, you receive all the cash value the plan has built, and it ends. Since youve already received the full value, there isnt an additional life insurance benefit when you pass. Be sure to consult an agent to see when your plan matures if you are worried about outliving it.
How To Choose The Best Whole Life Insurance For Seniors
Like many people who have reached their senior years typically retirement age or at least 62 years old you might be wondering how you can be sure that youre providing the best financial protection for your family now and in the future.
The idea of purchasing a whole life insurance policy has probably come up. Still, you might not be sure if this type of life insurance is the right option for you and your loved ones. Even if you decide that whole life insurance makes sense for your particular circumstances, there are different coverage options and whole life policies to choose fromand you might not be sure which direction to take.
This article offers the information you may need to make an informed decision about purchasing whole life insurance and covers the best life insurance for seniors.
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Nationwide Wins With Happy Customers And Three Free Living Benefits
The best whole life insurance companies are financially stable, provide excellent customer service, and make the buying process transparent and easy. If you can afford it, you may get your entire death benefit covered with a whole life policy. Or, you could pair the long-term nature of whole life with a term life insurance policy to increase your overall death benefit. While you can get term coverage online, you’ll need to speak directly with an agent to get a quote for whole life insurance.
Sample Life Insurance Rates For Seniors
Sometimes its hard to know what to expect, price wise.
A senior life insurance plan, by default, will be more expensive than a younger persons, because life insurance rates are based largely on age.
The older a person is, the more expensive they will be to insure, per thousand.
Here are just a few sample life insurance prices for seniors based on different policy types.
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How Much Can I Afford
Everyone is blessed differently and some people have the means to give a lot while others can only afford small amounts of money.
However, death strikes all sides of the financial divide indiscriminately but what remains is that both people deserve a decent send-off.
Before taking up the funeral policy, it is good to determine what you can be able to give on monthly payments without having to get strained financially while at the same time getting value for your money.
You need to go through the policy guidelines given and the insurance plans provided and decide the plan best suited for your financial situation. You can also determine the need you would get from the family in paying the insurance plan.
The biggest tragedy is starting an insurance program and then having it halted due to financial reasons because all the death benefits become forfeited and you have to start again or you might just lose hope.
Term Life Insurance For Seniors
Term insurance pays benefits only if death occurs during the term of the policy, which normally is from one to 30 years. Most term policies do not offer any other additional benefits. Term policies usually come in two types: level-term , or decreasing-term . Healthy men over 70 can expect to pay $122 to $435 for a ten-year term life insurance policy with a $200,000 death benefit. And healthy women will pay between $66 and $194 for the same policy.
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Whole Life Insurance Has Tax Advantages
There are some significant tax benefits for having whole life insurance. Usually, the death benefit is tax-free. Furthermore, the increase in whole life insurance cash value is tax-deferred if you forfeit your whole life policy and cash out the money, you will just owe growth tax. The amount you have invested into your policy will still be taken tax-free. In addition, you can get a sum of your money without paying taxes.
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Reasons To Consider Buying Whole Life Insurance For Seniors
There are many benefits that are accrued to the burial insurance cover and they cannot be understated.
However, before picking up the policy you need to understand the reason you are taking up the policy and if you are best suited for it.
To see if you need the insurance policy and that it is the right choice for you, there are some questions that you need to ask yourself.
Top 10 Best Life Insurance Companies For Seniors
Here are the Top 10 life insurance companies for senior citizens. (Actually we have 13, but Top 10 sounds better!
Here are, what we believe, are the best life insurance companies for seniors. Lets look a little deeper into these life insurance companies for seniors and why they are in our top 10.
They offer whole life insurance, term life insurance and life insurance riders that will fit your needs. The following life insurance companies are considered the very best of life insurance providers for those who are age 65 plus.
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How Does Whole Life Insurance Work For Seniors
Older people may think they arent eligible for whole life insurance due to their current health or medical history. While, in some circumstances, these factors can cause an individual not to be insurable, there are several ways that someone in their later years can qualify for whole life insurance.
It all begins with the application process. Along with providing your contact information, youll need to answer some questions about your finances and your medical history.
Once you get an initial quotean estimate of what youd owe for the policy benefit amount you wantthe policy will go to underwriting. Depending on your age and how you answered the health questions, you might be asked to undergo a medical exam.
After receiving all the information needed to assess your eligibility, the insurance company will decide whether you qualify for a particular policy and how much it will cost.
Naturally, premiums are typically higher for older individuals.
If, for example, youre in your 50s and want a policy to cover all your medical bills and final expenses and serve as an inheritance for children and grandchildren, whole life insurance will likely be a good fit.
People in their 60s might be re-evaluating their current investmentsincluding any life insurance policiesto see if theyre still needed or sufficient for what their family might need should they die.
The 5 Main Benefits Of Whole Life Insurance
There are many styles and kinds of life insurance coverage plans available to cover your family members when you pass away. Permanent life insurance policy indicates that as long as you are able to pay your premiums, you never have to stress about your plan or policy expiring.
But as you learn more about life insurance, you are most likely to discover that there are several plans and coverage types that have something more than just a death payout.
Whole life insurance is mainly about a death guarantee for the individuals who rely on you, it can be a vital factor of a financial plan, through the advantages life insurance can provide while you are still alive.
What are the advantages of whole life insurance though? Read on below.
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State Farm Whole Life Insurance Review: 4/5
State Farm standard whole life insurance has a minimum face value of $100,000.
