Life Insurance For Seniors - The New Way

Seniors searching for life insurance are often confounded by the array of products available. Whole life, Universal, Term? One thing is clear, however, and that is the obvious-sky high premiums.

Many seniors choose to get diluted coverage because of the premium expense, or forego life insurance completely instead of purchasing this asset, which might be extremely worthwhile for their families. The cost of providing for their loved ones is just too high to bear during retirement years.

Are there any alternatives? The answer is, unequivocally, YES! A specific new life insurance for seniors product has evolved over the past few years and it is called Premium Financing. It is not a new life insurance concept, but one that has come to the forefront recently.

Premium financing is where, typically, an independent institutional funder decides to pay the premium for the insured. Financing is done for a period of years, or even for life. Financing rates vary, but are typically related to the U.S. prime rate or LIBOR.

Why would the funder do this? The funder believes that they will get a better return, overall, than investing in traditional financial vehicles. They fund an enormous basket of these transactions, and know through the law of averages, that overall, their returns should yield a few hundred basis points higher than bonds. The institutional funders include Hedge Funds, Large U.S. and International Banks, Pension Funds, College Endowments, and even Insurance Companies themselves.

Why would a senior do this? The senior typically has no out of pocket expenses, or, at most, minimal cash outlay. Imagine getting millions of dollars of coverage with no cash outlay or a few thousand dollars one time total investment.

If the senior dies while the note is in force, premiums and reasonable interest are recouped by the institutional funder, and the balance is paid to the heirs. These new senior life insurance programs are set up so that the proceeds pass to the heirs both income tax free (standard with life insurance), and estate tax free. This is an awesome advantage, once only utilized by the very sophisticated and wealthy.

In some cases, depending upon the initial structure, seniors may even choose to offer the policy for sale into the burgeoning secondary market called life settlements at the end of the note term, continue financing, or even buy the policy outright if their health status has changed.

As you can tell, there are numerous variations on this theme. The concept of costly life insurance for seniors is a thing of the past. To find out more, you might want to explore life insurance for seniors [http://www.life-senior-insurance.com/]

Jon Thomas has been involved in finance and insurance, specializing in emerging growth markets since 1979. He continues to write articles to help with senior life insurance [http://www.life-senior-insurance.com/] and premium financing.

Life Insurance for Seniors Over 70

Selecting a life insurance plan when you are a senior over 70 does not have to be so complicated. It really all comes down to the same questions one may ask when they are under age 70. What does the plan cover and how long is my coverage good for?

What should your plan cover if you are over 70?

Fist of all, if at all possible, your plan should offer immediate coverage. In other words, should the insured die shortly after the coverage is in force, the full face amount should be paid to the beneficiary(ies). Although cash value is a nice added benefit, we do not feel that it is of prime importance to a senior's life insurance plan. Some may say that with full endowment polices, the senior will have the advantage of getting the full face amount of their policy in cash at the end of the term. We do not feel that this is a great advantage as, unlike the face amount, the cash value may be taxable. So, what should have been a tax free payment upon death becomes a possible taxable payment to a senior who outlived the insurance policy. If at all possible, if a insured outlives a whole life insurance policy, the owner of the life insurance policy, should request an extension of coverage rather than a cash payout.

Some insurance policies will also offer a terminal illness rider. That rider is often included at no extra cost to you but it may need to be requested to be included. The terminal illness rider, allows for the insured senior to use a portion of the face amount of the policy before death and in case of a covered, diagnosed terminal illness. Another rider that may be important, although not often available, is the long term care benefit rider. This rider can be very useful, particularly if you do not carry a long term care insurance policy. Briefly, long-term care (LTC) is a variety of services which help meet both the medical and non-medical need of people with a chronic illness or disability who cannot care for themselves for long periods of time.

Please be aware that some whole life insurance policies, when the insured is not in the best of health, will postpone coverage for two to three years. What that would mean for the senior or mainly the beneficiary, is that during first the two to three years of coverage, should the insured die, the face amount will be limited to the premiums paid plus some interest. If applicant cannot qualify for a standard life insurance policy, we have found these polices (graded life insurance) are a very good choice. After all, some of these policies may pay you 5% to 10% on your money for the first two to three years until the full face amount kicks in. How many people can get 5% to 10% on there money without risk in bad or even in good economic times. So if you are a senior over 70 and cannot qualify for level whole life insurance, then graded life insurance may be a very good choice.

