Universal whole life insurance for senior citizens comes with extra clauses due to age, health, and pre-existing conditions. Although pre-existing conditions may delay the loan application process, they won’t be rejected. Here are some tips and tricks to work your way through the loan application for seniors. The process will be smooth if you choose the right company, agent, and policy.
Need for Life Insurance for Seniors
Life insurance is needed for people of all ages. If any unexpected calamity strikes the insured person, it acts as a safety net for the family and loved ones.
Insurance is more affordable at a younger age than an older one as there will be no pre-existing conditions. Unfortunately, many people decide to take insurance only as they become older and when their health deteriorates. As age increases, the insurance rates will also be high. But that doesn’t mean it’s not affordable. There are specific life insurance policies for seniors.
There are various reasons why life insurance is needed after 50 years of age:
- To ensure that your dependents are not financially burdened after your demise. If a spouse or a child who is not yet economically independent is left behind, a life insurance policy can come to their rescue.
- Another reason for holding a life insurance policy in your later years is its high net worth and an excellent way to save taxes.
- Tips for choosing the right Senior Citizen Life Insurance
- There are a few crucial factors to consider before choosing an insurance policy for seniors.
Spend Time for Research
The older you are, the higher your life insurance risk becomes. In this scenario, it is better to do enough groundwork and not rush to choose your life insurance policy. You must research options, compare them, and arrange for the relevant documents. Research must be done about the following terms of insurance:
Age:
You must choose a policy with the advanced age of entry. Many companies provide insurance policies for people between 60-80 years of age. It also makes more sense to purchase a policy that offers coverage for a more extended period. For seniors, it is better to renew the policy rather than buy new ones.
Insured Amount and Premium:
Check and verify the amount insured with the policy and the premium. You must decide whether to go with a high premium or coverage policy.
Pre-existing condition: Buying life insurance with a pre-existing health condition has separate rules and regulations. Being aware of those is essential.
Other Clauses:
Check the terms and conditions of the insurance policy for any special clauses or exceptions.
Employ a Knowledgeable Agent
A good and trustworthy insurance agent like Harris Insurance will give you the correct information and guide you in the policy purchase process. He can either be a broker or an independent agent. These agents will usually be able to provide you quotes from various providers that you can compare.
The agent can suggest the insurance providers to give you optimal coverage with the lowest premium based on your current health conditions.
If you have a particular medical condition you are concerned about, look for an agent specializing in policies for this condition.
Be Honest about Your Health Condition
It is essential to be truthful and give all the information about your health condition to your provider or agent. The agent's decision will be based on the information you provide.
Disclose all details about your health condition, ailments, surgeries, treatments, or medications to your agent so that he can make an informed decision.
Acquire Quotes from Various Providers and Compare them.
Use your insurance agent’s skills or websites and Compare Life Insurance policies to shop for the policy of your choice. This will be possible only if you get quotes from multiple companies. You will know how each insurance provider treats your health condition differently.
Choose the Policy Type that is right for you.
After your research and information collection phase, it is the step to choose the policy that is the right fit for you. Because of your health condition, your choice of policy may be limited. You may not be eligible for a whole life-term policy.
If you are eligible, you must supply various documents like medical details, background information, and a prescription and undergo a medical exam.
Do your Medical Checkup if Necessary
A medical checkup is compulsory for a life insurance policy above 60 years of age. The premium rates are also reduced for people who complete the medical examination. This is because the lesser the knowledge about you, the greater the premium the company charges to indemnify the risks.
Usually, people with pre-existing conditions will need to take a medical exam to reduce their rates. If you do not take the exam, you will still be offered the policy at a higher cost.
Have an Open Communication with your Physician
Before the insurance company approves the policy, a statement from your family physician regarding your medical history is needed. They will also sometimes request information from all the doctors you have consulted.
To ensure the accuracy of this information, you will need to be open and honest with your doctor about your condition and any health issues you have.
If you inform your doctor’s office well, they will prepare the paperwork.
Life insurance for Seniors in Canada is a viable option if it is affordable. They also get tax benefits on various life insurance policies under section 80C of the Income Tax Act. Just remember the above tips and get help from an agent if you need clarification on anything.
Many insurance companies, such as Shriram Life Insurance, provide life or death benefit coverage for senior citizens.
Shriram Life Insurance is one of the leading life insurance providers in the world. They have a broad and diverse choice of insurance plans to cater to different people with different needs, covering all sections of society.
Some of the plans offered by Shriram Life Insurance for senior citizens are Term Life Insurance Plan, Pension Life Insurance Plan, Combi Life Insurance Plans, Endowment Life Insurance Plan, and many more.
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