Senior and Over 50s Life Insurance
Life Insurance companies have developed insurance products to offer to specialized services, most notably targeting the seniors to address needs of an aging population. With the growth in population of baby boomers who are at, or nearing, retirement age, many companies offer policies tailored to the needs of older applicants. These are often low to moderate face value whole life insurance policies, to allow a senior citizen purchasing insurance at an older issue age an opportunity to buy affordable insurance. This may also be marketed as final expense insurance, and an agent or company may suggest (but not require) that the policy proceeds could be used for end-of-life expenses.
Look at Life Insurance For Seniors for more information.
Here is a good reference on over 50s life insurance – which means over age 50, or life insurane for those in middle age or retirement age.
Preneed (or prepaid) insurance policies are whole life policies that, although available at any age, are usually offered to older applicants as well. This type of insurance is designed specifically to cover funeral expenses when the insured person dies. In many cases, the applicant signs a prefunded funeral arrangement with a funeral home at the time the policy is applied for. The death proceeds are then guaranteed to be directed first to the funeral services provider for payment of services rendered. Most contracts dictate that any excess proceeds will go either to the insured’s estate or a designated beneficiary.
These products are sometimes assigned into a trust at the time of issue, or shortly after issue. The policies are irrevocably assigned to the trust, and the trust becomes the owner. Since a whole life policy has a cash value component, and a loan provision, it may be considered an asset; assigning the policy to a trust means that it can no longer be considered an asset for that individual.
If you do not want to get tied into an arrangement with a funeral home, then consider final expense insurance policies from a life insurance company. These will deliver cash to the beneficiary which can be used at any funeral home. For a quick summary of different types of final expense policies, look at Simplified Issue Life Insurance vs. Guaranteed Issue Life Insurance.
[tag]senior life insurance, pre need, final expense insurance
1 Response to “Senior Life Insurance and Pre Need Policies”