How long should coverage and rates be guaranteed on life insurance policy for a senior over 70?

The answer is simple, as long as possible! The reason is that many seniors today will live to age 90+. So if a senior over 70 gets a term life insurance policy and, most likely, will only be able to get a 10 to 15 year term, the insurance coverage may run out at a time it will likely be most needed. In a situation where the life insurance coverage, a senior needs, is very specific to a liability (mortgage, car loan...) a term life insurance policy may be the better choice. Most senior policies are used for the purpose of taking care of final expenses including among other things, burial cost though. Your coverage is more likely to be a long term need and if you do a term life insurance plan, after it runs out, you may have to get re-approved for coverage and will pay much more in premiums and are more likely to be highly rated or declined (depending upon your health and other factors). If a term policy is absolutely needed, we recommend that seniors over 70 also take a whole life policy. The whole life should guarantee rates and full coverage to at least age 100 or longer (age 120 maybe available). Beware of whole life polices, particularly group sponsored or government issued whole life policies, that grade down the coverage after age 70 or 75. Those could be as bad as having term life insurance. Get your own senior life insurance plan!

Exam or no exam life insurance for seniors over 70?

We have covered the exam or no exam issue in many other articles. We felt though that it would be important to mention the major factors for seniors over 70. Simply, if you need a smaller amount of coverage such $5,000 to $50,000, we recommend the no exam route. The policy is more likely to be approved and approved fast. If you need a large amount of coverage, then the no exam plans will either not be available or become too expensive. The full underwriting exam route is best.

Irregardless of which plan you select, as we say in all of our articles, ask, ask and ask more questions. Be well.

Philippe Deray - About the Author:

Philippe Deray is President and CEO of MCD Financial Services and MCD Life. Our web site address is http://www.mcdlife.com/life_insurance/seniors_life_insurance/life_insurance_for_seniors.htm

Company Profile

MCD Life is a successful, dynamic company built on the principal of serving our customers FIRST! Our primary mission is to bring peace of mind to our clients by offering innovative, value-added products and information that place emphasis on short and long term benefits, benefits backed by selected companies with high quality assets and written guarantees.

Our Focus Life Insurance for senior over 70

With many years of experience in the insurance business, we have developed proprietary methods to help seniors get affordable insurance. We offer term insurance, whole life and universl life insurance. We will make this process as simple as possible and get you an answer as fast as possible.

All About Senior Life Insurance

In young age you are energetic, full of glamour and perfection, but with time they all fade away. What were all beautiful and filled with colours change into gray. This is all but nature's law and you should happily accept this changing phase in your lifetime. As you grow old your body gets easily susceptible to various physical ailments - you need to go regularly to the hospital; do various tests and then undergo treatments and all these cost you a fortune. To make yourself feel safe in old age you should get a senior life insurance.

Senior life insurance pays for almost all the major mishaps in an individual's life. If you are suffering from a chronic disease, senior life insurance will bear your medical expenses. Senior citizens are most susceptible in regard to illness; hence, many government corporations and private companies provide senior life insurances. Life insurance policies even provide money for funerals and other ceremonies after death. So each and every senior citizen should go for a senior life insurance.

Senior life insurance can be obtained for people in the age group of 55-75. You should do a bit of research work before buying your policy to know the authenticity and reputation of that company or discuss with an expert before choosing a senior life insurance.

Some benefits of choosing a right senior life insurance:

1. A fixed premium, which will not increase.

2. You can also avail a no medical life insurance, which is also called as no exam life insurance.

3. You will get death benefits, which will not decrease up to three years.

4. With senior life insurance you will get facility of senior life settlement or life insurance settlement: Senior life settlement is a deal where a senior citizen sells his life insurance policy and in reward gets some cash, which can be utilized for some other purpose.

5. Guaranteed cash value on tax deferred basis.

A senior life insurance benefits also depends upon the insurer. The policy of benefits differs from one company to another. If you are net savvy can get free online life insurance quotes from various web sites and can then go for the best offer.

