YOU ASK:

Is there life insurance that is specifically for seniors? How does it work?

WE ANSWER:

Yes, there is!

The good news is that seniors or those aged 65 to 85 can still avail of life insurance coverage. And even if you have reached this age range, it is not too late to buy life insurance for yourself.

In the past, life insurance companies shied away from offering coverage for seniors, which is quite understandable, as they would like to avoid high-risk exposures. However, most states require that life insurance companies should offer life insurance (with guaranteed acceptance) to seniors. These are usually short term coverages, which will pay a specified amount if the insured dies within two years. After this waiting period, the insured's beneficiaries can receive the full death benefit.

Admittedly though, the premiums for those who are buying life insurance during their senior years will be much higher. Also, when you buy insurance at this age, the allowable policy amounts are smaller. That is why it is wiser for you to buy life insurance while you are young, and maintain this coverage up to your old age.

Senior life insurance is basically designed to help you and your family pay for end of life expenses - this includes hospital bills, as well as funeral and burial costs.

The good thing about life insurance offered to seniors is that most don't require health exams. You can be assured that the life insurance company will accept your application, subject to certain limits allowed by the state.

A senior can buy a term life insurance policy or a whole life policy. A term life policy is more affordable, but if the senior outlives the policy, then he and his family gets nothing. The senior just gets to enjoy coverage during the time the policy is in force. A whole life policy, on the other hand, is more expensive. But, when the premiums are paid as they should, the coverage can remain, even when the insured has passed the age of 85.

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