Although there are many seniors who can still easily obtain approval for life insurance, there are others who may not be able to do so due to various health related conditions. That doesn’t negate the need for having life insurance protection. The good news is that now there is a viable solution for obtaining coverage through policies called rapid decision senior whole life insurance.
Life insurance is one of the most important purchases that you’ll ever make for your loved ones, but there are a lot of people that don’t think they can be accepted for coverage or assume that their policy will be too expensive for them to afford. Both of these ideas couldn’t be further from the truth. Regardless of your age and health, there are affordable life insurance options to give your family the insurance protection that they deserve.
What Is Rapid Decision Senior Whole Life Insurance And How Does It Work?
RDSW life insurance is specifically designed to meet the needs of those who are in the age group of 50 to 85 years old. This is because this coverage provides a type of final expense death benefit protection, along with a tax-advantaged cash value accumulation.
With this type of life insurance plan, a partial amount of coverage will be provided to a named beneficiary if the insured passes away within the first couple of years that the policy is in force. However, if the policy has been owned for several years before the insured passes away, the named beneficiary (or beneficiaries) will receive the full amount of the policy’s death benefit proceeds.
Just like with other types of life insurance policies, the death benefit proceeds will be received income tax-free to the beneficiaries. This means that no federal income tax will be due from the beneficiaries on the amount of these proceeds. Although it is important to note that these proceeds could still be subject to estate taxation.
Also as with other types of permanent policies, the cash value that is within these types of policies is allowed to grow on a tax-deferred basis. This means that the funds can grow without being taxed until the time they are withdrawn. Therefore, funds can essentially compound exponentially over time.
In most cases, the face amounts of senior rapid decision policies can usually be anywhere from $10,000 to $150,000. This death benefit amount will typically depend on the age of the insured at the time that he or she initially applies for the coverage. These policies will usually mature, or “endow,” when the insured reaches age 121 – provided that the policy is still in force.
Unlike traditionally underwritten policies, a rapid decision whole life policy will not require a medical examination in order to qualify for coverage. This means that there will be no need to undergo providing the underwriters with a blood and urine sample in order to qualify.
Typically, an applicant’s approval for coverage will depend primarily on the answers to just a few simple questions that are answered on the application for coverage, as well as information that is obtained via the Medical Information Board (MIB) and possible certain other sources such as the applicant’s pharmacy records. Because there is no in-depth underwriting that is required, often a policy’s approval process can take as little as 24 to 48 hours.
Because the individuals that usually obtain rapid decision coverage are often considered to be more risky than those who buy traditional coverage, the premiums for this insurance can be higher than for policies of comparable coverage. However, once qualified for a policy of this type, the premium amount is typically locked in throughout the remainder of the life of the policy.
Who Is A Good Candidate?
While rapid decision senior coverage may not be the right choice for everyone, there are some people who may be ideal candidates for this type of coverage. These individuals may include those who are in the age 50 to 85 age category and who may also have certain types of health conditions which deem them unable to obtain traditionally underwritten coverage. Because this type of coverage does not expire – unlike term policies – this type of protection is also good for those who want lifelong insurance coverage.
It is important to note, however, that even though rapid decision senior policies are designed for those who are considered to be seniors – in the age bracket of 50 to 85 – and who may not be in perfect health, those who have extremely serious health issues, or those who have a limited life expectancy may still not qualify for this coverage.
These rapid decision policies typically tend to be more expensive than other policies that require you to go through medical underwriting. With these policies that don’t require an exam, the insurance company doesn’t have as much information on your health, which means they are taking more of a risk to insure you. The more risk that they are taking, the more they are going to charge you for protection. If you think that you can be accepted for traditional coverage with a medical exam, in just about every case, those plans are going to save you money on premiums.
How To Find The Premium Quotes
When seeking the very best life insurance premium quotes, it is typically best to work with a company or an agency that has access to more than just one single insurance carrier. This is because you should ideally compare policies, benefits, and premiums in a direct, yet unbiased manner in order to determine which will work best for your particular protection needs, as well as for your budget.
In doing so, we can help. We work with many of the best life insurers in the industry today, and we can help in getting you all of the pertinent information that you need in order to make the most informed decision possible about your life insurance coverage. We can get you this information quickly and easily and without having to meet with an insurance agent. We can also help if you are looking for life insurance for your parents or even AICPA life insurance. If you’re ready to move forward, use the form on this page to get your quotes.
Should you have any questions at all regarding RDSW policies, or about how to obtain a life insurance premium quote comparison, please feel free to contact us directly via phone. We can be reached toll-free by calling 334-380-4188.
We understand that there can be a lot of variables present when purchasing life insurance – and it does tend to seem a bit confusing. That’s why our experts are here to help. So, give us a call today and see how we can assist you in getting the life insurance protection that you need for the peace of mind that your loved ones deserve.
Because you can’t predict the future, you never know what’s going to happen tomorrow. You shouldn’t’ wait to get the insurance protection that your family deserves. Call our agents today and we can find the most affordable insurance plan for you and your loved ones.