We offer the best life insurance source. Check it out on the Online life insurance quotes and information guide [http://www.leandernet.com/Life_insurance/Life_insurance.php]. All about life insurance on [http://www.leandernet.com/Life_insurance/Life_insurance.php]

Life Insurance For Diabetics

When most people are diagnosed with diabetes, life insurance usually is not the first thing that comes to mind. Most people when they're first diagnosed may not realize the implications that diabetes will have on them financially, other than with medical bills. With many major insurance companies, diabetes is a major concern. Fortunately, there are companies that are very lenient with diabetics and can offer rates that are exactly the same as they are for non-diabetics.

Generally speaking, these companies that are lenient about diabetes have three basic questions that they want to know when you apply for life insurance. The first question pertains to whether or not you have had or experienced diabetic coma or insulin shock within the last 2 to 3 years. Secondly, most insurers will ask if you have ever had an amputation due to complications with diabetes. Third, you may or may not be asked whether or not you are using pills or insulin shots to control your blood sugar. These are the three main concerns.

Also, insurers that are lenient about diabetes are generally life insurance companies that specialize in senior life insurance. Seniors, according to life insurance companies are people that are 50 years and older.

Some term life companies ask very few health questions, but have a waiting period before the full death benefit of your policy is paid upon death. Avoiding a waiting period for the full death benefit to be payable is a major concern for many diabetics that are shopping for coverage.

The best way to find companies that are lenient about diabetes and that can offer you the most coverage for the least amount of money, as well as, provide a death benefit that has no waiting. Is to use an online insurance comparison website.

http://www.LifeInsurance4All.com/ is a free tool that you can use to compare life insurance quotes and policies, including those with diabetes.

Christy Love is a Platinum Level Expert Author at ezinearticles.com.

No Medical Exam Life Insurance for Seniors

So you are a senior and need life insurance. Or you are the child of a senior and need to get your parent insured. Well, there are really two basic ways to accomplish that. You can either go through a full underwriting plan which will include an exam, medical records ordered and other needed items and also wait weeks for an answer, or you can just apply for a no exam life insurance plan. In most instances, we have found that, when a child needs life insurance for a parent, no exam life insurance is much more likely to be accepted by the parent. Does no exam life insurance for seniors give me the same coverage as regular insurance?

The answer is simply yes or most of the time. Let me explain. If you apply for a level policy, then the coverage is level from the beginning of the policy. What that means is that if, for example, a man named Bob applies for a $50,000 no exam life insurance and gets approved, his full coverage starts immediately. In other words, if Bob dies the next day, the full amount ($50,000) is payable to the beneficiary. There are some polices that do not pay the full face amount right away. Those are called graded life insurance policies. In this case, Bob would need to wait at least two years before the full face amount of the policy is payable. So, if Bob died the day after the policy was approved (or within two years), then beneficiary would most likely be only paid the premium Bob had paid plus some interest (usually 5% to 10%). Some polices even have a longer graded period so make sure to read your approved policy carefully. A table showing the insurance coverage usually is on page two or three of the insurance policy.

How long does it take to get an answer for no exam life insurance

Unlike traditional life insurance, when seniors apply for no exam life, they can get an answer in as fast as the same day. Answers from underwriting usually average three days. That is not bad. If you do need a very fast answer (1 to 3 days) make sure to ask about the process of underwriting. Some companies that offer no exam life to seniors may still order doctor's medical records. That can delay the answer by weeks. So ask!

Can the child of a senior get life insurance on a parent?

Generally, yes, a child can get life insurance on a parent. The parent must be aware that the child is applying. Although, the parent does have to sign to apply for the no exam life insurance, a child must explain to the parent what they are signing for. The child is usually allowed to pay for the policy with no problem. We actually have found that for seniors over the age of 80, children are the one to most likely request the insurance rather than the senior.

How about pre-existing health problem?

Past or present health conditions do not always prevent a senior from getting no exam life insurance. The number of companies available may be more limited though and the senior may end up having to settle for graded life insurance (as explained above). What we have seen is that as long as the senior can take care of themselves and are not in a nursing home, then no exam life should available. It has often been misunderstood that no exam life insurance means no health questions. That is totally incorrect. We know of only one company that is no exam and no health questions. Rates are very very high!

Should a Senior do No Exam Whole Life, Universal Life or Term Life?

