The majority of senior residents of North America are not able to afford long-term care due to the high cost. Only a few seniors use their insurance to cover the expenses for long-term care. This is a serious issue; too many seniors are unprepared for these costs, leaving them and their families at financial risk. There is a solution: purchasing life protection can help cover all possible expenses for long-term care. There are also several other advantages of purchasing life insurance for seniors; find out about these below.
Married elderly couples are often anxious about leaving their better halves with debt after passing away, and for good reason. Funerals in countries of North America are quite expensive - they can cost as much as $5,000 or more. Not every family can afford these costs, and that is why life coverage comes as a practical solution.
Life protection policies can fully cover the expenses of the funeral and burial of one spouse, and that coverage can bring some peace of mind to the insured person. Covered by a life protection policy, the individual can be sure that his or her significant other will receive the necessary support to deal with the financial side of a funeral.
Life insurance for seniors makes it simpler to deal with the expenses of a funeral, and that means the financial pressure does not add to the already-stressful situation.
A lot of the insurance companies that provide traditional life protection policies often refuse to provide life protection for seniors who have pre-conditions. A serious illness poses a high risk to your life, not to mention the fact that advanced age also contributes to that increased risk. These are the main reasons an insurance company will decline your life insurance application.
Having a pre-condition does not mean you are left without life coverage at all, though. There are many insurance companies that do provide insurance for people who cannot or do not want to undergo a health exam. This type of insurance, often called no medical life insurance, does not require a medical examination for qualification; however, this feature also makes the price of this type of insurance higher, compared to a traditional life protection policy.
There are two types of life insurance policies that do not require a health exam: guaranteed issue and simplified issue. Guaranteed issue insurance plan requires no medical tests and no medical questions; that means that you are approved for this insurance automatically, but you will have to wait two years before the policy starts to work. Simplified issue insurance requires you to answer a series of questions, but there is no medical examination, and the policy provides coverage from day one.
When compared to whole life policies, one of the most significant characteristics is the low premiums associated with it. Whole life policies often carry higher premiums when compared to similar coverage in a term policy. Because there is a fixed period the insurance covers, the risk to the insurance company is lower than with a whole life policy. They pass that lowered risk along to the consumer in the form of lower premiums. Another reason for the lower premiums is the fact there is no accumulated cash value to the policy. The insurance company uses the premiums to cover the face value of the policy. There is no need to handle investments on the money for the benefit of the consumer.
No cash value means that if the named insured is still alive when the policy ends, there is nothing recovered for the premiums put towards the policy. There is also no ability to borrow against the value of the policy since it holds no real value until the named insured dies. Another significant characteristic is the fact that the policy does have an end date. Most policies go for various 5-year increments such as 10, 15, 20, or 30 years. But, many companies can write policies for other term lengths as well.