Those over 50 can save on final expense insurance

Over the years, we have found many people looking for quotes and answers about life insurance for seniors. As a group of advisors, we can certainly relate. The company founder and some of the advisors are seniors ourselves. We have experienced much of what others have or will go through when reviewing their life insurance needs. Whether you are healthy, older or have an illness, you can buy final expense insurance at a reasonable price.

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Eight final expense insurance tips for Canadian seniors

Here are the reasoned suggestions we have learned working with our senior clients over the years. It’s a good idea to review these tips and learn how final expense insurance may just work.

Life insurance for seniors is comforting as one age

It is comforting to have some life insurance in place so that when one partner becomes an angel, the survivor will have some quick cash (usually within two weeks) to look after final expenses and top up their pension plan. We also frequently see only the husband has insurance due to affordability. When one partner passes, the government benefits, e.g. Canada CPP and OAS, are significantly reduced or lost, so having some extra cash around to supplement that loss is good.

Ignore all the hype on television and social media

These guaranteed issue life insurance policies are costly as people with medical issues tend to purchase them as if they have no other choices. The burial insurance for seniors sold pre-need can be even more expensive. Talk to one of our advisors, who will ask you about your health and then provide options for your insurance.

A 65-year-old non-smoker male in good health can purchase $10,000 of permanent life insurance for less than $40 per month or about $410 per annum – if you can budget for it, you will save up to 8% interest by paying annually. Get quotes and compare the three types of senior life insurance “whole life,” “universal life,” and “term-to-100”. Usually, the least expensive will work for you; is the purpose of providing just the death benefit, some tax-sheltered cash value, or both?

You may qualify even if you are taking some medications

Insurance companies know that we will be taking medications for high blood pressure, cholesterol, and some others as we age. They will still issue a policy at regular or standard rates in many instances. Our advisors are experts at asking the questions and then getting quotes from several companies based on these answers. We work to get you the best rates. We have successfully got a standard rating for people with late-onset type 2 diabetes.

If you bought mortgage insurance through your bank, please reconsider

There are many reasons seniors do not purchase life insurance from their financial institutions. It is critical for those looking for life insurance over the age of 60 if there is a chance it will not be paid off by age 69 as the coverage for most bank mortgage insurance expires the same month you turn 70. In addition, bank mortgage insurance is far more expensive than traditional life insurance as you age. Our advisors have saved clients thousands of dollars compared to what their bank wanted for their inferior coverage.

Term-to-100 policies provide permanent coverage when you're older

The kind of insurance seniors can get based on their age. Some seniors above 75 might not be able to get term life insurance. They will have to get either term-to-100 or whole life insurance in that case. When going with these permanent options, the policy will stay in place for a lifetime, and these never expire for as long as you continue to make the premium payments.

Use a joint life insurance policy to save for senior couples

If you are looking for payment if either partner passes, then a joint first to die life insurance policy can save money. If you want payment when the last partner passes to cover estate taxes, leave a legacy for children, grandchildren or a charity, then a joint last to die life insurance policy could save a lot of money.

Strike a balance in what you pay for premium and what is left to spend

While having lots of life insurance as a senior may feel good, and it is comforting to your loved ones, be careful not to be insurance rich and cash poor. We can help you with this balancing. One senior with an income of $25,000 a year and living with his children wanted to purchase a small policy that would have cost over half his income due to his health issues. This made little sense – better to have money to enjoy your family and grandchildren now. He had enough cash around to cover final expenses.

Do not procrastinate. Now is when it's the cheapest to buy a policy

As we age, it gets more expensive, but there is always the risk that health will deteriorate, and we will no longer be able to purchase any life insurance at an affordable cost. This is the biggest issue with finding affordable life insurance over 50 after a health issue. Suggest to your children (if they listen – I do have experience with this too) to get some permanent insurance now and, if possible, pay it off in 20 years so that they have the paid-up life insurance when they are seniors.

Compare senior’s life insurance quotes online

The quickest and most reliable way to compare seniors’ life insurance plans is to get multiple quotes from an online rate comparison service like IDC Insurance. Not only will you be able to compare life insurance quotes from several top-rated companies, but you’ll be able to do so from the comfort of your own home. You’re free to compare the rates at your own pace so you can take however much time you need and feel confident about your decision. Our licensed insurance advisors will help guide you through this process and assist you in buying a policy for you or your loved ones when you’re ready.