About Life Insurance for Senior Citizens
In the past, insurance companies refused to sell life insurance policies to seniors. Times have changed, the market is more competitive, and the population is getting older. This means that there is a huge market for the insurance industry to target, and nowadays, it seems that it is never too late to purchase life insurance--although advancing age and existing health conditions can mean dramatically increased premiums.
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Deferred Life
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Nobody wants to burden his family with the expenses of his death, and it is one of the main reasons why seniors buy life insurance. Many states now require insurance companies to offer guaranteed coverage to seniors. These policies are known as deferred life policies and are short-term. They will only refund premiums paid, or pay a limited death benefit, in the first two or three years of the policy. After that, beneficiaries will receive the full amount of the policy.
Guaranteed Life
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Guaranteed life policies offer basic life insurance benefits to individuals over 50 for set periods, usually 20 to 30 years. Applicants may be required to answer questions about their health and undergo a physical exam before acceptance. Once they have been accepted, benefits are guaranteed, regardless of health issues from that point on.
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Caution
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Sometimes seniors can be lured into life insurance policies that are simply not suitable for them. There are a lot of factors to consider when buying a policy or exchanging an existing one, and these should be considered carefully. Before signing an agreement, seniors should be cautious and ensure that they get the full proposal in writing, so they can give the full implications serious consideration.
Disclosures
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Before buying a life insurance policy, seniors should request full disclosure of all information relating to the benefits, and possible negative consequences, of the policy, particularly, if it is being sold to replace existing coverage. Charges often are associated with canceling and changing existing policies. These charges are often hidden.
Licensing
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As with all sectors of the finance industry, rogue companies are in business. It is important to ensure that the agent, broker and insurance company are properly licensed before purchasing products from them. Each state has an insurance commissioner whose office is responsible for overseeing the insurance business. This office can also provide seniors with valuable information to assist them in protecting their assets.
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References
Resources
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