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Senior Whole Life Insurance: Everything You Need to Know

young boy smiling while piggybacking on his grandfather

Many people tend to associate whole life insurance with the future — but whole life insurance is about today as much as it is about tomorrow. Senior whole life insurance or final expense insurance is not only one of the greatest gifts you can leave your loved ones but also one that is relatively cheap and easy to underwrite.

The knowledge that all your affairs are in order and that your loved ones won’t have to dip into their savings to send you on your final journey gives one peace. And one way to do that is through whole life insurance.

What Is Senior Whole Life Insurance?

Senior whole life or guaranteed issue life insurance is a type of insurance that covers the final expenses of the insured once they are gone. Final expenses can vary from person to person, but many people will have at least one of these:

  • medical bills
  • funeral expenses
  • credit card debt
  • outstanding mortgage payments

Who Benefits From Guaranteed Issue Life Insurance?

To understand the benefits of this type of insurance, we have to answer a question most of us have asked ourselves at least once in our lives: “What happens to our debts once we’re gone?” 

Many people believe that their debts are just canceled the moment they are no longer here to pay them. We would all have loved it that way, but that sadly isn’t the case. For example, if you leave an outstanding mortgage payment, the remaining debt will be removed from your estate and paid to the mortgage company. What happens if the mortgage is larger than the estate? If this is the case, your loved ones may have to sell the house and pay the remainder of the debt.

That answers who senior whole life insurance is for. The beneficiaries of senior life insurance, like other types of life insurance, are the loved ones of the insured who won’t have to pay for the final expenses or any debts the insured left behind

Who Is Eligible for Senior Life Insurance?

Anybody, no matter what their circumstances are, can take senior life insurance. It’s one of the best insurance policies out there. But who specifically should have this type of insurance? These are:

  • People With Outstanding Mortgages — If you have yet to finish paying your mortgage and don’t want to leave your loved ones in a tight situation, guaranteed issue life insurance is for you. The average funeral expense is about $7,000. After your loved ones struggle to raise that, they may also struggle to complete your mortgage even if it’s the last $10,000 of a quarter-million home. Senior life insurance can take this burden off their backs and protect your family from foreclosure.
  • Older People Struggling To Get Insured — The older one gets, the harder it becomes to secure life insurance or the higher the premiums. Suppose you cannot get a whole life policy that’s not the end of the road. A guaranteed issue life policy is relatively easier to secure even at an advanced age.
  • People With Medical Conditions — Medical tests are a requirement to get insured under other policies. For people with terminal illnesses or conditions, getting life insurance can be cumbersome. Subsequently, the premiums may be so high they price a majority out of insurance. On the other hand, getting senior life insurance does not require a medical test, and almost everyone can be eligible.
  • People Who Want To Secure Their Funeral Costs — Many people don’t realize how expensive organizing a funeral can cost. Estimates put the average American funeral between $7,000 and $10,000. Another study also finds that half of America cannot raise $2,000 on a moment’s notice. Senior life insurance is worth considering for people who don’t want to transfer their funeral costs to their loved ones or who wish to pay for it over time.
  • People With Outstanding Medical Bills — During one’s advanced age, you may find yourself accumulating medical bills. Even without a terminal illness, small checkups here and there may eventually accumulate into a significant amount. People who don’t want to leave their loved ones with their outstanding medical debts can find solace in senior life insurance.

Benefits of Senior Whole Life Insurance

  • Senior life insurance comes with several benefits. The first comes from the fact that it is a whole life insurance policy and carries all the benefits of any other whole life insurance policy. The next comes from its simplicity and affordability. So what are the actual benefits of senior whole life insurance? Here are a few to begin with:.
1. Guaranteed Premiums

Unlike term life insurance policies, you have the guarantee that your premiums will remain the same with senior life insurance. This is irrespective of whether your health deteriorates or your age increases.

2. Simplified Underwriting

Underwriting for other types of insurance is a complicated affair, especially if one has an illness or is of advanced age. Requirements such as medical checkups are also prevalent in other types of insurance. However, underwriting in final expense insurance is simplified and often does not require a medical checkup.

3. Guaranteed Issue Policies

Like all other whole life insurance policies, final expense insurance guarantees compensation to your loved ones. This means that so long as you paid all your premiums, the insurance company would hold up its end of the deal and compensate your loved ones once you are gone.

4. Accumulates Cash Value

Like all other whole life insurance policies, final expense insurance has a cash value that accumulates throughout the length of the policy. This cash value can be paid out within your lifetime as a loan that you have to pay back before death. After death, the cash value loan is deducted from your policy.

5. Relatively Inexpensive

Final expense insurance is the most inexpensive type of whole life insurance one can get. The eventual payment can range from $5,000 to $10,000. Subsequently, you can get final expense policies with premiums as low as $40 a month.

6. Tax Benefits
The death benefits that are paid to your loved ones are not taxable. Your final expense insurance can be one way of giving your loved ones a non-taxable gift once you’re gone since they can use it for any purpose.To learn more about Senior Whole Life Insurance and other types of insurance that may be right for you, contact Amerus Financial group today or call us at 1-888-441-7891. We’ll be more than willing to help you find the right insurance policy to protect you and your family.