Is life insurance necessary for senior citizens? Will they be able to manage without it? Both these questions can be answered only through a reality check on the kind of prices that have to be faced today for just about anything that you want to buy. 

Without a policy, you are going to face them from a small pension or old age payout scheme which can be difficult to do.

Term Life Insurance vs Whole Life Insurance

With a senior life insurance policy, you are better off in facing the kind of financial obligations that can suddenly arise for someone in their senior years.

How Important Is Life Insurance For Seniors?

Planning ahead is the best strategy to accurate and strong financial position in life. So, if you want to not put burden on your children when you are older to take care of you financially else want to live your life without heavy payments being made from any existing sources of income, what is needed is a sound investment into senior life insurance. It can be applied for when you are 50 and above but the sooner it is applied the better.

What kind of benefits can be availed by a opting for a life insurance policy? The primary one is that it offers a payout for those expenses which are heavy to take up by a person in their senior years.  

For example, you might be having a home mortgage to pay else a business load or perhaps medical treatment expenses. All such expenses can be easily managed through payment from the policy, thus preventing a heavier burden from fall in on pension or saving scheme returns revived when you are 60 years and above. 

Senior Life Insurance – True Financial Assistance In Your Later Years

Imagine if there is a huge credit card amount to be paid and you fall seriously ill, leaving such to be paid by your loved ones. Would not this affect their everyday lives?  With a policy, such type of expenses can be paid and done away with from its payout. Furthermore, the amount received is exempt from taxation, which enables beneficiaries to get a solid income thorough which they can make it necessary and unavoidable payments.

When you reach the senior years of life, various sources of income decline, leaving you with just the amount that can be gained from a pension or interest by way of savings invested into various sources. Such being the situation, you do not want to be bothered about having to make payments every month towards a loan interest or perhaps medical expenses. Leave such payment to be done from the payout received from the insurance policy.

It’s Easy To Avail Senior Life Insurance

It can be purchased online by filling up a one page application form, which can be submitted to the site and by carefully searching for the right policy, you can avail one that offers the maximum benefits for a low premium amount, something that is just right for a person with a fixed income in their senior years. You can get one even if you have some prior health issues. Now insurance companies are offering policies without any medical check up and ask just a few questions to the applicant before policy sing up.

Term Life Insurance Vs Whole Life Insurance For Senior Citizens

Term Life Insurance

The most common type of senior life insurance policy taken is term life, because it is less expensive and covers just for some basic expenses such as mortgage payments, debt provision, replacement for income etc.  Its features include:

• It pays out a large amount when the policy holder passes away  
• This policy is valid only for a period of time, which is determined by the policy term which can be ten, twenty or thirty years.
• The cost of premium is much lower than what is seen with a whole life policy.
• It pays out in the event that the policy owner dies to those who are dependent on him or her.
• Amount of premium increases as the years goes by, so you have to prepared to face the rise in rates.
• The policy remains in place as long as you pay the premium amount. It can be later converted into a  whole life insurance policy.

Whole Life Insurance

Those who are into estate planning and want enough money after retirement to take care of their business responsibility else what to setup a trust for their children opt for permanent life insurance. Its features include:

• It offers enough financial compensation to take care of such needs and more.
• The key feature about the whole life policy is that the premium charged remains the same as long as the policy holder lives.
• There is a payout in the event that policy owner passes away and there is a cash account which enhances as its value grows.
• You can find some insurance companies offering whole life policies that put forth annual dividends which can be taken out in the form of cash, put into a deposit which earns interest or used to bring down the premium amount, get more insurance coverage or even take a loan.
• It is possible to pay the entire premium amount for the policy upfront, an option offered by some insurance companies. Such a policy is called as single premium or paid up policy.
• It is also possible to go in for an accelerated premium payment plan, in which higher premium amounts are charged at the beginning of the policy and reduced in the later years.

In an analysis of term life insurance vs whole life insurance, it is better to opt for whole life, despite its higher cost because of the manifold benefits that it provides. It is especially useful for those who want to leave a large amount to their beneficiaries. Of course, term life policies will be preferred by many due to their term period payout benefits and low cost, however they are not suitable for everyone. Check out more at mn.gov.

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