Best Types of Senior Life Insurance

The reality is that not only is there an emotional impact to the family because of a loved one's death, but there also is a financial impact. The financial impact can be quite high, and a senior should seriously consider whether they need life insurance to protect their loved ones from this burden.

There are many benefits to obtaining senior life insurance. The policy allows family members to have money to cover burial costs and also to pay off any outstanding debts that are left once the senior passes away. In addition, some senior's policies allow for a savings component that can be borrowed against.

Senior life insurance can usually be obtained for people between the ages of 55 and 75. There are several different types of policies available:
• Term Life
• Whole Life
• Single-Pay
• Guaranteed Acceptance

Term life is best for seniors who are on a fixed income and view the insurance as a way to provide financial security to their family, as opposed to an investment option for them. Term policies are taken out for a fixed number of years. Whole life policies, alternatively, are taken out for the life of the purchaser. With today's lifestyle and better medical care, people are living longer and longer. A whole life policy protects the person so that they do not out live the term of the contract.

These are the two basic types of policies. The other two: single-pay and guaranteed acceptance, are really options that are particular to senior life insurance. A single-pay policy is one that has only one premium payment. It is for people that have accumulated a sufficient amount of wealth and can afford to make the one off payment. The benefit to this type of policy is that the value can increase rapidly in a short amount of time. In addition, the policy can be set up in such a way that the death benefits to the beneficiaries are tax free.

Guaranteed acceptance life insurance means that the person can buy the policy without needing to have a medical exam. Death benefits are limited if the policy holder dies within a few years of the policy being taken out. After the initial waiting period, the beneficiaries will receive full benefits. In the case of an accidental death, the full benefits are paid regardless of the time that has elapsed.

For a senior to understand what the best policy is for them, they should do their research thoroughly and calculate exactly what levels of coverage they require. To do this a person should look at their family's current standard of living and how much income and savings they have. They should then consider how much of this amount will disappear upon their death. The difference between what is left and what is necessary is the amount of basic coverage that is required. A person should also consider any one-off expenses, such as funeral fees and estate administration fees, which would be associated with their death. These levels should then be added to the amount above so that the correct coverage can be determined.