Senior Life Insurance
As with any insurance, your goals should dictate the kind of insurance you buy. Usually the majority of life insurances that seniors possess offer small death benefit. In the same time, it is the death benefit that can help in solving medical bills and arrange funerals. Since no one, in life or in death wants to bring about any financial difficulties to their relatives the second look at life insurance is important.
Life insurance is thought to be hard attainable for seniors, that is why getting older people are feeling less confident in buying life insurance. Seniors suppose they will not qualify for it. Nevertheless, in fact most states obligate insurance companies to provide coverage for seniors. Moreover, most companies think it is profitable to offer life insurance to seniors as the population of elderly people is growing.
Life insurance is a great opportunity to provide beneficiaries with money, as inheritance taxes, and creditors fees have nothing to do with death benefit.
Here are four main types of life insurance that may interest seniors:
Option# 1
Term Life Insurance. Term life insurance is a great option for seniors with stable income, who by no means consider life insurance to function as an investment opportunity. Those who prioritize leaving survivors suffice of money and don’t actually need cash value prefer Term life insurance.
Option# 2
Whole Life Insurance. With modern achievements in the sphere of healthcare and diet, people leave longer than they used to. In this case, it may be too confident of any senior to think that he or she will not be able to outlive a term life insurance.
Whole life insurance in comparison with term life insurance protect you for whole your life. It has fixed premiums that will not increase over years. In addition, the whole life insurance includes cash value, the accumulated amount of money that you can borrow or even pass on to your successors on tax-free basis.
Whole life premiums, however, can be much higher than term life premiums.
Option# 3
Single-pay Insurance. Single-pay insurance is very convenient if you want to adjust insurance policy to the criterion you consider most important: pass on to heirs as much money as possible. A $100,000 policy paid for with one premium is possible to increase twofold or even threefold overnight. The death benefit is tax-free, so your heirs will get the money you want to pass on. The only thing is to save enough money, that you are not inclined to spend on daily life needs.
Option# 4
Guaranteed Acceptance Life Insurance. Life insurance companies usually offer best premiums to the seniors who are ready to pass specialized health check. However, there is a life insurance that does not require its clients to pass medical examination. A Guaranteed Acceptance Life Insurance (in the form of universal life insurance or whole life insurance) pays a full death benefit without requiring medical examination data.
In respect of a full death benefit, however, there are two important points:
- Full death benefit is paid only after the lapse of two years after the buying of the insurance.
- In case of unnatural death a full death benefit is paid despite of the date of buying of insurance.
A limited death benefit, consisting of the premiums paid plus interest, is paid if a policyholder dies naturally during the first two years of the policy, which is necessarily to avoid dishonest way of getting death benefit from “death bed” policies. When the period of two years is over a policyholder will gain a full death benefit.
The variety of options may confuse you, remember, however, that your policy should meet real needs. Contact an insurance professional for consultation and feel free to choose any of the options given. |
