Life Insurance for Seniors, Best Product Options

The older you get, the more expensive and difficult it becomes to get a life insurance coverage with preferred terms. However, that does not mean that it is impossible to get coverage. While people above the age of 60 have fewer or limited life insurance options than younger folks, there are plenty of options sure to fit any needs.

There are three basic options when it comes to life insurance:

• Term Life Insurance

• Guaranteed Universal Life Insurance

• Whole Life Insurance

Term Life Insurance

Term Life Insurance is the most affordable and most effective life insurance for seniors. It stands out because it offers the most coverage at the lowest price. It is also the best when it comes to seniors buzzing with good health.

In contrast to other life insurance coverage, it provides coverage for a specific number of years, which usually ranges from 10 to 30 years. Depending on how old one is, an insurance company can insert a limitation on the number of years on the term plan.

When comparing life insurance quotes, make sure to verify which type of coverage the quote is for. 

Under Term Life Insurance, there are three basic options:

Level Term Life Insurance

This type of term life specifies the amount of premium one would have to pay as well as the level of the death benefit. For instance, a 15-year term policy with a $150,000 death benefit would most of the time come with identical premiums for each year over the term life. Beneficiaries would also receive $150,000 in case of the death of the insured.

Should the policy expire, an insurance company is not mandated to issue any cash value. However, there is an option to renew and extend coverage.

Convertible Term Life Insurance

Once a convertible Term life Insurance expires, the insured can convert the policy into a permanent insurance plan coverage. Conversion 

can be done before the policy expires or before age 70.

Annual Renewable Term Insurance

This a term life insurance that is renewable every year and beneficial to people who need coverage for a short period, such as five years. It tends to be more expensive.

Guaranteed Universal Life Insurance

Guaranteed Universal Life insurance is a type of life insurance that comes with some guarantees in addition to offering permanent coverage without time limits. Unlike Term Life Insurance Policy, GUL premiums remain constant throughout the policy period.

 It is also a much reliable and dependable form of life insurance as it is not dependent or affected by developments in the financial markets. The fact that it is not prone to fluctuations allows policyholders to enjoy constant and predetermined premiums.

Guaranteed Universal Life Insurance also stands out in part because there is always a death benefit regardless of when the insured dies. In this case, one can select the maturity of the policy. Most seniors select the highest age possible to avoid the risk of outliving a policy. Outliving a policy many times forces people to repurchase the policy but at a higher premium. 

Guaranteed Universal life insurance is ideal coverage for seniors who wish to leave a legacy for their beneficiaries in the form of the final payout. The final payout can also go a long way in catering for medical and burial expenses in the end.

Whole Life Insurance

Whole Life Insurance provides coverage throughout the life of the insured. While premiums remain the same each year, the coverage tends to be more expensive compared to Term Life and Guaranteed Life insurance coverage.

Whole Life stands out in part because there is always a payout regardless of when the insured dies. In addition, it comes with a provision that allows borrowing against the policy to cater for expenses such as medical bills of the insured. Borrowing against the value of the policy reduces the death benefit.

There are three types of Whole Life Insurance:

Traditional Whole Life insurance

This type of Whole Life Insurance comes with a guaranteed minimum rate of return on the cash value portion of the policy.

Interest Sensitive Whole Life Insurance

Unlike Traditional Whole Life, it does not come with a guaranteed minimum rate. Instead, it comes with a variable rate on the cash value portion. It stands out in part because the insured can increase the death benefit without raising premiums.

Single-Premium Whole Life Insurance

Single Whole life Insurance is ideal insurance coverage for people with large sums of money that would wish to purchase a policy up front. The policy accrues cash value and comes with a tax shelter on returns. 

Get What You Need and Nothing More 

The reality of the situation is that the right coverage for you will depend on your specific situation. Work with a pro and get their help in shopping around for the best product, with the best company, at the best rate. An independent agency will be able to do the shopping for you without any extra cost to you. Get coverafed and protect your family!