If you are a senior citizen and have few assets, you may wonder about your options for life insurance. The good news is that there are many companies that sell term life insurance policies that are for final expenses incurred at the time of your death. But there are a few things you need to know about them. The following are five of them.
The value of the policies are limited
These policies are designed to pay for your burial costs and miscellaneous expenses when you die, so in death, you are not a financial burden on your loved ones. Because of this, they are limited in size relative to those sold to younger people.
This type of coverage requires no physical
Many life insurance companies do not require a customer to take a physical before buying this type of policy. They usually don't require you to furnish your medical records. However, the reason they are able to do this is that they do not pay the full amount of the policy right away. So although it may be helpful to avoid a physical, you need to understand what the conditions are for partial and full payment of the policy's value.
There are age limits
This type of policy will be offered by companies starting at various ages, but they usually start about the age people retire. However, many are not aware that there are age restrictions on the upper end. The exact age will vary depending upon the specific insurance company, but they are usually in the mid 80s.
Premiums may change
Make sure you understand how much you will be paying in premiums over time. There are many policies that have monthly premiums that seem low, but as you get older, the premiums begin to rise, and the insurance may not be as good of a deal as you originally thought.
There are insurance companies that have built in protections for the police holder in a case where premiums can no longer be made. A severe disability is one example of this. Because of your advanced age, this is a critical aspect of a term life insurance policy for seniors, so you need to inquire about this before making a purchasing decision.
Final expense life insurance is not only available for the elderly, but it can be a great deal. Having money to leave your loved ones will relieve them of any financial burden they might have without an insurance policy. But you need to take the time to make sure that you are buying a good policy, and the information above should help you do this.