At its core, life insurance is a contract between a policy holder and a life insurance company where the insured agrees to pay for a policy on a regular basis and the insurer in turn agrees to pay a sum of money to beneficiaries upon death or after a set amount of time has passed.
Within these parameters, there are many different types of life insurance policies and they all have their own requirements, which usually become more strict the older an applicant becomes. Therefore, senior life insurance can be especially difficult for Seniors to navigate as they may have financial restrictions and unique healthcare needs.
The different options, costs, and restrictions lead to widespread end-user skepticism, but we think life insurance is important for every household to consider, especially for aging adults who have family to consider. Below, you can read more about great life insurance policies for seniors so you can help your senior clients find the option that best fits their needs.
Why Do Seniors Need Life Insurance?
If a senior has any financial dependents, they need Life Insurance to ensure their family is financially taken care of when they pass. Even if they are financially independent and don’t have any dependents, life insurance can be used as a strategic financial tool.
Life insurance money helps those left behind pay off debt, pay for final expenses, and can be left as a legacy for family members. Senior life insurance can possibly have tax savings elements if the applicant is looking to preserve the value of their estate. Additionally, it’s a way to secure their own financial stability as some whole life insurance and universal life insurance policies offer cash values and investments.
How To Choose The Best Senior Life Insurance Policy For Your Senior Clients
You probably know there are many different companies who provide life insurance and they offer different policies, premiums, and perks. As insurance agents, you already know what the differences are between term and permanent and whole life and universal life insurance policies, but your clients might not. That’s why it can be helpful to have a simplified explanation. So feel free to share this article with a client you may have in mind.
Here’s a generalized breakdown of options when it comes to explaining senior life insurance.
In short, term life insurance provides protection for a set period of time and the premium stays the same for the period covered.
Whole and universal life insurance are both permanent policies with subtle differences. Whole life insurance policies have set premiums so the insured pays the same amount every year.
Universal life insurance has flexible premiums that provide the insured the ability to adjust how much they pay and their level of coverage. Since whole and universal life insurance policies are both permanent, they both feature additional benefits like cash value that can be accessed while the insured is still alive.
There’s also Guaranteed Universal Life Insurance (GUL), which is a permanent insurance that guarantees the policy remains in force even if the cash value drops to zero. This is a great option for those who are over 60 years of age, especially for first time buyers, because it combines the permanent coverage of Whole Life insurance with the lower cost of Term. GUL has flexible coverage levels that may allow the insured person to raise or lower their premium payment or coverage amounts throughout their lifetime. GUL also provides payment plans to fit individual financial planning needs.
Agent Link’s Senior Life Insurance Products
Here are some of our most popular products and what makes them appealing.
United Life Insurance
United Life’s Traditional Whole Life product covers a broad range of individuals from ages 0-85. Out of all of our carriers, United Life offers the most in death benefit ($10K-$100K) with only 7 knockout questions. This makes them our most popular carrier, too.
Foresters Life Insurance
Foresters is appealing because they offer three types of coverage for 50-85 year olds. They ask between 6 to 10 health questions and provide up to $35K in face amount.
Gerber Life Insurance
If your client is interested in a guaranteed issue product, this may be a good one for them. Applicants must be between 50-85 to be eligible. Gerber is very easy to work with and there are zero health questions on this product, which makes them a great choice for seniors who have significant health issues.
All of our Final Expense products are whole life products that do not require an exam. They are marketed toward older individuals that need help with final expenses like funeral costs. Because there is no exam, our products attract seniors that normally wouldn’t be able to get approved for life insurance due to health issues. See a recent blog all about Final Expense here.
Our best advice for ensuring your client finds the best carrier at a price they can afford is getting to know them, their needs, and their budget.
At Agent Link, our agents have exclusive access to our comprehensive portfolio of senior products and carriers. If you’re looking for resources that can increase your sales and grow your business, we’d love for partner and contract with us.