subject: Getting More Out Of Life Insurance For Seniors [print this page] Purchasing life insurance for seniors, especially those beyond the age of 70, should not be as complicated as you may think. Although some insurers may ask for higher premiums and other fees, the extra charge may be very well worth it, as your insurance needs may be much more than the average worker 50 years old or below, for example. What you will have to identify before you buy a life insurance policy is similar as to what you would ask as a younger buyer: how much coverage is offered, and how long the plan will be in place.
If you are over 70, there are some things that you have to receive from your life insurance coverage. For one thing, the plan should be able to provide you with immediate coverage, which simply means that should the policyholder pass on soon after the policy is implemented, plan beneficiaries will receive the full value as stated in the insurance contract. Keep in mind that cash value can be a nice bonus, but it should not be the main reason why you sign up with a provider for a certain insurance policy. Some experts say that policies providing full endowment will give the senior or any plan beneficiaries the full cash value of the plan once the policy reaches maturity or end-of-term. However, this may not exactly be a prime advantage as the cash value, in comparison to the face value amount, may be subject to considerable taxes.
In this case, you or your beneficiaries may feel the disadvantage if an expected tax-free policy payout turns into a taxable amount if you live beyond the end of the term of the policy. If you outlive your whole life coverage, for example, you should try to request a coverage extension, rather than take the cash payout.
For older seniors who are more likely to require extensive assistance due to a chronic illness or serious disease that could be aggravated by age, purchasing an insurance policy that comes with a terminal illness rider may be beneficial. This rider often comes at no extra charge if you request for its inclusion in your coverage. This type of insurance policy rider that specifically applies to life insurance for seniors can give the insured retiree access to part of the face amount prior to his or her passing on if he or she suffers from a diagnosed terminal disease.
by: Katherine Smith
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