Senior life insurance has guaranteed premiums that create a low investment risk. Since it is a kind of whole life insurance, it also has an increased cash value over time, but the low face value of the policy means that the cash value is minimal. This leads many to buy a high-level life policy for the benefits of family members, not for personal benefits. Senior life pays quickly and can reduce the financial burden that your family may experience while paying for the funeral expenses and other expenses before your property is settled.
What are the disadvantages of senior life insurance?
Family members do not always have the full value of the policy. This is because the senior life insurance has a waiting period for people who do not have excellent health status at the time of application. Depending on the current health status of the applicant, there may be a waiting period of 24 months to 36 months; during this time the payment increases slowly until it reaches the full face value. Very ill people may not be technically appropriate even for senior life, but a guaranteed problem policy may be proposed instead. Guaranteed trouble policies work similarly to senior life insurance, but have a full wait time of up to 36 months.
Many senior life insurance policies will immediately pay the full price, regardless of whether you are entitled to a full face value payment or subject to a waiting period, if you die due to an accident. If you need to die before a gradual or complete waiting period has expired, most insurance companies will return all the monthly premium payments you pay to your family. Some insurance companies may also add and pay accrued interests earned during the waiting period.