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John aspires to be an attorney who can help the people, families, businesses, and special interest groups of Northeastern Ohio and Western Pennsylvania achieve their goals. His practice areas include estate planning, firearm trusts, Medicaid planning, asset protection, business succession planning, and probate.
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Should Life Insurance Be a Part of My Estate Planning?

August 4, 2023
Life insurance can be the ideal way to protect both yourself and those you care about. However, individual insurance companies can put age-related restrictions on life insurance policies.

Yahoo Entertainment’s recent article, “Could This Life Insurance Policy Save Seniors Cash?” says that age can significantly affect life insurance policies and may lead to trouble getting coverage.

However, what applies to one insurance company may not apply to another, and the type of policy also matters.

Age can greatly affect how much you pay for your life insurance policy. As you age, you become more at risk of dying, which is a risk of payout for a term life insurance policy or can be fewer years you pay on a whole life policy. Insurers typically give the lowest rates to the policies that they believe will pay premiums for the longest time.

Term Life. If you’re still pretty young, term life insurance may be a good choice, as premiums are frequently low relative to the amount of coverage. These policies usually have terms of 10, 20, or 30 years, but you may have fewer options as you age. Plus, fees may also increase, making this one an option but not necessarily a great one.

Whole Life. This is sometimes a better selection for older Americans because it remains in effect until the end of your life. It typically has higher premiums than term life but comes with a permanent death benefit. It also has a cash value against which you can borrow a loan while still alive. These policies are also less likely to require a medical exam than term-life policies, so this may be a better option if you have pre-existing health conditions.

Universal Life. This is like whole life insurance, as it comes with lifelong protection and a cash value. The premiums will be high, but you can typically be covered up to 100 for many policies. Generally, universal life differs from whole life through premiums and the death benefit. With whole life, both are fixed, but with universal life, both are flexible.

Guaranteed Universal Life. This insurance is a hybrid of whole and universal life insurance. The premium is guaranteed, but you have flexibility with your death benefit.

Final Expense Insurance. This permanent policy is usually available to adults up to the age of 85. These policies usually only cover your end-of-life expenses, like funeral costs and medical bills.

Contact Attorney John Hoffman, Jr. to learn more or book a free consultation.

Reference: Yahoo Entertainment (Aug. 23, 2022) “Could This Life Insurance Policy Save Seniors Cash?”

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