Not too long ago, most if not all insurance companies refuse to give life insurance to senior citizens. That is because they are considered to be a high risk. There is much truth to this. After all, the older you are, the more sickly that you are bound to be … at least that was the mentality back then. It will be lucky for them now because the market is getting more and more competitive. In fact, it has become so competitive that seniors are not just given life insurance. Life insurance options for those over 85 are in fact available for the grandparents out there.
There are many reasons for this. Some people say that because older people are healthier now and thanks to the proliferation of health and wellness campaigns, they are strong enough to the point that they are no longer as much of a risk as they used to be. Others say that insurance companies do not really have much of a choice but to have these options available because there are more old people in society today than younger ones. Hence, alienating them from having insurance is bad for their business. Whatever the reason is, senior citizen life insurance seems to be here to stay and there are different coverage options too depending on the type that one goes for.
In this article, we will explain in details what the coverage options are available. The first among the options is called deferred life. This type of senior citizen insurance is considered to be a short term one wherein the policy holder can only get the benefits for 2 to 3 years. In fact, it works by refunding the premium that he has paid or by paying a death benefit should anything untoward happen to him. Of course, the coverage of the death benefit is very limited as well. If he still lives after 2 to 3 years upon getting the deferred life insurance, the holder will get the amount of the policy in full and the term ends there.
The next option available is called guaranteed life. This is considered to be a longer term insurance for seniors compared to deferred life. Of course, not every applicant gets approved for this. One has to answer several questions about the status of his or her health. A physical examination to confirm this may also be required. Do take note, however, that because of the risk involved, the amount that one has to pay for the premium will be significantly higher than that of a younger person. Naturally, the insurance company would like to make sure that they’ve got everything covered.
Having life insurance coverage for seniors over the age of 85 is really a good thing. However, do be cautious before signing papers. It is always best to look at your options and think things through before signing up for such a commitment. Weigh the pros and cons before making a decision.