Best Senior Life Insurance Companies April 2021 – Forbes Advisor | #insurance | #seniors | #elderly
Your need for life insurance will usually decrease as you grow older and accumulate other assets. The primary need for life insurance is based upon providing income to someone who is financially dependent upon you. If the assets you are leaving to heirs will be sufficient after you pass away, then your need for life insurance may disappear.
Here are reasons seniors may need life insurance:
- Final expenses. Provide funeral and related expenses to close up an estate.
- Inheritance. Fund an inheritance outside of your estate’s assets.
- Liquidity. Provide liquidity for an estate that has mainly illiquid assets, such as real estate.
- Income replacement. Continue income for a spouse or other dependent when your income is primarily from a pension or annuity that has minimal to no survivor benefits.
- Debts. Provide funds for survivors to pay large debts.
- Estate taxes. Provide funds to cover potential estate tax liability for heirs.
- Special needs child. Fund a special needs trust for a dependent who needs lifetime financial support.
- Charitable bequest. Make a lump sum donation to replace your on-going financial support for a non-profit.
Like anyone else, buyers of senior life insurance should look for a policy that fits their needs. Your purpose for buying life insurance will guide your decision on the types of life insurance to consider.
But if you need life insurance at an older age, here are some considerations for senior life insurance.
Avoid Graded Death Benefit Policies
It’s important to have coverage that pays the full death benefit from day one. Therefore, you’ll want to consider a traditional life insurance policy and avoid a “senior policy” that has a limited death benefit in the first years.
Don’t Be Rushed
Financial predators often focus on seniors. They may try to get you to purchase unnecessary coverage. Be wary of anyone who tries to rush you into making a decision or discourages you from discussing a proposed policy with a family member or trusted advisor.
Don’t Be Sold on Policy Projections That Aren’t Guaranteed
“Beware of ‘advisors’ offering policy reviews comparing non-guaranteed premiums, cash values and/or death benefits for some limited number of products,” says Barry Flagg, founder of Veralytic. These sales practices are now considered “misleading,” “fundamentally inappropriate” and unreliable by the financial, insurance and banking industry authorities.
“Insist that quotes include year-by-year disclosure of costs, often referred to as detailed expense pages or policy accounting pages,” says Flagg. Work with an advisor who can benchmark a policy’s internal policy costs and actual historical performance against the company’s peers, just like you do for other assets in your portfolio, he says.
Use Professional Help
Because seniors are likely to have health issues, it’s especially important to work with a qualified life insurance advisor who can help you compare policies from multiple insurance companies.
Your advisor should review your medical history, and send informal (anonymous) queries to multiple insurance companies to determine the best available rate for you. By doing anonymous inquiries, you’ll save time and avoid any possible application denials.
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