enior Life Insurance is whole life insurance that is mostly purchased by seniors to cover the costs of funeral expenses, and other final expenses when they die. This type of life insurance is still commonly known as final expense life insurance or burial insurance, but “senior life insurance” is a more pleasant term to hear. A typical senior life insurance policy is from $10,000 to $40,000 of insurance protection. Smaller coverage amounts are also used to cover a lower cost cremation service. Consider a senior life insurance plan as a mini whole life insurance policy with a specific purpose – covering final expenses. Therefore this type of insurance has the same benefits of a whole life insurance policy 1) can keep the insurance your whole life 2) your policy builds cash value 3) you can borrow against the cash value if you need to if the cash value is large enough and 4) the death benefit is paid out to your beneficiary tax-free.
Senior life insurance has gotten very popular since the widespread use of term life insurance. It used to be that young families would buy a large whole life insurance policy to cover their needs and then they kept it in force until they died. Whole life insurance was much cheaper at this time and so it was used in this way. Since the introduction of term life insurance,families have started buying term life insurance in their younger days to cover children, college expenses, mortgage, and other large expenses. Once the caregivers are older and their term policies have ended, they find a small Senior life insurance policy to cover their current needs. This is a much better way to use life insurance because you are changing your life insurance as your needs change, so you are never over-insured, and it is less expensive.
How much does Senior life insurance cost?
Senior life insurance can be very affordable. Of course, the younger and healthier you are when you decide to purchase a policy the less you are going to pay. The cost of buying a Senior life insurance policy is less than getting a regular whole life insurance policy and selecting a low death benefit amount. To get a Senior life insurance quote click on orange button.
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Most advertising you see on television from insurance companies like Colonial Penn and AARP or print materials will suggest the price of $6000 for the average cost of a funeral. The average cost of a funeral, however, when all things are said and done is more like $10,000. This is because the price given in ads and sometimes from the funeral director does not include some hidden fees. The total cost of an average funeral can be broken down into 3 parts: the funeral director fees, the cemetery services, and the headstone. $6000 may cover the funeral director but between the cemetery and the headstone you may be looking at another $4,000 dollars.
Prepaid Burial Plans and Senior Life Insurance
There are advantages and disadvantages of using Prepaid Burial Plans over Senior Life Insurance in order to pay for your final expenses. A prepaid burial plan ensures that your wishes will be specifically laid out on how you want your burial service to proceed. This allows your loved ones to be free of having to plan your service while they are grieving.However, if your burial plan is not fully paid for when you die, or the cost of services increased significantly there may be some overages that your loved ones would still have to pay. Also, if you move your burial plan may not be transferable. The cost of canceling your prepaid plan could be up to one third of the funeral service cost. A Senior life insurance policy can cover your final expense costs from day one and gives you the flexibility you need for the changes in life. It is important with a life insurance policy that you let your loved ones know in your will what your wishes are concerning final wishes.
Do I have to qualify?
The short answer is yes. With all life insurance plans there is always some level of qualification necessary to be issued a life insurance policy. With Senior life insurance you have the option to select a simplified issue Senior life insurance policy or a guaranteed issue Senior life insurance policy. Simplified issue Senior life insurance policies ask just a few medical questions to determine whether or not you will qualify and there is no paramedical (blood and urine)to be done. Guaranteed Issue Senior life insurance policies ask even less medical questions (usually 3 or 4) to determine if you qualify for a life insurance policy. If you are very healthy and take very little to no medications, and you want to save money, your best choice would be to select a policy with paramedical underwriting. The more the insurance company is comfortable about your health outlook the lower your premiums are going to be.
This is the reason is important to buy Senior life Insurance from a Final Expense broker like oiclife.com .You can compare prices with over 20 companies and find the best rate for your age and health! Use our Final Expense Calculator to find the ideal Senior Life Insurance rate.
If you don’t want the hassle of going through medical underwriting or you may have a few health issues you feel the insurance company may pay attention to, your best bet may be a simplified issue life insurance policy. Just answer a few questions and the insurance company will take your answers, do a little searching on your medical history, and then give you an answer “yes” or “no”, usually within 24 to 36 hours.Guaranteed issue is an option when there are major concerns about your health situation so the less questions the better. Usually, there are 4 questions to answer in the paperwork, and the insurance company again will make a determination on whether you qualify or not based on your answersand medical history.
