Life Insurance Articles
Everything About Life Insurance for Seniors
Life insurance is important – though it’s not a legal requirement like auto insurance, it still offers a variety of benefits to your children and family. People don’t like to talk about life insurance, mainly because they don’t want to think about death. Still, life insurance is ‘morally required’ because it’s your responsibility to do something to protect your family from running into trouble due to the loss of your capacity to earn an income.
Ironically, most people don’t take things seriously until they actually get in a position when it becomes a tad difficult to obtain a good insurance policy. For instance, it’s only after hitting their 60′s that most seniors realize they should go for life insurance – or update it because the existing coverage isn’t enough. You should understand that downplaying the importance of insurance could compound your family tragedy by turning it into a financial nightmare. Especially in case of seniors life insurance, which helps your dependents get some ongoing income to replace yours until the time they think they can live on their own. It’s equally useful for getting funds to pay legal, medical and funeral costs, in case your family is not able to afford it. Simply put, life insurance for seniors one sound way of providing your family with “replacement income” if you kick the bucket unexpectedly.
In addition, elderly life insurance will offer a number of other benefits. For instance:
- It will work wonders to help keep your family from dealing with financial stress. Not only will they be able to deal with the cost of final expenses, they will also be able to use your insurance policy to pay off any additional debt that you wouldn’t want to be covered by your family’s estate or your spouse’s retirement savings.
- The senior life insurance will also help bridge the gaps of social security. The problem with Social Security Benefits is that they often change when a spouse dies; moreover, it takes time to get some help from these programs (they don’t usually offer immediate benefits).
Basic Types of Seniors Life Insurance
Although you’ll be able to see a variety of insurance plans available out there, they usually fall in one of two basic categories. First of all, there is whole life insurance for seniors. This is actually a comprehensive form of insurance, which is also called ‘permanent life insurance’.
Whole Life Insurance
The policy pays out to the beneficiary you may have mentioned in your insurance contract – these policies don’t consider the age factor. The most important feature of this particular type of life insurance is that they come with an investment or savings component, which is usually supplemental to the original insurance coverage. This is generally another reason why you sometimes have to pay higher premiums for whole life insurance; however, the premiums may come down as you grow older. Many people opt for this type of insurance policy mainly because the payments generally stay the same for the total term of your policy. The other interesting features included in whole life insurance are favorable tax treatment, ability for cash value growth and permanent protection. The good thing with the feature of guaranteed cash value is that you can have access to your cash through loans as well as a number of other withdrawal options. But make sure you compare rates and review the financial status as well as reputation of different insurance providers before taking out a whole life insurance policy.
Term Life Insurance
Unlike whole life insurance, level term life insurance for seniors covers you for a specific term or duration. It helps your family handle their needs in the event of your sudden death within a pre-defined term. The term could be anything between 1 and 30 years, but it may be different (shorter) for elderly individuals. In case you’re interested in this type of senior life insurance, do keep in mind that they will not build equity as whole life insurance does. However, you should always take your time and, along with considering senior life insurance quotes, you should compare them for other features. For instance, it makes a lot of sense to select a term life insurance policy if it comes with a renewal option – it allows you to renew your policy if the term is up and you feel you still need coverage. Even if comes with renewal features, make sure if it renews automatically or you have to take an action. Moreover, it’s also a good idea to get in touch with your selected insurance provider and ask them if the premiums will remain fixed for the full term or they will change periodically. Some companies that offer life insurance for elderly tend to adjust premiums every few years, so it’s important to know the way things work while checking term life insurance quotes for seniors.
How to Find Low Cost Life Insurance for Seniors
Generally, term life insurance is less expensive as compared to its other counterpart – whole life insurance. However, it’s also a fact that life insurance rates for seniors for both types of policies will go up. Luckily, you can hope to get a better deal if you pay attention to the following points.
- Maintain a Good Credit History: Your premiums will depend heavily on your credit history. If it’s good and clean, you’re always going to have more insurance providers interested in accepting you as a client. For people over 65, it’s obvious to have a long history of financial responsibility, and if everything is clean – your mortgages are paid off, no credit card debt is there, etc. – you’re sure to get a good deal on senior citizen life insurance.
- Maintain Good Health Habits: Get in touch with your doctor and follow a better health plan. You may want to quit smoking or regulate your weight a bit before you start shopping for life insurance. Similarly, you should follow your doctor’s instructions to ensure that you have your blood cholesterol level and blood pressure under control. Doing all this may trim down your premiums a bit, which is mainly because you won’t be considered a risky candidate if you maintain good health. If you don’t maintain a good health, you might have to obtain high risk life insurance.
- Pick the Right Amount of Coverage: Sometimes, it doesn’t make sense to have a coverage worth of hundreds of thousands of dollars when you only want a death benefit. Therefore, it’s important to determine your needs and then decide the amount of coverage you require.
- Contact a Specialist: In order to find the best policy, you should contact an insurance agent who specializes in helping older citizens. It is so because they will have enough information to guide you in the right direction.
- Use Online Insurance Providers: With so many insurance companies and comparison sites available online, it’s a good idea to use them to obtain guaranteed life insurance for seniors. Make sure you get life insurance quotes for seniors from several insurance providers and compare them keeping your needs in mind. This is a surefire way of getting enough coverage for less.
Finding life insurance for seniors over 65 is not that difficult as it was a decade ago. With several insurance companies in business, it’s possible to find a suitable insurance plan for you. Still, the fact remains that not all insurance companies are willing to take this risk, and it’s mainly because they don’t realize that 65 is the new 45 for senior citizens. The companies that realize this fact come up with different insurance plans for the elderly – they have different plans for seniors who are now grandparents and raising grandchildren, as compared to those who are alone and their kids have moved out. Top insurance companies do realize the difference between the rocker on the porch grandparent and an active or involved grandparent; therefore, they’re always able to come up with suitable policies and insurance plans.
The progressive and dynamic companies that offer life insurance for seniors over 60 now understand that you may or may not be the same as everyone who is your age. It is due to the same reason that you will have to conduct some research to find a progressive company that helps you find the policy you need, regardless of your sex or age. It’s true that life insurance seniors will definitely have higher rates, but it’s important to ensure that you’re falling for a plan that meets your needs.
One good way of finding cheap life insurance for seniors is to take advantage of comparison sites that generate quotes within seconds, and at the same time, help you make a choice considering the features of different insurance policies for seniors. Number of years working, savings account, years to retirement, investments, annual income, number of children, and mortgages are the most important factors that play into figuring out how much coverage is enough for you and your family. And NEVER forget that each kind of insurance plan will have benefits and drawbacks, which is why obtaining quotes from different companies will help find the right coverage for your family.