Despite popular belief, a large majority of individuals don’t have life insurance until they’re seniors. They may think it’s too expensive or feel it’s only important if they have a large estate. There are multiple factors that should be considered.
Types of Insurance
Whole life insurance is more expensive, but as long as premiums are paid, it protects individuals throughout their lifetime. The policies often have a savings component that can be borrowed against. Term life insurance is written for a specific time span, usually 5 to 30 years, and is renewable. They typically don’t provide a savings component.
A whole life policy is cheaper to purchase when a person is younger, though monthly premiums are more expensive than a term policy. Whole life offers a larger payout.
Age and Health
Insurers often decline to provide coverage, depending on the age of the individual. Health declines as people age and options are severely limited the older a person is when they purchase life insurance. It’s not uncommon for insurance companies to refuse to write a policy.
Insurers can do so for any reason and employ a legion of lawyers that specialize in doing so. A policy can be declined if a person has mild asthma, a criminal record, ever filed bankruptcy, or has a hobby the insurer deems dangerous such as horseback riding.
Smoking is a red flag for insurance companies if an individual has smoked at any point in their life. Being 5 lbs. overweight can be a problem for an insurer, along with a family history of illness or disease, even if the applicant is healthy. An individual’s driving record can also prevent them from obtaining insurance.
When to Abstain
A life insurance policy may not make financial sense for some individuals. A senior with no partner or children, has no outstanding debt, and has pre-paid their funeral arrangements may find other uses for their funds that they consider more beneficial. Don’t forget a pet’s care when making plans.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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