Top 3 Factors to Consider When Choosing Life Insurance for Seniors Over 65

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A life insurance policy is important. Although it is not as legal a requirement as the auto insurance, it provides a variety of benefits to the family. Many of the people fail to talk about the policy because they do not want to think about death. Nevertheless, it is required morally because it is the responsibility of the breadwinner to protect his/her family from getting into financial problems when they lose their ability to earn an employment income. The factors to consider when choosing life insurance for seniors over 65 include:

  • Type of insurance policy

As you do your shopping, you will discover different types of covers. Some are short-term while others buildup cash value over the long-term. Many of the providers offer 2 basic policies: whole life and term life policy. The former is normally a permanent insurance that offers lifetime coverage. The insurance premiums are normally fixed, building cash values over the long term. The policy functions like a savings account that can be tax-deferred. On the other hand, the term life caters for a limited period such as 5, 10, 15, 20, 25 or 30 years. Annual policies are also available. The premiums are submitted over the stipulated period. Once the term ends, the policyholder can consider terminating the policy or may consider renewing the policy.

  • Your personal needs

The best insurance is not based on how cheap the policy is, but rather your needs and that of the family. For instance, if you are a senior who has attained the age of over 65 years you may need to apply for a cover that will cater for the short-term. Therefore, a term life insurance policy may be a good consideration. However, if you want to build cash value and cover the death benefits, you can consider the whole life insurance policy. Furthermore, if you are interested in a plan that can help you transfer your wealth; you may consider applying for the whole life insurance policy.

  • Cost of the cover

Once you have determined your needs you will need to ascertain the cost. Insurance companies normally consider the risks before determining the premiums payable. Therefore, if you are in good health, living a low risk lifestyle you are likely to attract low premiums. The class rate will depend on the following factors; the family medical history, cholesterol risks, tobacco use- among other factors. You will need to access several quotes based on the type of life insurance you choose and your personal needs.

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