Seniors Life Insurance, Old Age Pensioner (OAP) Life Insurance

Senior life insurance is bought by an elder to provide financial security to his/her family members. Through life insurance for elders, you can protect your home mortgage and manage your requirements for planning your estate. Although most people have life insurance, its benefits are usually too low to cover most of the critical expenses that are incurred right after the death of a policyholder.

Senior Life Insurance: Features

There are many myths surrounding senior life insurance. One of them is that seniors do not qualify for life insurance. However, the law in several states necessitates seniors to acquire life coverage.

Moreover, in most states, life insurance is protected from creditors and exempt from inheritance taxes, which makes this policy an excellent way to ensure that your wealth is transferred to survivors.

Life insurance for elders can be difficult and costly, since the life expectancy for seniors is low. Thus, most of these policies require an applicant to undergo tests and probing that determine his/her health.

Senior Life Insurance: Types

There are several types of senior life insurance policies:

·  Term life insurance for seniors: This type of life insurance is best for those who have fixed income and view an insurance policy as a means to provide financial security to their family, instead of being an investment vehicle.

·  Whole life insurance for seniors: With improving lifestyle and better medical care, the age span of elders is increasing. This increases the chance of a policyholder outliving the term of his/her life policy. The renewal of a term policy in such a case would result in a significant increase in premiums, adding to your financial burdens.

·  Single-pay insurance: A person who has accumulated sufficient wealth can choose to pay a onetime premium. A single-premium policy can double or triple in value in a short span of time. Moreover, one can structure the death benefit to be tax free.

·  Guaranteed acceptance life insurance: One can choose to buy a no medical exam policy. However, death benefits are limited in case a policyholder dies a natural death within a couple of years after the policy comes into effect. Once a policyholder survives this two-year period, his/her family is entitled to full benefits. This type of policy pays the full death benefit in case a policyholder dies in an accident even immediately after the policy comes into force.