The Steps to Follow In Choosing the Over 50s Insurance

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With the prevailing economic uncertainties, it is important to apply for a life cover that will go a long way in supporting your family. The over 50s life insurance is important because the benefits thereof can be used to cater for funeral costs. This helps to get rid of the financial stress at a time when the family is grieving for the loss of a loved one. The benefits generated from the policy can be used for other purposes including paying out the mortgage, supporting the grandchildren college fees. It is therefore advisable to select the right cover considering that there are many options to choose from. The steps to follow when choosing the over 50s policy includes:

1. Determine the type of cover

Although the market is saturated with different types of covers, there are essentially 2 types of policies: the term life and whole life policy. These types of policies offer unique benefits. The term life cover is usually an affordable option that offers the policyholders a cover that ranges between 5 and 30 years. You can also apply for an annual life insurance cover. The term policy offers coverage as a fixed rate over the stipulated period. On the other hand, the whole life cover is provided to plan for retirement in advance and to prepare for final expenses. Though it is more expensive, the whole life cover seeks to accumulate financial benefits over time. The benefits are paid out to the beneficiaries upon the death of the policyholder.

2. Determine your personal goals

Once you have you have considered the types of covers available in the market, you need to determine your goals. The purpose for purchasing a policy is to channel the death benefits to the beneficiaries. Nevertheless, the needs of the beneficiaries change over time. Therefore, couples without children usually have minimal needs while couples with children have greater needs. Once the couples have achieved and the children have left, the benefits from the cover can be channeled to cater for the grandchildren's college fee, medical expenses or funeral costs. The cash value accruing from the policy can be used to pay off the mortgage.

3. Determine the cost of the coverage

Insurance premiums are normally paid on monthly, quarterly, semi-annually or annually. Once you have made the decision to purchase a policy, it is important to find out the premiums payable. The policy is normally purchased to address future goals; however, the policy should be affordable - in the present. Considering the whole life cover is expensive, many of the insurance shoppers choose the term life policy, which attracts lower premiums.

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