In most situations, we recommend that, if available, that a senior select no exam universal life insurance. A main advantage of universal life is that it prices better than whole life and can offer the same lifetime coverage guarantees at level premiums. For most seniors, cash accumulation is really not the goal. Being able to maintain an insurance policy for life without having to worry about increasing premiums should be the goal. No exam term life insurance for seniors is also a good choice if universal life is too pricey at the moment. As far as term life, keep in mind that although it will price lower than universal or whole life, the rates will not remain the same for life. As an example, if a man named Bob selected a five year term plan. During the first five years his monthly rate may be $35 but after the five year is up his monthly rate may jump to $150+. So, select term life only if you really cannot afford universal life. Also, make sure that the term life plan is convertible (ask your agent). As far as no exam whole life is concerned, as we mentioned, it is priced the highest. Whole life is selected when a senior has nothing else available because of age or health issues. Yes, whole life is often easier to get approved on than term or universal. Note that, no exam universal and term life are not usually available past age 75.

We hope this article has helped you better understand no exam senior life insurance. As we often write in our articles, please make sure that all your questions are answered before you apply for any insurance. Once you receive your policy, review it carefully and ask more questions if needed. Be well!

Philippe Deray - About the Author:

Philippe Deray is President and CEO of MCD Financial Services and MCD Life. Our web site address is http://www.mcdlife.com

Our Focus Life Insurance for seniors

With many years of experience in the senior insurance business, we have developed proprietary methods to help seniors up to age 90, get affordable life insurance. We offer term insurance, whole life and universal life insurance. We will make this process as simple as possible and get you an answer as fast as possible.

Company Profile

MCD Life is a successful, dynamic company built on the principal of serving our customers FIRST! Our primary mission is to bring peace of mind to our clients by offering innovative, value-added products and information that place emphasis on short and long term benefits, benefits backed by selected companies with high quality assets and written guarantees.

No Exam Whole Life Insurance Explained

What is whole life insurance without an exam?

Simply put, it is a life insurance that does not require an insurance exam as part of the underwriting process. In most cases, only an application is needed and possibly a quick phone interview. Once these requirements have been met, you should have a final answer on your application within 24 hours. Some of these life insurance plans are really simplified in that they do not even ask any health questions; while, some will not require an exam but request medical records (although that is very rare). With most plans, a variety of health questions need to be answered and those questions can greatly vary from company to company. Keep in mind that the less you need to do to qualify for the policy the higher the premiums and/or lower the benefits (read you policy carefully when it arrives!)

How much No Exam Whole Life Insurance can a person qualify for?

If there is one major difference that distinguishes a no exam life policy with exam required life insurance, it is the size of the face amount. Depending on the insured's age, no exam whole life face amounts may be limited to as little as $15,000 and be as high as $200,000. For example, an 85 year old may be able to only qualify for a maximum of $20,000 in no exam whole life while a person under the age of 50 may be able to get as much as $200,000. The amount of insurance that you apply for does not usually affect the underwriting process.

What riders are available with No Exam Whole Life insurance?

The second mot common difference between no exam whole life and full underwriting life insurance (exam required and more) is the riders. In most no exam plans riders may be limited to just accidental life insurance. With that rider, if the insured dies in an accident, the regular death benefit plus and additional death benefit is paid to the insured. Other riders such as the waiver of premium, other insured rider, child rider... may not be available. Rider availability may also be greatly affected by the insured's age. In many no exam whole life plans, we have seen the critical illness rider automatically included. Due to the many types of critical illness riders available, I suggest you ask your insurance company or broker about them.

What if you have pre-existing health conditions?

If there is one big benefit that no exam whole life can provide individuals, it is its flexibility of approval and wide acceptance of past or present health issues. With no exam whole life insurance, in many cases, pre-existing as well as past health conditions can be acceptable for underwriting. It can often be the only plan that will allow someone to get quality life insurance... Please note that in some cases the insured may only qualify for a graded or modified plan as opposed to a level plan. A modified or grade whole life will usually limit the amount of the death benefit during the first two to three year of the policy. Note that, just because one insurance company has declined you, does not automatically mean that others will to. If you have been declined for no exam whole life, keep looking and be as specific as possible in your online search. For example, if you are a diabetic you may want to type in "no exam whole life insurance for a diabetic". Some insurance companies may specialize in a certain illness while another may not. One more thing, if have previously been declined (usually in the past one to two years) some insurance companies may not offer you any coverage. Try to avoid a decline but don't worry, most companies we have seen do not care to ask about your previous declines.

