Thinking about the state of your loved ones after your demise is certainly not a pleasant thought. However, it is necessary, especially if you want to do your part to provide for your family even after death. If you don’t have life insurance yet, it’s not too late to obtain one suitable for you.
Life Insurance for Seniors
In general, senior citizens are on the lookout for life insurance coverage on a more permanent basis to cover the funeral costs and final expenses. Since affordable options for life insurance become increasingly limited as you age, it’s only natural to look for cheap and suitable whole life insurance for seniors.
While whole life insurance is the smarter option for you, term life insurance has the upper hand when it comes to cost. The key benefit of term life insurance is that the cost of the premium is much lower than whole life insurance. If you choose a cheaper term life insurance policy and outlive the initial term of said policy, you could end up with no life insurance after its expiry. Also, extending your coverage would require a hefty sum of money. However, if you’re looking for affordable life insurance, term life insurance might be your cup of tea.
No Medical Exam Life Insurance
If you have applied for life insurance before, you may be familiar with the fact that a medical exam is needed before purchasing a policy. Only if you are found eligible can you buy a life insurance policy? Typically, medical issues increase as you age. So, if you have health problems, you have a significant risk of increased premium rates or even rejection. Not to mention the paperwork is positively tiresome.
If you don’t want these hassles that accompany a regular life insurance policy, no medical exam life insurance is the way to go. No medical exam life insurance is a way for you to skip the paperwork and obtain life insurance even if you have health issues. This type of insurance is also referred to as “guaranteed issue”, and “simplified issue” life insurance.
No medical exam life insurance has a relatively low face value but can be bought for larger amounts. This is seemingly an easier way but keep in mind that your premiums may be higher. Because the insurance company doesn’t know about your health condition, your premium will be higher for the amount of coverage you purchase.
Types of no Medical Exam Life Insurance
Guaranteed issue life insurance
It is also known as guaranteed acceptance life insurance. The company does not review your medical records and they don’t need a medical exam either. Generally, you are only required to answer four questions: (hyperlink)
- Do you smoke?
- Are you currently in a hospital or long term care facility?
- Do you have AIDS or HIV?
- Have you been declared terminally ill?
While guaranteed issue life insurance policies can provide protection, they are more expensive compared to other policies. They offer some comfort but relatively low benefits.
Simplified issue life insurance
Simplified issue life insurance doesn’t require a medical exam. They do ask comparatively detailed questions and may ask to view your medical records. In case you have certain medical issues, there is a possibility of rejection.
Altogether Best: Mutual of Omaha
The availability of standard term policy and specific insurance such as cancer or heart attack insurance make them an ideal provider. Mutual of Omaha products includes extended age ranges for approval. The overall services they provide make them the leading choice for those over 50, including those who require no medical exam life insurance.
Since its inception in 1909, Mutual of Omaha has become the trusted choice for about five million insurance customers. They also have an A+ financial stability rating from AM Best.
Mutual of Omaha boasts a plethora of products including term life, whole life, universal life, accidental death policies. While it’s available in all 50 states, the range of products accessible may differ.
Term life insurance policies are available for customers between 18 and 80. After the expiry of the initial term, renewal can be made in one-year increments till the age of 94. Coverage rates start from $100,000. Terms are 10, 15, 20, or 30 years long.
Whole life insurance policies are available to customers between 45 and 85 (50 and 75 in New York) and for coverage ranging from $2,000 to $25,000. No medical exam is required to acquire the whole life coverage. If the customer dies within the first couple of years into the policy, beneficiaries receive 110% of the premium paid instead of a death benefit. A health questionnaire is not necessary if you are buying a whole life or universal life policy.
Best Final Expenses: AIG
Guaranteed acceptance offered to customers up to the age of 85. Since its inception in 1919, AIG has expanded to 80 different countries. Its financial stability rating is A from AM Best.
AIG’s Guaranteed Issue Whole Life Insurance policy includes final expense insurance coverage. The policy is accessible to customers between 50 and 85 with guaranteed acceptance. The range of coverage is from $5,000 to $25,000. You needn’t be subjected to a medical exam or health questionnaire for the coverage.
The whole life policies are underwritten by American General Life Insurance, except in New York. Like Mutual of Omaha, if the customer dies within the first couple of years of the policy being active, beneficiaries receive 110% of paid premiums instead of the full death benefit. The company isn’t available in New York.
Best for Index life Insurance Coverage: Transamerica
Best indexed life insurance is offered by Transamerica with new offers for customers up to the age of 85, along with a terminal illness rider option. The company does not require a medical exam even for high-risk seniors.
The terminal illness rider allows you to access your funds before death up to 100% of your policy’s death benefit. This is only if you are diagnosed with a qualifying illness.
It first opened in 1858 and the company is now available in all the states. Aegon, the parent company, ranks third in terms of financial stability and holds an A rating from AM Best.
Coverage ranges from $25,000 to $500,000. While no medical exam is required, they do ask for your medical history. For no medical exam life insurance, coverage ranges between $25,000 and $99,000. The terms are 15, 20, 25, and 30 years in length.
Certain diagnoses may result in higher coverage rates. Transamerica Financial Foundation IUL allows you to purchase a policy even if you’re a prior tobacco user.
Best for Rapid Decision: Fidelity Life
The company offers several unique types of no medical exam life insurances, including the Rapid Decision No Medical Exam plan. This a quick decision policy specifically designed for seniors who want to get coverage fast. The insurance coverage can be obtained in 24 hours and the whole process can be done online.
The company offers life insurance coverage up to age 95. Fidelity Life is available in all 50 states and boasts a financial stability rating of A from AM Best.
They offer a wide range of products, each with a range of optional riders to pick from. Age and coverage depend on the type of policy purchase. No underwriting or medical exam is required for the RAPIDecision Guaranteed Issue. Approval is guaranteed for customers between 50 and 85.
Other companies that offer no medical exam life insurance for seniors are Sagicor Life Insurance Company, Assurity Life, and American National. Some of these have unique riders like endowment rider, critical illness benefit rider, accelerated benefits rider, etc.
Different companies have different approval time brackets. While Transamerica takes two to four weeks, Fidelity Life offers approval within 24 hours. Some companies may not approve for a customer of age 67 but might for those over 50.
Calculate Your Needs
It’s important to calculate your insurance needs and debts before applying for coverage to make sure your loved ones get the utmost protection. Buying insufficient coverage could leave your loved ones with thousands of dollars of debt. Hence, you want to be sure that the policy you buy can cover the total debts.
Calculating your outstanding mortgage and car loan payments is a good place to start. If you don’t have any major debts, you can opt for a smaller insurance policy that is cheaper. If you have health conditions, there may be a possibility of you leaving your medical bills to your family upon death. Thus, it’s crucial to factor in medical expenses while choosing a policy.
There are various reasons why you could find yourself searching for an affordable life insurance policy at an older age. You could have reached the end of your term life insurance policy, lost your insurance through work due to retirement or job change, or just realized that you need more coverage. You may have a mortgage or the funeral cost might be too high. No one would ever want to be a burden on their family in any way. Doing your homework remains important even at an older age to get the maximum advantage and benefit for your loved ones.