Senior Life Insurance
Funerals can be a major expense for family members. That’s one reason why many seniors may consider life insurance. Some insurance companies offer many kinds of policies built around seniors’ needs — such as final expense life insurance policies — that can help you gain the financial protection you want to leave for your family.
Do Seniors Need Life Insurance?
Funeral costs can be expensive. According to national estimates:
- The median cost of a funeral with a viewing and burial in 2014 was $7,181
- The median cost for a similar funeral including a vault (which is often required) was $8,508
- The median cost of a funeral with only a cremation and viewing was $6,078
This explains why for many seniors, life insurance is an important part of how they want to help provide for their loved ones after they pass away. Life insurance policies can protect your beneficiaries from bearing the full immediate costs of your death, and they can help pay for other expenses your family may face in the future.
Some Seniors Consider Term Life Insurance
Term life insurance plans cover policyholders for a specific period of time, or "term". If you die while the policy is in force, your death benefits will be paid to your named beneficiaries.
Some seniors may find that they don’t qualify for term life insurance policies if those policies are fully underwritten. Your age and your health can affect your qualification for term life insurance plans. If you do qualify for a policy, your premiums might be very expensive.
That’s why seniors might want to consider a permanent life insurance plan, such as final expense life insurance.
What Is Final Expense Life Insurance?
Final expense life insurance is a permanent form of insurance that remains in effect as long as you pay your premiums.
Most final expense policies provide death benefits that are a smaller amount than other forms of life insurance, often between $5,000 and $25,000. When you die, your beneficiaries can use this benefit payment to help pay for your funeral, burial, cremation or other end-of-life expenses, which could include unpaid medical bills or consumer debt.
Some policies are generally guaranteed issue and do not require a medical exam or health questionnaire. These plans also may have a graded death benefit for an initial period of time. You typically must fall within a certain age range to buy them (50-85, for example).
Some seniors may find that a final expense life insurance policy is right for them. Your individual circumstances and your family's financial resources will be factors that affect your unique life insurance needs.
*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.
