Features of the Term Life Insurance for Seniors

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The needs for life insurance vary with the age and responsibilities of an individual. However, purchasing insurance is an important financial decision. Insurance is often purchased to replace the income that would otherwise be lost with the death of the breadwinner. You want to ensure your loved ones do not incur significant debts when you die. The right policy will allow the dependents to keep the assets while paying outstanding taxes or bills. Policies are different. Some cover a specific number of years while others cover the lifetime of the policyholder. Therefore, if you are a senior citizen who wants to derive maximum benefits from a policy, you can purchase the term life insurance for seniors. The features of this type of policy include:

  • Attracts lower premiums

When compared with the whole life or permanent insurance, the term insurance attracts lower premiums, particularly in the early years. Therefore, if you have a limited budget you can always consider purchasing the term policy. This type of policy offers a large insurance protection for the premium dollar. However, the term policy does not build up any cash values that can be used in the future. Therefore, you may consider combining the whole life policy with the term policy at the point of your greatest need to replace lost income.

  • Covers a specific time period

The term policy covers the policyholder over a term often ranging from one to thirty years. This gives you an opportunity to determine how long you want to be committed to the contract. Therefore, if you have a need that lasts for 30 years, such as a mortgage that is payable over a period of 30 years, you can consider purchasing a 30 year term policy. This ensures the mortgage is paid off when the policy matures. It makes sure your loved ones are not left homeless when you are no more.

  • Pays off death benefits

The term policy covers a stipulated time. Once the policy ends, the policyholder can receive the benefits thereof. However, if the policyholder dies before the term matures; the named beneficiaries can receive the death benefits.

  • Renewable

The term policy can be renewed for one or several terms. This is possible even if the health of the policyholder changes. However, some companies often demand for higher premiums every time the policyholder renews their policy. Therefore, it is important to find out how much the premiums will be when the policy is renewed.

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