Life insurance for seniors is known by several names. These may be referred to as guaranteed or simplified life issue. You could also find people calling them as final expense or burial policies. Life insurance companies sometimes promote life insurance for seniors as a method of handing over tax free estate to the selected beneficiaries. Whatever name people might give to life insurance for seniors, they are essentially talking about the same thing. They are meant for people who are older in age, perhaps not in sound health anymore and would like to buy a policy which they find affordable. When the policy has a ‘small face value’ it usually means that the coverage would range between $2500 and $25000.

You might have found that one of the more popular life insurance for seniors is the guaranteed life policy. This essentially means that the insurance provider usually waits for a certain period of time before they issue the policy. Here the person buying the life insurance for seniors would have to survive two or three years after the purchase of the policy. Once he has survived this term and passes away after the expiry of the waiting period, the selected nominees can get the benefit of the entire sum assured. In case he expires before this time span, the survivors would get back the amounts of premiums paid plus the relevant interest accrued. For seniors who are not in perfect health and yet feel the need for life insurance for seniors, this type of policy can be the ideal choice. However a guaranteed life policy is more expensive though the low face value makes it attractive for many seniors.

Simplified life policies on the other hand offer immediate death benefit to the survivors. The policy is operational soon after purchase and the policy holder is covered for the whole amount that is insured. The rate of such policies is also more affordable. The downside to these types of policies is that the buyer would have to meet certain health specifications. Such life insurance for seniors is good for people who come under the age limitations, are in sound health and who do not live in a nursing home or a clinic. In case you are thinking of buying this type of life insurance for seniors, go for immediate death benefit which involves cheaper premiums.

In case you are thinking of the funeral expenses it might be a good idea to invest a couple of thousand dollars towards your coverage plan. This extra money could be used to pay off your old debts, etc also. The balance money could benefit your nominated beneficiaries, which most often is not taxable. Such policies are good for parents who have more than one child. If you are leaving one child with some valuable heirloom, you could leave the other child with such a life insurance for seniors that can be turned into liquid cash. This means that you are fair to both your children.