Life Insurance for Elderly

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Term Life vs. Guaranteed Acceptance

Life insurance for the elderly policies are different than other policies, in that coverage does not require a medical examination to determine eligibility. Term life policies are an option; however, there are some negatives to be considered with this type of insurance. Guaranteed life insurance, on the other hand, is guaranteed coverage for the life of the insured and can help pay for final expenses, unpaid medical bills, credit card payments and loans.

Term life insurance can be an affordable way to provide protection for a family or dependents; however, the drawbacks are that premiums may increase with age, and the policy expires after the set term, from one to thirty years. The premiums are paying for a death benefit that can be paid to the beneficiary only if the insured passes away during the life of the policy. Some insurance companies offer a renewal option with term life insurance for elderly policies. In the event that the policy expires and coverage is still desired, the policy can be renewed for a specified term. Renewal may require a medical examination and an additional lifestyle questionnaire, and may also include an increase in the premiums.

Guaranteed acceptance life insurance for elderly policies are exactly what the name implies. In most states, individuals between 50 and 85 years old can obtain life insurance, usually up to $25,000, that will remain in effect for the remainder of the insured’s life. As long as premiums are kept up to date, only the policy owner can cancel coverage. Guaranteed life insurance policies will not require any health questions to be answered. Instead, full coverage is delayed by a period of 24 to 36 months. In most cases, this limited coverage period is two years. If, during that time, the insured passes away, all premiums will be refunded with interest. It may be possible to lock in rates so premiums will not increase with age.

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