Life Insurance in Later Years: Non-Profit Resources

Life insurance might be difficult to get if you are over 65 years of age. However, it has actually  become more affordable in recent years as medical care has gotten better, because being an elderly person is now is not in the same risk category as it has been in the past. Non profit insurance policies are especially appealing in tough economic times. Some elderly people would prefer not to pay the higher premiums of with-profit policies just so their savings can be tied to insurance company portfolios that have low or even negative returns. Life insurance is the bedrock of a good financial plan. In the short term after your death, only life insurance can span the difference between the assets you had, and what  your family will need to manage your absence.

With-Profit versus Non-Profit Policies

With-profit policies allow you to participate in the profits of the life insurance company. Non-profit policies do not allow you to participate in their profits. With-profit policies try to achieve capital growth through a kind of collective investment. Non-profit policies offer a guaranteed return on your investment. With-profit policies also guarantee a certain amount, but this amount is increased every year with the addition of “reversionary bonuses”.  With-profit policies accumulate a surrender value that becomes higher every year you hold that policy. Premiums for with-profit policies are much higher than for non-profit policies. Non-profit policies will also probably accumulate a surrender value, but it will probably be low.

Life Insurance from the AARP

One of the most popular non-profit insurers among older citizens is the American Association of Retired Persons (AARP). You will need to be a member of the AARP in order to qualify for this insurance. As a non-insurer, the organization is able to offer this life insurance because it is underwritten by the New York Life Insurance Company. The organization offers both whole and term life insurance. Term life insurance covers you for a time while whole life insurance covers you for the rest of your life. There are many different coverages rates available. Coverage can range from a few thousand dollars to 50 thousand dollars. There is a provision for spouses as well. However, your spouse must be at least 45 years old. You will not even need to visit your doctor and take a medical exam to get this life insurance. You also do not actually have be retired to qualify. You can become  a member of the AARP if you are over fifty years old, and if you are a resident of the United States.

Do Not Smoke

Just as with for profit insurance companies, non-profit insurers will charge higher rates, or deny coverage altogether if  you are a smoker. If you are a smoker, you might want to consider quitting. After a year of not smoking, you are more likely to get coverage, or get coverage at a cheaper rate.