Senior citizen life insurance is a good way for seniors to protect their families from financial ruin after they have passed on. The different types of senior citizen life insurance policies will cover the cost of the funeral and burial arrangements as well as paying off a good portion or all of the debt that the person may have owed before he died. There are some times that the senior citizen life insurance policy is designed to be given to children or grandchildren as a gift after the person has died. Other times it is merely to pay for the funeral expenses so that the rest of the family is not burdened with them.
Options
There are three types of senior citizen life insurance policies. There is term insurance which is the cheapest to buy, having low monthly rates, and can be purchased for a certain amount of time, such as ten or twenty years. There is whole life insurance which is bought and continues through the person's lifetime so that they are continually covered, not having to renew the policy, and it grows in value over that time. There is also universal life insurance, which acts like a savings account, and will be tax deferred until the person dies and the beneficiaries get the money. The rule of thumb when deciding how much the senior citizen life insurance policy should be for is to take the amount of money the person makes per year and multiply it by seven years.
There are times when the person has paid into a policy and they want to do a senior life insurance settlement before they die. There are companies that are set up to purchase life insurance policies in these situations so that the person can get cash today on the policy. There are strict rules that apply with settlements on senior citizen life insurance, and it usually takes the intervention of professionals to do the bargaining on the policy for the individual so that they get the best value for the policy that they held.
When choosing a senior citizen life insurance company, the person should thoroughly check the background of the company, often checking with the Better Business Bureau to make sure their have not been serious complaints about the company and that it has been in business for many years. They should also get estimates from more than one company so that they can compare rates and benefits between the policies and make the best decision for their needs.