Senior whole life insurance is another option for those wishing to leave behind some money for their loved ones after death. Whether it be to help pay for burial and funeral costs, pay off some of the seniors debts, or just enjoy the money as a nest egg – whole life insurance for seniors is a viable option. Senior whole life insurance guarantees that a cash value will be left to their beneficiaries.
Unlike with specific burial insurance, senior life insurance allows the beneficiary to use the money for whatever they wish.
Benefits
The benefits of senior whole life insurance are many. Namely, there is very little underwriting involved with a senior whole life insurance policy. Which means a variety of things including:
- No medical exams – a medical exam and declaration of any pre-existing conditions are not necessary when applying for senior whole life insurance.
- Simple application – because there is little underwriting, the application process is very easy. There is no complicated paperwork, just a straight forward application.
- Fast turn around time – with such a simple application, and no medical exam needed, the application can be processed immediately. Sometimes the policy can be issued as soon as the application is complete, and usually not any longer then two weeks.
Drawbacks
When something seems too good to be true, that is usually the case. There are some drawbacks to a senior whole life insurance policy, namely the cost. Because of the lack of underwriting and exemption from a medical exam, the insurance company assumes more risk with the policy. Therefore, the policies are more expensive. Often a senior whole life policy is up to 5x more then a regular life insurance policy.
There is also a limit on the amount of the policy, usually senior whole life policies are issued at $25,000 or less. While that might cover burial expenses or pay off final debt, it’s not a lot of money considering what the policy might cost.
Considerations
While the policy might be more expensive, that doesn’t mean that it’s not a good option. If you are in poor health, or have a medical condition that would prevent you from getting regular life insurance, a senior whole life policy might be the answer. If you have the extra cash to pay the policy premiums, then having an additional guaranteed benefit for your loved ones may be worth the cost.
The easy application process and no need for a medical exam is very appealing. Tons of paperwork can be confusing and burdensome for seniors, so having a simple straight forward application is beneficial. The stress of a medical exam or the worry that they won’t “pass” can prevent seniors from applying for life insurance. With senior whole life that worry is taken away.