Senior Life Insurance
Because all senior life insurance plans are variations of whole life insurance policies, there are a few options available that aren’t offered through traditional life insurance policies. Senior life insurance policies have health and age qualifications that are designed specifically to allow seniors the ability to qualify for coverage.
There are two main kinds of life insurance for seniors: Immediate plans and Limited plans. Each type of insurance offers a range of plan options to help policy holders get the correct type of coverage at a price they can afford. To speak with a specialist, call 800.260.8919 or click the “get free quote” button to request more information about life insurance for seniors.
Immediate Benefit Plans
Immediate benefit plans are policies where the total value of the policy is available immediately. While each senior life insurance provider will offer different types of immediate benefit plans, there are a few main options that most companies will offer:
1. Super Preferred Whole Life (Platinum Plan)
The super preferred whole life plan is available for people age 40 to 80 who have no health issues and who have not used tobacco products in the past five years. The gold whole life plan is typically offered in policies ranging from $5,000 to $30,000 in $1,000 increments.
2. Preferred Whole Life (Gold Plan)
This option is easier to qualify for and is for people age 0 to 80 who may have minor (non-terminal) health issues and who have not used tobacco within the past 12 months. Plans range from $1,000 to $20,000 in $1,000 increments.
3. Standard Whole Life (Silver)
The most common kind of life insurance for seniors, this plan covers a wide range of applicants and has minimum health and age qualification standards. Plans are available starting at $1,000 up to $20,000 in $1,000 increments.
4. Substandard Whole Life (Bronze)
This plan is available on a limited basis to residents of Massachusetts and Minnesota only. This plan covers applicants with small to moderate health issues as well. Policies offered are much lower compared to other options, with plans maxing out at $5,000.
Limited (Graded) Benefit Plans
Limited (or graded) benefit plans are options for people with mild or moderate health issues and accrue value over time. There are three main options:
1. Guaranteed Whole Life
This plan offers guaranteed acceptance of coverage to all applicants between the ages of 0 and 85 years. Enrollment in this plan option requires no health qualification. During the first three years of coverage, the plan offers 110% payback of all premiums paid, and then offers the full face value in the 4th year and beyond. Plan values range from $1,000 to $10,000.
2. Modified Whole Life
This life insurance plan is offered for those with mild to moderate health conditions and offers limited benefits with a 110% premium repay during the first three years, then full policy amount beginning in year four. Plans range from $1,000 to $10,000.
3. Graded Whole Life
This plan is available only in Missouri and Arkansas. It is available for those with mild to moderate health issues and is available in plans of $1,000 to $10,000. The graded plan offers a growing amount of value each year you continue to pay your premiums until if fully matures and offers you the full face value starting in year three.
- Issued to those age 4o to 85
- Year 1: 50% face amount
- Year 2: 75% face amount
- Year 3: 100% face amount
Selecting and Purchasing the Appropriate Senior Life Insurance Policy
When considering a senior life insurance plan, remember that you will have several options to choose from. Making an inventory of your personal needs and concerns before you start shopping will help you make an informed purchase and avoid spending more than you need to on a policy.
As you consider you needs, keep the following points in mind. These will help save you money on your policy and will help you make the best purchase:
1. Select an Appropriate Coverage Amount. Most people opt for too much or too little coverage the first time they buy life insurance. When determining the amount of coverage that you want, think about the three F’s: Funeral, Family, Finances. How much do you need to cover the cost of your funeral? How much money do you want to leave your surviving family members? And what is the current state of your finances? Will you need to leave some money behind to pay off bills or a mortgage? Thinking about these needs will help you determine an appropriate coverage amount.
2. Improve Your Health. Insurance providers offer cheaper plans to those who have good health when compared to those with existing health conditions. Some ailments cannot be avoided, but issues such as body weight, blood pressure, and cholesterol levels can be influenced by healthy eating and living habits and will play a large role in your consideration for a life insurance policy as well as determining your policy’s cost.
3. Improve Your Credit Score. If you have fair or poor credit, you will have a more difficult time qualifying for a life insurance policy than somebody who has good or fair credit. Since credit is a rating of your trustworthiness to repay money or make structured payments, senior insurance companies have the option to charge you more or less depending on the quality of your credit score. Paying all of your bills on time, lowering your credit card debt, paying off your mortgage, and saving money are all great ways to improve your credit and get a lower monthly premium on your insurance policy.
4. Talk to a Professional. Calling one of our specialists or filling out the form above to request more info is the best way to compare available life insurance for seniors and discuss different costs and coverage options. Without speaking to a professional, you will only be speculating to how much exactly your policy will cost and how much coverage you can qualify for. Once you have decided what your personal insurance needs are, pick up the phone and call 800.260.8919 to speak with a specialist or fill out the form above to request more information.
Protecting the Things you Love
Life insurance is a selfless purchase that will benefit your loved ones and provide them with financial assistance and comfort in the event of your death. Making sure that they are protected by purchasing a life insurance policy is a great way to secure their financial future. Protect yourself and your loved ones by researching insurance policies and purchasing a plan that fits your own specific needs.