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Life Insurance Options for Your Senior Loved One

By Debbie Waddell, 9:00 am on May 10, 2016

When a senior has family members who will be left behind after he or she passes, purchasing a life insurance policy can help ensure they are financially covered. If your senior loved one has been considering this decision, it’s best to compare coverage options so he or she can choose the best policy to meet his or her needs. To help make your loved one’s decision easier, Roseville live-in care experts discuss some of the most common life insurance options.

Whole Life Insurance 

To qualify for this type of coverage, your loved one needs to answer a series of questions about his or her health. The carrier then checks several databases, including medication. Whole life insurance benefits usually range from $2000 to $40,000. The cost of this option is higher than some life insurance policies because it is relatively easy to obtain. The underwriting process is simple and it will last for a lifetime, including the final expenses.

Universal Life Insurance

Your loved one will be required to take a paramedical examination to qualify for this type of life insurance. During this exam, blood and urine samples will be taken. Universal life coverage is a fully underwritten policy. If your loved one prefers, this policy can be structured so there is no cash accumulation, which is similar to a term policy. This type of life insurance policy can help your loved one get more coverage for his or her money. The minimum amount of benefits for universal life coverage is usually $25,000. 

Term Life Insurance 

This is a temporary policy that lasts for a specified duration. This means your loved one can obtain a term life insurance policy lasting for 1 year, or one that provides coverage for 30 years. The term he or she chooses will depend on certain factors like age or the reason he or she needs the policy. The term length for this policy decreases as your loved one ages. For example, if your loved one is over the age of 70, the maximum term amount he or she can obtain is 15 or 20 years. This is a great option for seniors in good health, although some minor health issues are usually acceptable. 

Guaranteed Issue Insurance 

Guaranteed issue insurance is available for anyone, regardless of health issues, with almost no exceptions. However, there is a 2-year waiting period. If a senior dies during that time, the company returns the premiums to the beneficiary, in addition to any interest paid. The beneficiary receives the full amount if the insured dies after the waiting period or if the death is caused by an accident during this time. The cost of guaranteed issue coverage is higher than other life insurance policies for seniors, which is one of the reasons why your loved one should only consider this type of coverage if he or she does not qualify for universal or final expense policies.

Some home care expenses may be covered by certain life insurance policies. Learn more about this option by reaching out to Home Care Assistance. We are a trusted provider of live-in and part-time care for seniors, our caregivers are expertly trained in comprehensive Alzheimer’s, Parkinson’s, and stroke care, and all of our care services are backed with a 100% satisfaction guarantee. For more information on elderly care Roseville, Rocklin, and Lincoln families trust, call one of our knowledgeable Care Managers at 916.226.3737 today.

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