Products Seniors Absolutely Must Have
As one grows older the costs of life insurance policies become more expensive. In your sixties the life insurance premiums are more expensive than those given in their early thirties. Old individuals are believed to be of greater risk because the chances of the company’s payout are very high. Even if this is true, there is a silver lining. There are plenty of life insurance policies that work catering to senior citizens.
Here are some of the life insurance products that are great for seniors.
Term Life Insurance
This policy has the great advantage of giving low prices mostly to those who show some signs of good health. It is offered in a specific period of time. Mostly ranging from five years to thirty years and they come with constant premium payments.
As you get older the size of a term shrinks. Most companies refrain from awarding seniors with the 30-year package after they have attained the age of 50 to 55. The 20-year package ends at 65 while those who have 70 years and above can get a 10-year package.
Term life insurance continues to be broken down into smaller divisions.
Level Term Life Insurance
Both the benefit and premium remain the same until the end of the term. After the end of the term, one has the freedom to renew the policy.
Convertible Term Life Insurance
This is an interesting one. After the expiry of your term policy, you have the option to start a new coverage that is permanent in nature. This option is mostly presented to those at age 70.
Annual Renewable Term Insurance
It is self-explanatory the policy is renewed each and every year. It is deemed beneficial to those who desire coverage over a short period. As one keeps on renewing the need for a thorough medical exam is forfeited.
It helps in covering expenses as debts once the breadwinner is gone.
It has premiums that are quite cheap especially for policyholders that are below the age 75.
The is an option of it being changed to a permanent life policy when the need shows itself.
There is no cash value as a result of payment of premium. The only reward is a death benefit
If you live longer than the length of the insurance policy then you will have to renew and get started with another policy altogether. Annual renewals beyond the age of 90 are very expensive.
Guaranteed Universal Life
It also caters to the old extensively when compared to the term life insurance policy. In addition to that, it has a premium that remains constant throughout the duration of the policy.
There is even great news to the seniors. The premiums can be paid continuously even past the age of 100. Just as the name itself suggests you are guaranteed to get a death benefit no matter the length of your life.
It cannot get any better than this, as there is an option of adding riders so as to be able to finance for your care and living benefits in old age. It will cater for things like chronic ailments. The downside is that the raider is deducted from the total amount that was to be the death benefit.
After understanding how guaranteed life insurance policies work to cater to the old, here are some of its pros and cons.
The premiums remain constant
There is a death benefit that is guaranteed
Chance of outliving your policy is very narrow because the insurance policy has a high age limit
Riders can be added to the policy and this can be used to cater to the living policyholder.
There are penalties if there is lateness in payment
There is no accumulation of cash value the only payout awarded is the death benefit.
From all the information available to you the best and most sufficient insurance policy for the old has to be the Guaranteed Universal Life Insurance policy. Its premiums do not change, they remain constant, and the beneficiaries are set to enjoy the payout. This has been made possible by the fact that the policy extends up to 120 years.