Advertisements for life insurance policies designed specifically for seniors run on television frequently. These ads tout benefits like low premiums and guaranteed coverage for older adults and may leave you wondering whether you should buy a policy. To help you make an informed decision, LifeStream at North Phoenix senior living community is pleased to present this guide.
Before getting into the benefits and drawbacks of buying life insurance, it’s important to understand what life insurance policies geared toward seniors are. These policies are usually only available for people over a certain age, such as 55 or 65, and have guaranteed acceptance, meaning you won’t be turned down if you have a chronic health condition like COPD or diabetes.
The type of life insurance advertised for seniors is usually a term policy. With this type of insurance, you get coverage for a set number of years known as the term. At the end of the term, the policy expires.
When you pass away, term life insurance pays a sum called a death benefit to a person or entity you specify. In exchange for this, you pay a fee called a premium. With most life insurance, you pay the premium on a monthly basis to keep the policy active.
There are some benefits to buying life insurance as an older adult.
For all its benefits, life insurance does have a few drawbacks for seniors that you need to be aware of before you buy.
As you consider how to provide for your loved ones, keep in mind that alternatives to life insurance are available.
To determine whether life insurance is right for you, consider your goals and your financial situation carefully. If you don’t have any debts, your family is financially independent and you have money saved in a bank account, investment account or retirement account, life insurance may not be necessary.
If you do decide to purchase a policy, obtain quotes from multiple insurance companies. Consider the death benefit size, the monthly premium amount and any fees and restrictions of policies, and be sure to read over all the information carefully before you buy.
*Please don't remove this section it is working with 3 TalkFurther buttons on live url