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Senior life insurance offers coverage for senior people that aged 55 years old and older. Senior policy buyers need a life insurance that has small face amounts. After your children had grown up, you can retire. However, you still have expenses and need to support your spouse. With life insurance, you will be able to reduce the estate liabilities.

There are two types of senior life insurance including term and permanent insurance. Term senior life insurance will pay for the compensation if the policy holder happens to die during the policy term. Permanent senior life insurance will offer coverage for the whole life of the policy buyer. Insurance companies usually charge a higher premium in the early years because of the high pay out cost as a person grows older. When a person grows older, he will lose the ability to work and bring in income. Therefore, the insurance will charged higher in the early years and invest the money to earn profit. Later, the insurance company will use the profit earned from the investment to supplement the premium and compensate the life insurance cost for senior people.

Many people did not let the insurance company make payout. This is because they sold the insurance policy to the investor. Lots of investors are willing to pay 20% of the face amount if the policy buyers meet the requirements. Statistic has shown than 90% of life insurance policies did not pay out. The reason is because many people choose to stop making payment and let the policies expire. Another reason is that they sold the life insurance to the investor. However, it is recommended that you maintain an active policy so that you can leave an inheritance to your children.