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If you need fast life insurance coverage as a senior, traditional policies may not make sense. Read on to learn about three smart policy options to consider. [[{“value”:”
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Life insurance is typically pitched as something you should buy when you’re young and the rates are low. But if you didn’t get the chance until you became a senior, or your previous policy lapsed, you do still have options. That’s true even if you need to get covered quickly.
Here are three different types of insurance policies that you may want to consider.
1. Look into simplified issue insurance
According to LIMRA, there are over 100 million Americans who are either uninsured or underinsured. So if that’s you, you’re not alone. One quick option that you may want to consider to fix that is simplified issue life insurance. This type of policy doesn’t require a medical exam, but you will have to answer a few questions about your medical history.
So, unlike traditional life insurance, which can take weeks or even months to get approved due to the lengthier underwriting process, these policies can be quickly approved for qualified applicants. In fact, it may even be approved instantly, depending on the insurer. But the timing can vary.
Keep in mind, though, that rates can be higher than you’d find with traditional life insurance. And the available coverages can be lower, though still substantial. Most cap out at $100,000, with caps that are often subject to age restrictions, according to the Society of Actuaries. So you also need to shop around to find insurers that will both cover you based on your age and offer enough coverage if you go this route.
2. Try guaranteed issue life insurance
If you have significant health issues that could otherwise prevent you from being approved for traditional or even simplified issue life insurance, or would make it prohibitively expensive, a guaranteed issue policy may be the way to go. This type of policy does not have any medical requirements, such as an exam or questionnaire, to get approved. So, again, it can be issued quickly, especially compared to traditional life policies.
Just keep in mind that the death benefit may be graded. That means there would be a two- to three-year period after you first purchase coverage during which the policy would only pay out the premiums paid. After that, the full death benefit would apply.
As long as you fall within the age limits (which often top out at 80), you’re guaranteed to get approved. However, because these policies are available to anyone, the rates are often higher than traditional life policies for healthy individuals.
3. Consider a final expense policy instead
If the other life insurance options aren’t an option for you, but you still want a way to cover expenses such as funeral and burial costs, a final expense policy is an excellent option. It’s designed to cover those specific costs, though keep in mind that because of this, the payout may be significantly lower than what you’d find with a traditional life policy.
Typically, it covers up to $40,000 in expenses, though some insurers may only offer a few thousand dollars’ worth of coverage. As with the previous types of insurance, there is not typically a health-related requirement here, so approval can be swift. But keep in mind that the age cutoff may range from just 50 up to 85, depending on the insurer. So you’ll want to shop around to find the best option.
Buying life insurance as a senior can be expensive and time consuming. But if you’re willing to shop around for the best combination of speed and cost, you can likely find a policy that suits your needs.
Our picks for best life insurance companies
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