Life insurance is a form of protection against any financial difficulties or losses suffered by loved ones after your death. By making regular small payments, you can ensure that after you are gone, your family will continue to receive financial help from the insurance cover. Life insurance could be beneficial to retirees in some circumstances, such as if you have a financially dependent spouse or children. Some types of life insurance policies are specially designed for senior citizens, and provide life insurance no health questions asked.
Most people do not require life insurance during retirement, as children have become independent, and there is a steady flow of retirement income from other sources. However, if your retirement income depends on you, and if your spouse or other family member stand to suffer financial hardship from your death, then a life insurance cover may provide suitable protection.
Insurance calculations are based on risk, where the provider works out how much you need to pay in by weighing the risks involved in insuring you. As such, when it comes to life insurance, where, essentially your life is being insured, your health and life expectancy play an important role in determining whether you can be insured. However, there are some providers that provide life insurance no health questions asked and no health check-up is needed.
While life insurance policies based on a health examination calculates the risks and works out pricing accordingly, life insurance providers that operate on the ‘life insurance no health questions asked’ basis usually understand that their potential customers have some type of health condition, which is true for most retirees, and so price their insurance products accordingly. This means that the ‘life insurance no health questions’ policies tend to cost more.
Some retirement insurance policies do not need a comprehensive health examination in order to be considered, but, as opposed to the life insurance no health questions at all policies, do have a health questionnaire that needs to be answered. As some type of health considerations are made, these policies tend to cost less than the policies where no health considerations are made.
The life insurance no health questions policies usually last for a fixed term, such as a five year term, after which they must be renewed. These are known as term insurance policies. At this point, the premium is usually recalculated and increases. The policy can generally be renewed up to a certain age. After this point, customers have the option of transferring to a permanent life insurance policy, which provides cover not for a fixed term but until the end of life.
For those who purchase life insurance during retirement, they obviously do so to meet specific needs. For such people, a term insurance that cannot be renewed after the age of around 80 years can be of no use if they continue to live beyond that age. For these people, permanent life insurance seems to the answer. There are insurance providers who provide permanent life insurance no health questions asked. There is also no health examination to be taken in order to determine eligibility.
Obviously, insurance policies, whether they are term or permanent which operate on ‘provision of life insurance no health questions asked’ basis, cater to a specific market, for people who have limited insurance options owing to pre-existing health conditions. As such, the policies are higher priced, and there is limited scope for shopping around.
Having said that, it is still possible to shop around among such insurance policies and find one that suits you best. As with any other insurance policy, or indeed financial product, it is important to compare different products, and as far as possible, get quotes. Online comparison websites for insurance have tools that allow you to compare different products.
Also, as with any other financial product, even with ‘life insurance no health questions’ type of policies, and insurance policies aimed specifically at pensioners, it is important to understand the policy fully before signing up. Careful planning and investment is especially important during retirement, and so it is important to be cautious and sign up for something only after fully understanding the consequences.