By Michael Collins
Many people do not have life insurance. A substantial amount of the uninsured are senior citizens. Many seniors believe that they are too old to get life insurance, however it is common to see advertisements for life insurance policies that are reserved for seniors. Often, uninsured senior citizens desire life insurance in order to cover medical or funeral expenses once they die.
Typically, the older a person gets, the higher their life insurance premiums are. However, this is not necessarily the case with senior-specific life insurance. One website states that "Policies are general short term, and only pay a limited death benefit for the first two years. After two years, the full price of the insurance is payable to your beneficiary at the time of your death...Life insurance for seniors is available for as little as $15 a month. Usually, these inexpensive policies offer a low death benefit...Typical deferred life insurance policies offer as little as $5,000 coverage and go up to $100,000."1
In the past, many insurance companies would not provide life insurance for senior citizens. However, today, many states require that companies provide them coverage. Many life insurance policies for seniors have cash value so that they may be borrowed against or cashed in by the policyholder if they so choose.