Questions to Ask Before Purchasing the Over 50 Insurance

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Choosing the right life insurance policy is an important decision. As you undertake your shopping, you are borne to discover many options with costs and structures that differ significantly with the age, requirements and health of the insured. Therefore, to discover the right over-50 life insurance, it is advisable to shop around. This offers you the grand opportunity to compare the different options available in the market and the opportunity to find a cover that is likely to benefit the dependents upon the demise of the policyholder. Some of the questions that you may need to ask when choosing the over 50s policy includes:

  • How does the insurance cover work?

Usually, the policy facilitates the benefits upon the demise of the policyholder. Majority of the household are seeking to meet certain financial goals using their hard earned income, including putting the children or grandchildren through college, supporting elderly parents or paying off mortgage. Therefore, right insurance policy can play an important role in facilitating the family's goals. The insurance cover is an important contract that is issued by the insurance companies. The company guarantees to pay out a set amount of money to the named beneficiaries upon the demise of the policyholder. The set amount depends on the 'claims paying ability' of the company. The benefits facilitated to the beneficiaries are usually tax-free. The insurance company pays out the benefits to the beneficiaries directly without the delay and expenses associated with the process that governs transfer of assets via the will.

  • What types of policies are available for purchase?

As you do your shopping, you stand to discover different types of policies. However, the 2 main types of policies are the whole life insurance and term life insurance policy. The whole life covers the policyholders until their demise. The whole life benefits are normally paid out to the named beneficiaries provided the premiums are up to date. The policy features an insurance policy and an investment component. Hence, the policy is recommended for transferring wealth and for the reasons of estate planning. On the other hand, the term life policy is purchased for a predetermined period of between 5 and 30 years- the applicant can also apply for a one year policy. When the term of the policy expires the premiums need not be paid. The benefits thereof are normally paid to the policyholder. However, if the insured dies before the policy expires, the benefits are normally paid to the named beneficiaries.

  • When is the most appropriate time to purchase a policy?

A cover can be bought any time regardless of your age. As long as you have dependents including a spouse, children or parents, it is advisable to purchase a policy. Click here!

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