So what do you do when your employer canceled your life insurance? Sears retirees need to get in line. The former retail giant is canceling retirees’ life insurance payments while they try to avoid bankruptcy.
This key retiree benefit was worth between $5,000 and $15,000 for most of the pool of retired employees. That life insurance benefit would have been paid out to the beneficiaries upon the passing of the former Sears employee.
In some ways this arrangement is unusual. Most seniors retiring from work do not have the luxury or option of continuing life insurance coverage through their former employer. Instead, they need to contact carriers directly or through independent agencies to secure life insurance coverage. Step number one when you find your life insurance canceled is to contact an independent agency.
Final Expense Life Insurance
While many of the 29,000 retirees may be considered uninsurable, there are plans that still may be available. One type of life insurance plan is known as a “Final Expense” insurance policy. These policies are available to seniors aged 50 to 85 and range in value between $2,000 and $35,000.
The plans that are available are issued with no medical exam required and a few health questions are asked to determine suitability.
Existing Medical Conditions
Of course, that’s not going to be helpful to the senior who has developed serious medical conditions and is uninsurable based on those conditions. Typically carriers will deny coverage if they spot cancer, COPD, CHF, or other serious medical condition in your reports.
One option for retirees that have serious medical conditions is a Guaranteed Issue policy. A guaranteed issue policy is just that. The retiree can not be turned down just because of medical problems. No health questions are even asked.
Small consolation though. The retiree now must begin paying premiums when in the past the company had it covered.
It’s always a good idea, even if you have a life insurance policy at work, to put a whole life policy in place so that it is ready when you retire. The cost will be a lot less expensive when you are younger and in good health.
Pricey Life Insurance Premiums
The premiums can range from fifty dollars a month up to hundreds of dollars per month based on the amount of the benefit chosen. That may be difficult if the retiree is on a fixed income and has not budgeted for this new expense. Seniors that are living on fixed expenses have several options to review at TOP 100 Senior Blogs especially when it comes to senior living and eldercare.