Senior life insurance has many benefits and can be used for many purposes. One of the more common forms of life insurance for seniors that we deal with is a category often referred to as final expense insurance or burial insurance. Individuals seeking out this type of policy generally do so because they do not want to burden those left behind with their final expenses or funeral cost. These policies are also popular because they are easier to obtain than traditional life insurance.
Most companies offer policies asking very few health questions, and some offer policies known as guaranteed issue life insurance policies, meaning they ask no health questions on the application. One of the common misconceptions for this type of policy is individuals assume that the death benefit can only be used to pay for funeral costs, burial costs, or final expenses. This is not the case, as most of these policies are simply a whole life insurance policy.
This means the death benefit is paid to the beneficiary, and the beneficiary can use those funds as they see fit, whether it’s to pay for final expenses, to pay off lingering medical bills, to pay off credit card debt, etc. If there is any money remaining, that money also stays with the beneficiary.
It is important to confirm the type of policy you have in order to ensure there are no restrictions on how the death benefit is spent. Be sure to read through the policy thoroughly, and don’t be afraid to ask questions. If you’re uncomfortable for any reason, it’s okay to slow down and seek clarification.
You can see why these policies can be useful, be it for yourself, for an elderly parent or an individual over the age of 80. Should you be interested in this type of policy. We are licensed in most states and would be glad to assist with any questions or concerns you may have.