Senior Life Insurance and the Guaranteed Acceptance Solution

No one wants to be a burden to their spouse and children in life or in death. This is the main reason why many seniors take a second look at life insurance for seniors.

Most senior citizens already have some kind of life insurance, but their policies often are quite old. As a result, the original death benefit, which seemed reasonable at the time the policy was written, may not be large enough to cover unpaid medical bills or todays funeral costs. Creditors can try to collect from a persons estate after the person dies. Even state governments can seek reimbursement for Medicaid payments made while the person was alive. Many seniors want to supplement their existing policies as a way of protecting their assets from creditors after their deaths.

Insurance companies must minimize risk to maintain profits, so it should come as no surprise that guaranteed acceptance life insurance policies have limits designed to minimize risk and losses. For example, the policies do not pay the full death benefit if the policyholder dies of natural causes during the first two years of the policy. It will only pay the beneficiary the amount of the premiums paid to up to that point plus interest. The insurance companies put these limits in place to avoid writing policies written for terminal patients shortly before they die. Once the two-year waiting period is over, however, the policyholder is fully insured for the face value of the policy.

The two-year limit on guaranteed acceptance life insurance applies only to death by natural causes. If the insured dies accidentally, the full death benefit is paid.

Not surprisingly, guaranteed acceptance life insurance can be expensive. Seniors should never assume that they will not qualify for standard life insurance. With the growing senior population and increasing life expectancy, many insurance companies have created special policies for older customers. Those who can qualify for a traditional life insurance policy will pay much lower premiums than they would for a guaranteed life insurance policy. Any senior citizen considering taking out a guaranteed acceptance policy should consult with an insurance professional first.