Life Insurance for Elderly People

Many life insurance policies are specifically designed for seniors, and most of them offer whole life plans that pay a lump sum to the beneficiaries after the policyholder passes away. The sum can be fixed, and because of that there is a risk than inflation will reduce its value. Life insurance for elderly people can vary in the amount they will pay if the applicant dies in the first two years after the contract has been signed. Before you purchase a policy, make sure you can cover the monthly or annual life insurance quotes. Failing to compete payments could lead to the termination of the contract.

Aggressive agents spread the myth that life insurance for elderly people is difficult to obtain. Because the life expectancy has increased, insurance providers are more willing to offer protection to senior citizens. Although an individual aged 70 cannot purchase a policy with a 30 year term, a 10-15 year plan or a whole life insurance is a good option. The premiums are cheap when the you are young and increase as the years pass.

Life insurance for seniors offers many benefits, such as protecting the family from dealing with financial stress, final expenses and any additional debt. It also helps overcome the gaps of social security that often change benefits when a spouse dies. Life insurance for elderly people can also cover education costs for grandchildren or leave a financial gift for your loved ones.

There are many different types of life insurance plans available for elderly people: whole life insurance, universal life insurance with secondary guarantees, second-to-die policies and term insurance. The whole life insurance is a policy that covers the insured for the entire life. Most of the times, the premiums are payed every year. This plan offers a cash value with guaranteed interest what increases gradually. When the contract matures, the cash value equals the death benefit, and the policyholder can receive the cash value or surrender the death benefit to another person. The money set aside as cash value is made available during lifetime.

A universal life insurance is usually less expensive than a whole life plan, but does not offer cash value. The insurer provides a secondary guarantee so the contract doesn’t terminate as long are payments are made. Second-to-die policies are ideal for married couples, because a death claims is payed when the spouse passes away. Term insurance gives you control of how long the policy will be in place. In case of death, an amount is payed to the beneficiaries. This policy is cheaper than cash-value and it can be renewed at a set rate, without medical examination, after the term expires.