Senior term life insurance is the same thing as regular term life insurance, only it is targeted at seniors aged fifty to eighty-five. These insurance policies are a legal and binding contract between an insurance company and the buyer of the contract. The general overall goal for purchasing such a contract is to ensure in the event of your death there is something left behind for those who were the beneficiary of such a policy.
Term life, unlike whole life, does not accumulate a cash value. The sole purpose of a term life policy is to ensure that you are protected in the event that you, the purchaser should die. This means that the only way to collect on insurance is if the policyholder were to die.
Term life insurance is generally preferred over whole life insurance because it does not require a huge investment, and the policy premium itself is inexpensive. Term life also offers the same benefits to you as anyone else.
Many life insurance companies are out to get a quick dollar off of whoever they can. This means even at the expense of committing fraud. Many companies have a hidden clause in their contracts. These clauses can in many events relinquish any and all legalities and obligations which may force an insurance company to pay out.
Never purchase any type of insurance or enter into any binding contract until you are sure of what you will be getting. Not everyone will be eligible for certain benefits because of their risk factors with certain health issues. Always consider both the pros and cons of any contract.
The main thing that seems to make term life insurance so sought after is the fact that even someone on the tiniest of budgets could afford to purchase a policy. Unlike whole life that stays with you, term insurance is purchasable for terms in increments of five years. So you can decide whether to renew it or not at regular intervals.
Keep in mind that, only whole life insurance policies are worth something to the actual policyholder. Insurance policies values decrease as the economy enters into recessions. This means that cashing out an insurance policy may be not worth it. You also need to remember that the older you become, the more expensive an insurance policy will be for you. The reason for this is because many issuing companies associate elder’s age with health problems and potential health risks. Another thing that can affect the cost of a policy, as to whether it will be a low premium or a high premium is if you are a smoker. The reason for this is because smoking causes upper respiratory illnesses.
You can cancel term life policies without losing any money at all. This gives seniors considering purchasing policy confidence and peace of mind that they are not being locked into a long payment period. There is an increasing number of seniors that trust term life insurance these days. Let’s face it, just because you’re a senior, doesn’t mean you’re not capable of deciding what legacy you want to leave to your beneficiaries.
Here are three senior term life insurance options that you may consider depending on your health status and your preferences.
1. General Policy
If your life coverage was provided by your employer and you have retired, you may find yourself without cover after retirement. However, some insurance companies provide employees who have just retired an option to renew their former policy if the renewal is done within a given period. You may opt to either renew or seek out new coverage altogether.
2. Non-Medical Option
A non-medical senior term life insurance policy is available to senior citizens who do not wish to take a medical. If you are over the age of 65 and wish not to take a medical, you can opt for this policy. However, you may have to pay a high premium and there is a low limit on the amount of sum insured that you can have.
3. Guaranteed Option
Another option available to senior citizens is the guaranteed senior term life policy. This is ideal for people who have an uninsurable condition and they are aware of it. This policy guarantees coverage for anyone who applies. The policy does not come with a medical and you are not required to answer any questions about your health or that of your family history.
What is some of the factors you may consider when choosing a senior term life insurance policy:
· Right time to buy insurance
Many of the companies provide insurance coverage to people up to the age of 85. However, you need to understand that the insurance rates vary between the ages of 60, 70 and 80. Therefore, the right time to consider insurance is now – at your present age – because you will be evaluated based on today’s rates. Waiting a little longer may cost you a little more.
· Simplified issue policies
If you are a senior with health problems and you are looking for the right insurance coverage you will find no-medical exam insurance plans from several leading insurance companies. The cover may only seek for answers about your general health without demanding a medical check. With this type of insurance, the coverage can begin from day one. However, plans with no-medical exam carry higher premiums.
· Cost of insurance
The face value of the seniors’ insurance varies from company to company. If you are in good health and have a good family health history, cheaper rates will be at your disposal, saving you a substantial amount of money. You stand to benefit from instant quotes obtained from the instant quote page. However, when choosing insurance based on price it is advisable to consider other factors including the cover. You may not want to choose a policy that is priced the lowest only to discover its coverage does not cater to your needs.
· Type of insurance
Most of the creditor insurance policies end at the age of 69. Therefore, people who are currently retired or approaching the age of retirement and are in good health should opt for the individual life insurance policy instead of creditor insurance. The individual life insurance option is portable. Therefore, if you choose to move to a new residence or switch banks you can still maintain your coverage.
· Last-to-die coverage
Many insurance companies offer last-to-die coverage at competitive rates. This type of insurance helps with estate planning in addition to paying out the tax-free death benefits when the surviving spouse dies. The insurance benefits are often paid further into the future.