State Farm Limited Pay whole life insurance has the same features of their standard policy, for either 10, 15 or 20 years. Since these are not paid throughout your whole life, this policy is even more expensive.
State Farm Single Premium whole life insurance is exactly like their standard policy, aside from the fact that it can be fully paid for when starting the policy on a single premium payment.
Pros
– Online whole life insurance quotes
– Policies can be surrendered for a portion of the policy value on a fee
Cons
– Doesn’t provide the cheapest whole life insurance quotes their term life insurance is much cheaper with the same coverage level and death benefit, averaging around $20/month
Best for: Customer experience
Read more: State Farm Insurance
Lifescape Simplified Whole Life Insurance
- LifeScape Simplified Whole life is a Final Expense policy
- If youre between the ages of 0-80, you can apply for level death benefit
- For ages 40-80, you can apply for Assuritys graded or modified death benefit
- Death benefits range from $5,000 to $50,000
- No exam policy for up to age 80, but you need to answer health questions.
- If you answer no to all the application health questions, you can qualify for their level death benefit coverage
- The qualification of Assuritys Graded and modified death benefit is determined by application health questioned answered yes
- Guaranteed cash values are guaranteed
For more, see our Assurity Life insurance company review
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Term Life Insurance In Dallas Tx
The Texas Department of Insurance defines term life insurance as a life insurance policy for which premiums are paid for a specified term of years. Term life insurance policies do not have a cash value component, which means that the death benefit is the only payout you will receive.
Most term life insurance policies are renewable, meaning that you can continue your coverage beyond the initial term by paying additional premiums. However, at each renewal your premiums will be higher, because they are based on your age and health at the time of renewal.
Some insurers also offer convertible term life insurance policies, which allow you to convert your policy to a whole life or universal life policy at some point in the future, without having to undergo a medical exam.
Transamerica Life Insurance Company
Our all-around best company for senior life insurance is Transamerica Life Insurance Company.
Already on our list for one of the best burial life insurance companies and our list of overall top carriers, its no stretch to see them as a top solution for seniors when you consider their entire lineup of products.
Transamerica has everything from simplified final needs options up to fully underwritten choices for more complex scenarios.
Whether you require a small death benefit and want to skip the medical exam, or you and your spouse need long-term estate planning with the use of a universal life insurance product, Transamerica Life can help.
Backed by more than 110 years in the business, they are a long-standing, secure company.
A.M. Best, Fitch, Moodys, and Standard & Poors all agree, having awarded the Transamerica Life Insurance Company A or better ratings across the board, something few carriers achieve.
The ability to add accidental life or even long-term care insurance makes Transamerica even more attractive.
More than a century old, Protective Life offers some of the best value on the market, dollar for dollar, especially for guaranteed universal coverage.
A top rated, trustworthy carrier, Protective Life offers several options within the universal life insurance realm.
Their life insurance plans for seniors are customizable and competitively priced, and Protective Life has selections for both individual and survivorship plans.
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Why Should I Consider Whole Life Insurance For Seniors
As you enter your golden years, you may no longer have a need for a large amount of life insurance. Your kids are likely grown and independent, and your spouse wont be relying on your income. Life insurance is still important, though. Smaller whole life policies for seniors can help your family with several common end-of-life costs. Here are a few reasons you should consider one:
Best Guaranteed Acceptance Whole Life Insurance For Seniors
If youre unable to qualify for a fully underwritten or simplified issue life insurance policy but still need coverage, guaranteed acceptance whole life insurance is always an option. Just keep in mind that these policies come with a waiting period, or graded benefit, meaning your beneficiaries wont receive the full death benefit if you die soon after purchasing. Typically, your beneficiaries will just receive the sum of premiums paid plus interest.
While all guaranteed acceptance whole life insurance policies are relatively expensive and limited in terms of coverage options, some have particularly restrictive terms and high quotes. Weve researched insurers to find the best guaranteed issue life insurance options for seniors.
Mutual of Omaha also offers competitive rates for guaranteed issue whole life insurance, as well as a wider range of death benefits. You can purchase as little as $2,000 in coverage, with a maximum of $25,000. Mutual of Omahas waiting period is also two years, but beneficiaries would receive 20% interest on top of premiums paid during that time.
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Best Life Insurance For Living Benefits: Prudential
Prudential is also our top pick for people who want more living benefits options in a policy. Living benefits allow you to pay for qualifying medical care using part of your policys death benefit, but many riders only apply to a terminal illness. Prudentials living needs benefit rider is included at no cost and offers access to 70% to 100% of the death benefit depending on the diagnosis to policyholders who are terminally ill, expected to permanently reside in a nursing home, or who need an organ transplant.
How Much Does Life Insurance Cost For Seniors
Generally, the cost of a life insurance policy for seniors varies depending on age, gender, policy type and coverage limits. For example, a 10-year term policy with $250,000 coverage costs the average 60-year-old $82.56 per month, while the same policy could cost a 70-year-old $220.26. As coverage increases, so do monthly premiums. The average 60-year-old pays $55.76 per month for a $10,000 coverage guaranteed acceptance policy a 70-year-old pays $91.25 for the same coverage.
Be sure to compare life insurance quotes from several providers to ensure you’re getting the most affordable rates available.
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Is Guaranteed Issue The Best Type Of Life Insurance For Seniors
Guaranteed Issue life insurance, for many seniors, is the best policy to go with. One, its much easier to get vs other kinds of life insurance. If you have medical issues or a preexisting health condition, you can still qualify for this policy quite easily because there are no health questions.
Important! There are 2 major things to point out with Guaranteed Issue life insurance policies.