Life insurance for seniors – is it worth it?
Should I still take out end-of-life insurance with more than 50, I will still benefit from endowment life insurance at 60 – and which insurance is worth more than 70? The good news is that there is a suitable provision for every age group. We explain who is best for which offer and why a life insurance policy can also be useful for seniors and best agers.
Which life insurance for which seniors?
Basically, there are two types of classic life insurance, term life insurance and endowment life insurance.
For whom is the life insurance suitable?
The endowment provides equal double protection: In case of death, the agreed sum insured is paid to the relatives, the survivors are hedged. At the same time, this is certainly saved: during the savings phase, the policyholder builds up a sum – which at Hannoversche is quite attractive thanks to low fees, good interest rates and surpluses. And on the pay-out date, he or she can then choose whether the money is to flow as a single sum or as a lifelong pension. Which variant is recommended depends on several factors. Get the best advice from our service experts .
The great combination of death and experience care, however, also has its price: the contributions are naturally higher, if you want to build a noticeable cushion in a short time.
Who is the term life insurance worth?
A term life insurance is also available for older already for significantly lower premiums than for example the endowment policy. However, it is only suitable for the protection of the surviving dependents: no capital is built up which is paid out at the end.
It is especially useful when financial obligations have to be met, such as the credit for home or apartment. In the event of death, the survivors are covered. It also continues to help if the beneficiary has only built low pension entitlements – if the policyholder dies in advance, the beneficiary’s future is at least financially strengthened.
It is also ideal for unmarried couples who, by law, are not entitled to a widow’s or widow’s pension and can protect each other. A special feature is also the so-called ” affiliated life insurance “: Here connect two partners a contract, saving contributions. So you secure each other cheap.
Men benefit, smokers pay
For some years now, sex can no longer play a role in the calculation of insurance premiums – the unisex tariffs apply. Good for men who are interested in a life insurance policy: statistically, they have a lower life expectancy and benefit from even lower premiums.
However, the exact amount depends on the state of health of the individual insured person. All life insurers therefore submit the so-called “health issues” before concluding the contract. The rule is: Honesty lasts the longest, because whoever makes untrue information risks his insurance cover.
Smoking is classified as particularly harmful and makes the insurance accordingly more expensive. Who has smoked within the last 10 years, unfortunately, with surcharges.
Death benefit insurance: The alternative for all
But even for those with pre-existing conditions and possibly a lifelong love for the cigarette or pipe, there is a helpful form of financial provision in financial terms.
Everybody is admitted until the age of 75 and after two years, in case of the case, the entire sum insured will be paid. And if the death occurs before, no dollar is lost: All paid contributions flow back to 100%.
One of the factors that most influence when determining the price of life insurance is age. For obvious biological issues, the older we get closer we are going to die. This obviousness is what makes the price of life insurance, exceeded a certain age, become expensive. Other factors that will be taken into account when determining the price of life insurance for the elderly are the family charges, the mortgages, the age of the children … And of course, the more coverage the contracted life insurance has, the higher the its price.
However, the outlook in recent years has changed. The increase in life expectancy, which is average in Spain in the 83 years, almost three years more than the average of the OECD countries, and an increasingly prolonged labor stage have caused a rethinking of the options for Life insurance for over 50s. The sector has realized that, in these situations, many claim to be able to protect the family economically if they die, especially if they are the main source of income for the family unit.
If the person taking life insurance is older than 50 years, they must undergo a medical examination by the insurance company. This examination is carried out to determine the health of the insured and to adapt the policy to the characteristics of the policyholder.
What options do I have if I am over 50 and want to buy life insurance?
The two main options offered by the market for those who have passed the age of 50 are the following:
• Life insurance risk: When the policyholder dies, the beneficiary receives the money from the policy. The person who hires this type of life insurance pays a premium, a specific amount based on the money he wants the beneficiary to receive, an amount that can be modified at any time.
• Life savings insurance: This is the most attractive option for those who wish to supplement the public retirement pension. The policyholder pays premiums and the company offers a return for it. In addition to some important tax advantages, the strong point of this life insurance is that the accumulated capital is paid in the form of life annuity, that is, it makes savings become a monthly income for life.
• Dependency insurance: They act in the face of the reduction of the autonomy of the person, even if they are not life insurance. The insurer covers the expenses that the dependence entails.
In the first two modalities, the beneficiaries, in case of receiving capital from life insurance, will have important tax advantages that, otherwise, they would not have.
If you are thinking of taking out life insurance in any form, it is important to have specialized advice, regardless of age and investment profile. It is convenient to approach an office and ask about the available options that best suit each person’s personal case.
Life insurance can stipulate a series of limits in the contract:
• Time limit Caution taken by the insurer in certain cases.
• Death limit for the practice of risk sports. In the event of death for this reason, coverage will not be activated.
• Limit for serious illness. If the ailment is known prior to the signing of the contract, it can also be cause to cancel the coverage.
Keep in mind that life insurance also includes a series of extra coverages that, if appropriate, it is possible to contract.
• Coverage for serious illness. The type of diseases that fall under this chapter is stipulated by listing.
• Coverage for permanent or absolute disability. The payment of contracted capital is advanced if the disability has taken place in the professional field or in the personnel.
• Coverage for traffic accident. It is an extra in case of death or disability.