As you get older, qualifying for life insurance policies can become increasingly difficult and they also become more expensive. With that being said, there are still several options available for seniors. Let's look at the differences between these four different types of life insurance options to help you identify the right type of policy for you or your elderly loved one:
- Term Life Insurance: This is typically not the best option for seniors because it has a set expiration date and the price increases as the individual gets older. Renewal is also not a given. When it expires the insurance company may refuse to renew the coverage or allow the senior to buy a new term policy.
- Permanent Life Insurance: This is often the most highly recommended type of life insurance for seniors. The policy will not expire as long as the policyholder continues paying the premium. This makes permanent life insurance a good alternative for covering final expenses and leaving behind an inheritance. Take into consideration though that the monthly premiums for larger policies may be very expensive.
- No Medical Exam Insurance: For those aging adults who are not able to qualify for a permanent life insurance policy due to the medical exam requirements, there are policies that do not require an exam. These are much easier to qualify for, however, they are also going to cost more. If the applicant has a terminal illness they will not qualify.
- Single Premium Policy: A single premium policy allows an individual to make one large payment to the insurance company instead of monthly premiums. If a senior has a significant amount of money in savings, this may be a good option. These policies still give the individual access to their savings through a cash value while they are still alive; therefore, they are not locking up their savings by buying one of these policies. Bear in mind that this is not the route to go for any individual seeking to spend down their assets to qualify for Medicaid.
For more information on long-term care planning, estate planning or other Elder Law issues please contact Stouffer Legal in the Greater Baltimore area.
