What Kind of Whole Life Policy is Best for Seniors?

Insurance is a necessity through every stage of life. When you are just starting your family, this type of coverage makes it possible to take care of your family even if disaster strikes. As you grow older, having enough life insurance will help your aging spouse maintain your current lifestyle even after your passing. Still, many seniors are left wondering what type of insurance to hold as they grow older. Whole life offers the opportunity to use your premiums to grow your policy. Sometimes considered an extra savings safety net, whole life comes in several different varieties.

4 Types of Whole Life Insurance Policies for Seniors:

  • Universal Whole Life
  • Variable Whole Life
  • Joint & Survivor Whole Life
  • Income Based Whole Life

Universal Whole Life

Universal whole life is a type of whole life that is popular amongst seniors. Differing from a traditional whole life policy in the way premiums are set, this type of policy allows you to change the amount of your premiums (within certain limits), thus changing its cash value. Highlights:

  • Premiums can be altered depending on your income
  •  The cash value can be raised by simply increasing your premiums
  •  Offers a consistent death benefit regardless of any premium changes
  • The policy’s cash value can be sued anytime; even prior to the policyholder’s death
  • Accrued cash value will be paid upon the policyholder’s death

Variable Whole Life

This is a good investment tool for those wishing to use the cash value their policy accrues to invest in mutual funds or other stocks and bonds. By using the cash value as investment capital, the policyholder can increase its value over time. Highlights:

  • Death benefits remain set
  •  Cash value can be sued for investments
  • Cash value can vary depending on successful investing
  • Premiums remain stable

Joint Survivor Whole Life

This type of whole life policy is a good option for seniors since it covers two people (usually couples). It works by paying when both people listed on the policy have died. A joint life plus survivor policy can be paid out after either the first or second death. Keep in mind that only one benefit will be paid although two people are technically insured. Highlights:

  • Much lower premiums
  • Helps pay estate taxes
  • Benefits can be disbursed after first or second death


Income Based Whole life

This is a type of whole life policy that insures the beneficiary a set monthly income for a certain period of time. Instead of disbursing the entire death benefit at once, it is disbursed in monthly income increments for a period of 5, 10 or 20 years. Highlights:

  • Insures the beneficiary of a set monthly income
  • Offers financial safety
  • Continues to earn interest
  • Gives policyholder piece of mind

Life Insurance a Fact of Life for Seniors

Life insurance seemed very important when your family was young, but now that you and your spouse are aging, it may be even more important. Establishing the proper whole life policy can make a big difference in the lives of those left behind. Make sure that your spouse is taken care of with one of the specialty whole life policies discussed. While a universal policy lets you have access to its cash value while maintaining the main death benefit, some people prefer a variable whole life policy that allows you to invest the cash value, thus increasing the policy’s value.

For those who want to make sure either living spouse has a regular income, an income-based policy may be the answer. When looking to keep premiums down, seniors may opt or a joint survivor policy which insures both partners, but only pays out one benefit package. With so many whole life insurance policies available to today’s seniors, it is possible for everyone to get their insurance needs met – and protect your aging spouse’s future.

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