Insurance Types
Learning Center
Burial Insurance For Seniors
What is burial insurance for seniors? These policies appear often on television commercials. Seniors want to cover their burial expenses and leave a bit for their heirs as well. However, life insurance companies often deny policies to those of a certain age or in bad health. Senior life insurance provides policies to those in the older age brackets that may not qualify for other types of insurance. The best way to get a policy is to find out your options and cost them out. Make the best deal for your circumstances.
What is guaranteed issue life insurance? Senior burial insurance advertised on television is often this type. The insurance company guarantees that the applicant will receive coverage, no matter their age or level of health. There is a trade-off though. These policies have a waiting period included with them. If the insured dies within the waiting period, their beneficiaries will only receive the premiums paid plus some interest. The waiting periods are often twenty-four to thirty-six months. If the insured dies after the waiting period closes, the company will pay the total amount of the policy to the beneficiaries. For each dollar of coverage received, the premiums average out to be very expensive.
What is simplified issue life insurance? This type of senior burial insurance does have some restrictions on it. The applicants must meet age limits, be in decent health, and not living in a nursing home. Many seniors plan for their final expenses while still in good health and at home. Many could qualify for this type of insurance. It usually comes with a lower premium and no waiting period. If the insured dies a day after the policy becomes effective, the beneficiaries get the full amount of the policy.
What are the pros and cons of these two options for burial insurance for seniors? Guaranteed issue life insurance may be the only option for people in poor health or outside certain age limits. Companies issuing these policies do not inquire on health or age. The largest problem is the built-in waiting period. If the person passes inside that time, the amount of coverage is low. The simplified issue life insurance requires a few questions on health and age. For seniors still going strong, these policies offer lower costs for coverage. They also pay the full face value immediately. Every senior needs to review their current circumstances before choosing which policy suits them best.