About AFT+ Senior Term Life Insurance
We live longer today than we ever have before. But the more time we spend in retirement, the less likely that we’ll have enough left over for final expenses and outstanding bills once we’re gone.
Unlike some other term life insurance programs there’s no termination age and no medical exam. Your insurance premium is waived if you are ever confined to a nursing home. Plus, a «living benefit» feature allows you to collect benefits when you might need them the most — during a terminal illness.
Clear and simple, AFT+ is practical senior life insurance coverage for today’s needs.
Eligible to Apply
Available to spouses/domestic partners ages 55 — 74.
At age 75, if greater than $5,000, benefits will reduce by 50%, and will reduce again to $5,000 at age 80.
Senior Term Life Insurance Benefits
Choose your level of protection: benefits paying from $5,000 to $25,000, you select the amount of protection you want to purchase.
Pays in addition to any other benefits you may have.
Coverage without re-application or underwriting: You won’t have to fill out another form or answer any questions as long as you keep the policy.
No medical exams are required: The application process is made simple.
Premiums are waived if you become Terminally Ill or become Nursing Home Confined.
Pays benefits for loss of life by a covered accident or illness anywhere in the world.
At age 75, if greater than $5,000, benefits will reduce by 50%, and will reduce again to $5,000 at age 80.
Spouse or domestic partner are also eligible to apply.
Living benefits: Receive up to 50% payout of your life insurance benefit if you suffer a Terminal Illness (a life expectancy of 12 months or less). This allows you to get up to 50% of your benefit money when you need it the most. (And this benefit is available to you until 80 years of age). This information is written in connection with the promotion or marketing of the matter(s) addressed in this material.
Your coverage becomes effective the first of the month following our receipt of your approved application and first premium payment.
60-Day Satisfaction Guarantee:
Upon acceptance into this insurance plan, you’ll receive a Certificate of Insurance. You have up to 60 days from the Effective Date to review your Certificate of Insurance without any obligation. If you do not like what you see, simply return the Certificate of Insurance within that timeframe, and any premiums paid will be refunded. Hassle free.
Senior Term Life Insurance Terms & Conditions
Suicide: If a Covered Person commits suicide:
- while sane or insane;
- during his or her first two years of coverage under the Policy;
The policy will only pay an amount equal to the premium paid for coverage to the date of death. The Life Insurance Benefit is payable if a Covered Person is insured under the Policy and commits suicide after the two year period.
Exclusions: The two year suicide exclusion, stated above, will also apply if a Covered Person commits suicide during the two years immediately following an increase in coverage under the Policy. In that event, the Amount of Insurance payable will equal the Amount of Insurance in force prior to the increase plus an amount equal to the premium paid for the increase to the date of death.
Notice of Insurance Information Practices
This website explains the general purpose of the insurance described, but in no way changes or affects the Master Policy AGL-1661 as actually issued. In the event of a discrepancy between this brochure and the policy, the terms of the policy apply. All benefits are subject to the terms and conditions of the policy. Policies underwritten by Hartford Life and Accident Insurance Company detail exclusions, limitations, reduction of benefits and terms under which the policies may be continued in full or discontinued. Complete details are in the Certificate of Insurance issued to each insured individual and the Master Policy issued to the policyholder. This program may vary and may not be available to residents of all states.
Acceptance into this plan and premium rates are subject to medical evidence of insurability as determined by The Hartford and underwriting guidelines. As part of the evidence of insurability process evidence of good health may be required.
1The Hartford® is The Hartford Financial Services Group, Inc., and its subsidiaries, including issuing company Hartford Life and Accident Insurance Company.
Underwritten by: Hartford Life and Accident Insurance Company, Simsbury, CT 06089
AGIA, Inc. is the Plan Administrator that administers the insurance plan on behalf of the Hartford Life and Accident Insurance Company for the benefit of the Group Policyholder.
Union Privilege, Inc is compensated for the placement of insurance and for the services it provides to customers on behalf of the insurance company, in addition to other compensation it may receive.
This is a participating group policy under which dividends and/or experience credits may be paid to the AFL-CIO Mutual Benefit Fund.