Things to look out for in the no exam whole life plans

Not all No Exam Whole Life plans are the same. A lower premium on one plan that seems to be the similar to another may actually indicate major differences. One difference could be in future automatic death benefit changes. Many people are aware of the limited death benefit we mentioned above in the case of a graded or modified no exam whole life insurance. Few look at the later years of a policy. For example, if you examine your policy, the benefit page should show you the death benefit value on a year by year basis.

If you bought a $25,000 policy then it should show $25,000 from the first year of the policy all the way to age 120.

If the policy you bought is a graded or modified plan, the first few years (usually 2 to 3) may show a smaller death benefit that but later years should show a level death benefit for life. For example, you bought a $25,000 life insurance policy, the first year may show a death benefit of $5,000, the second year may show a death benefit of $12,000 and from year three and on, the death benefit should be for the full value of the policy at $25,000.

Beware of policies that have decreasing face amounts either year after year or by a certain age (often age 75). For example, a policy may start with a death benefit of $50,000 but decreases to a death benefit of $25,000 by age 70 and continue decreasing after that. Please read your policy proposal pages carefully and ask questions.

What type of individual is most likely to apply for no exam whole life?

We have seen people of all ages show an interest in no exam whole life but the most popular ages are between the 1 and 12 and 70 and 85+. For younger ages, you may see these plans offered as children whole life or grandchildren whole life insurance. With older ages, you may have seen these plans called final expense whole life, burial life insurance, senior whole life or some other variations of these names.

I hope that this article has given you a better understanding of what is no exam whole life insurance. Note that it is your responsibility to make sure that you have the plan you think you have so read your policy carefully when it arrives. As we say in all of our articles, please ask a lot of questions before during and after you have applied for your life insurance. Be well!

Philippe Deray - About the Author: Philippe Deray is President and CEO of MCD Financial Services and MCD Life. Our web site address is http://www.mcdlife.com/no_medical_exam_life_insurance/whole_life/no_exam_whole_life_insurance.htm

Our Focus No Exam Whole Life Insurance
With many years of experience in the insurance business, we have developed proprietary methods to help individuals get affordable no exam whole insurance. We also offer term life insurance and universal life insurance. We will make this process as simple as possible and get you an answer as fast as possible. We accept people between the ages of 0 to 85!

Company Profile
MCD Life is a successful, dynamic company built on the principal of serving our customers FIRST! Our primary mission is to bring peace of mind to our clients by offering innovative, value-added products and information that place emphasis on short and long term benefits, benefits backed by selected companies with high quality assets and written guarantees.

Senior Life Insurance Settlements

A senior life insurance settlement is the financial option available in the hands of a senior citizen to sell his/her life insurance policy to others and availing the death benefits before the maturity period or the demise.

In contrast, viatical life insurance settlements offer premature death benefits to the policyholder who is suffering from severe diseases like cancers, AIDS etc and whose life expectancy in future is only in days. If a senior citizen, having the age over sixty-five years, is in financial crises and badly in need of money, he/she can opt for life insurance settlements. Generally the senior citizen receives the amount which is higher than that he would receive if he surrenders his policy to the insurance company. So even though he will receive a fixed percentage of the policy amount from the senior life insurance settlement transaction, it is beneficial to the policyholder. The amount so obtained by the policy owner can be used for discharging debts, for buying a house, for a vacation trip, or anything else.

In order to avail the benefit of senior life settlement, the senior citizen should be over the age of sixty-five years and have some health issues, or seventy-five or above irrespective of the health issues. Any type of life insurance policy of senior citizens - like variable life insurance, term life insurance, whole life insurance, or joint survivorship - is eligible for senior life settlement. Moreover, the face value of the insurance policy should be $250,000 minimum. Generally senior life insurance settlement companies purchase these policies from the senior citizens and submit all the necessary documents to the insurance company asking for the change of the ownership and the beneficiary of the policy. Once this is confirmed by the insurance company, the settlement company starts paying premiums and will receive the full policy amount on the maturity date or on the demise of the old policyholder, whichever is earlier.

Life Insurance Settlements provides detailed information on Cash Life Insurance Settlements, Corporate Life Insurance Settlements, Life Insurance Settlement Loans, Life Insurance Settlement Options and more. Life Insurance Settlements is affiliated with Insurance Settlement Loans [http://www.e-insurancesettlements.com].