Purchasing life insurance for seniors, especially those beyond the age of 70, should not be as complicated as you may think. Although some insurers may ask for higher premiums and other fees, the extra charge may be very well worth it, as your insurance needs may be much more than the average worker 50 years old or below, for example. What you will have to identify before you buy a life insurance policy is similar as to what you would ask as a younger buyer: how much coverage is offered, and how long the plan will be in place.
If you are over 70, there are some things that you have to receive from your life insurance coverage. For one thing, the plan should be able to provide you with immediate coverage, which simply means that should the policyholder pass on soon after the policy is implemented, plan beneficiaries will receive the full value as stated in the insurance contract. Keep in mind that cash value can be a nice bonus, but it should not be the main reason why you sign up with a provider for a certain insurance policy. Some experts say that policies providing full endowment will give the senior or any plan beneficiaries the full cash value of the plan once the policy reaches maturity or end-of-term. However, this may not exactly be a prime advantage as the cash value, in comparison to the face value amount, may be subject to considerable taxes.
In this case, you or your beneficiaries may feel the disadvantage if an expected tax-free policy payout turns into a taxable amount if you live beyond the end of the term of the policy. If you outlive your whole life coverage, for example, you should try to request a coverage extension, rather than take the cash payout.
For older seniors who are more likely to require extensive assistance due to a chronic illness or serious disease that could be aggravated by age, purchasing an insurance policy that comes with a terminal illness rider may be beneficial. This rider often comes at no extra charge if you request for its inclusion in your coverage. This type of insurance policy rider that specifically applies to life insurance for seniors can give the insured retiree access to part of the face amount prior to his or her passing on if he or she suffers from a diagnosed terminal disease.
Katherine Smith is an author who specializes in financial topics concerning seniors. Puritan Financial Group gives seniors professional retirement income planning advice and life insurance products. For more information on how Puritan Financial Group can help you, please visit our website at http://www.puritanlife.com/products/life/life_insurance_for_seniors.
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Life insurance policy needs are usually different at different stages of an individual’s life. When you’re just starting out as a young, single adult, you may see little use in getting your life insured.
As you grow older, so do your responsibilities. You may have dependents who rely on your income to subsist and you need to ensure their financial security in case you’re no longer around to care for them.
Then you reach a stage of greater financial stability where your kids have been through college, the house has been paid for, other consumer debts taken care of, and you probably have money put away for retirement.
At this time in your life, your need for life insurance could be significantly different and you could do well to revisit your policy.
The question you, as a senior, must ask yourself is whether it’s term life or whole life insurance that you need now.
Term life insurance, as the name suggests, provides coverage only for a specific period of time. Term life insurance is usually recommended for young families that are starting out and have dependents, mortgages, and other financial commitments, but limited resources.
As it’s relatively inexpensive, it allows younger people to buy considerable insurance on their life at very low premiums. The purpose of term life insurance is pure coverage in the event of the insured’s premature death and it has no “investment component”. The only way term life insurance can be cashed out is if the policy holder dies.
The biggest benefit of term life insurance is its affordability. However, the premium rates keep rising as you age. Therefore, if seniors were to purchase term life, they will lose out on its cost benefit as the rates offered to them would be considerably higher especially if they are not in the best of health.
They would also need significant amount of savings to live a comfortable life post retirement and meet any unexpected medical expenses associated with old age. That’s why whole life insurance policy is recommended for older people.
Whole life or permanent life insurance, unlike term life, offers coverage for your entire life as long as the premiums are current. In addition to providing coverage, whole life policy also builds cash value.
Because it provides continual protection and has a savings feature, whole life insurance policy is more expensive than term life. Even so, whole life insurance is believed to be a better bet for the retired or nearing retirement folk for several reasons.
Term life insurance provides coverage until the age of 75, where permanent life insurance remains in force for your whole life.
You need to have reached a certain financial ability to afford whole life insurance. Older people generally have lesser financial obligations and can afford higher premiums more easily than those who are starting out.
You can cash the policy out for the accrued value in case of an unplanned medical emergency or even use it as collateral for loan. In short, whole life insurance acts like an asset that can be used at the time of need.
Unlike renewable term life insurance premiums that generally increase with age, the premiums on most whole life insurance policies remain the same over the years.
The insured can have the peace of mind that whenever their time comes, which is more of a concern as you get older, there will be guaranteed coverage for their partner.
Most whole life insurance policies offer dividends that can be added to the cash value or death benefits.
Proceeds from whole life insurance can be used to pay for the funeral and other final expenses when the insured passes on.
Seniors can also buy a whole life insurance policy as an estate or legacy for their grandchildren.
A smaller whole life insurance policy would generally not require you to go through a health examination, which works well in case of declining health.
However, whole life insurance is a long term commitment that one should consider purchasing only if they are confident of keeping up with the payments. Letting your whole life insurance policy lapse because you’re unable to pay the required premiums can spell disaster for your financial plans and should be avoided at this crucial juncture of your life!
AccuQuote is a leader in providing term life insurance quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.
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During your lifetime there are many different types of insurance policies that you can purchase. Most people have some sort of arrangement for the unexpected; loss and damage to property, health problems, earning ability, as well as their children’s future care. Then you also plan for the expected; policies for children’s education, weddings, general well-being and medical protection come into the ‘expected’ category. Very few families can go through life without the need of doctors, hospitals and medicines. Also in the ‘expected’ category, though most unwelcome, is the group of insurance arrangements for funeral. Funerals can be expensive, and whether or not your family intends to spend a lot of money, these expenses usually need to be settled quickly and urgently. It is very unlikely that selling off properties or bonds is going to raise the amount you need in time.
The property and money of the person whose funeral it is will in any case be frozen upon his death until probate of his will is reached.
Probably the heaviest expenses for most people who lose their lives are those that are incurred immediately before and after their death. Depending on the cause of death, these may involve vehicle accident expenses, hospitalisation, sick care and nursing at home in the case of chronic illness or stroke. There are usually many other expenses involved in a funeral that are normally not covered by a funeral policy. Family and friends may need to travel long distances and stay of several days. All this costs money. Extra catering and help in the house on the occasion of the funeral need to be paid for. At a time when extra stress is not tolerable for those left behind, a need for finances may possibly run high to pay for caregivers if there are children or other elderly people who need to be looked after.
The solution to this problem is to invest in a Final Expense Life Insurance Policy.
Most Insurance companies who offer this kind of policy will sell cover for up to $ 100,000 maximum. They generally recommend a minimum of $ 10,000 up to about $ 50,000 for most people.
The cost of Final Expense Life Insurance policy will obviously depend upon the age at the time of application. You may be applying for a policy for yourself, your spouse, or both or you may be applying for a policy for elderly parents or relatives. Since most applications involve people who are 75 years or older, the premiums will be quite high.
You need to remember that there are different kinds of Life Insurance Policies, Graded Death Benefit policies, as well as Final Expense Life Insurance Policies. There are all sorts of requirements and pre-conditions for the various policies. In order to find out which policy will suit you and be the most beneficial to your circumstances, it would make sense for you to discuss the matter with a trained life insurance professional, who can answer your questions and advise you.
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