Is Life Insurance for Elderly a Good Idea?
Life insurance started out in London in the 17th century. In 1735, the first life insurance company founded in the America’s was in Charleston, South Carolina. After nearly twenty years, the majority of the colonies decided that life insurance was a good thing and created the first life insurance corporation which sold its very first policy in 1761. Life insurance did not really become popular until 1840 when religion separated itself from governmental issues and then there were all of the lives that were lost in the historical New York and Chicago fires. In the not too distant past, many life insurance companies would not offer life insurance to elderly citizens or they offered it and made the eligibility requirements nearly impossible to meet. Now insurance companies are offering many sorts of policies ranging from whole life and term life plans. In fact, any states require life insurance companies to proved guaranteed coverage to those over the age of 63. One downfall is that most life insurance policies are not available to those over the age of 85 or fail to provide affordable premiums. It's easy to see why insurance companies are targeting seniors....Americans' life expectancy keeps rising every year, and the number of More seniors are looking to purchase life insurance policies today, accounting for 4% of all new life insurance policy sales. seniors over age 70 is expected to double over the next 30 years. Most older Americans don't need life insurance because they don't have dependents. But in a few limited cases, a term policy may make sense. Here are a few examples of when one might consider purchasing a life insurance for elderly: - You want to provide resources for your dependent grandchildren. More seniors today are primary caregivers or provide extensive child-rearing to their grandchildren -You want to provide a tax-free, financial shelter to a younger spouse.
Earlier in this article two types of plans were mentioned: • Term Life – A term life insurance policy is a policy that is purchased for a specified length of time. This is a death benefits only policy that will only pay out if you die during the term of the plan. If you live past the term then your beneficiaries will not receive the policy amount. This policy is generally for those that have a long family history of dying by a certain age or for senior citizens that are in their twilight years; otherwise it is not worth the money you pay for it because if you outlive the policy term you do not get anything back.• Whole life – A whole life insurance policy (or permanent life insurance policy) is a plan that will cover a person for life. The policy holder can borrow against the policy, cash out the policy, or the beneficiaries can receive a settlement at the time of death. Often times the settlement is greater than the premium amount that has been paid in to the policy. The biggest drawback to this type of policy is that it can be more expensive. You should also know the risks before purchasing a life insurance for elderly policy. For instance, if you outlive the term of your term life policy and renew it, your premiums will likely skyrocket. Whole life and universal life insurance, has an investment feature and is designed to provide permanent coverage but the policies are much more expensive than term life insurance. You should avoid guaranteed acceptance, life insurance, whereby you don't need to take a medical exam. The premiums are typically very high and the payouts are often low, only covering funeral costs. The best way to determine which type of life insurance for elderly policy is best for you is to ask questions and do your research. You need to know exactly what you are getting for the price you are paying. The eLifePolicy.com website offers one of the quickest and most convenient ways to purchase term life insurance coverage. Their easy 3-step process can be completed from the privacy of your home or office without speaking to an agent or requiring you take a medical exam. Just answer a few health questions. If qualified, you can print your in-force life insurance policy in minutes!Click Here
|