3 Major Questions to Ask When Selecting Life Insurance for Elderly Parents

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With the current economic uncertainties, a cover policy is necessary because it helps to support a family. Life insurance for elderly parents is very vital because the advantages can be used to cater for funeral fees, thus, removing the financial stress likely to be borne by the family during a hard time- as a result of losing a loved one.

The benefits can also be used to cater for additional financial support such as the grand children college tuition. Thus, you should select the right insurance plan in light of the variety of options available in the market. The questions you should ask when selecting an elderly parents insurance plan comprise:

How does the policy work?

The policy provides payment upon the death of the policy holder. Most of the families have financial goals that they are aiming to meet using their hard-earned income including paying off mortgage, supporting older parents or putting children or grand children through college.

The appropriate insurance policy can help facilitate the family's goals. The policy is a deal issued by an insurance company where the company guarantees to pay a set amount of cash to the beneficiaries upon the death of the policy holder.

The guarantee relies on the claims-paying ability of the insurance company. The extensive benefits derived from the policy are normally tax free. This company pays the benefits directly to the beneficiaries with no expenses and delays associated with other processes that govern the transfer of assets through the will.

What types of policies are available?

Insurance policies typically fall into 2 categories: the term life insurance and the whole life insurance policy. The term life insurance policy covers a predetermined period normally ranging from 5 to 30 years. You can however apply for a yearly life policy that covers twelve months.

Once the term expires the coverage ceases and the premiums are no longer paid. The whole life policy covers the policy holder until they pass away, regardless of their age. The benefits will be transferred to the beneficiaries as long as the premiums were up to date.

The whole life policy includes an insurance policy with an investment component. Consequently, it is normally used for the transfer of wealth and the purpose of estate planning.

When is the right time for purchasing life insurance?

The policy can be purchased at any time. You need to consider purchasing a policy as long as you have dependants. Also you can consider applying for a cover for elderly parents- to help cushion the family financially in case of their death.

For further information on this matter, click here!

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