Insurance is a complicated ballgame with extremely high stakes. It becomes a vital component of your long term financial plan as you grow older, get married and launch your entrepreneurial ventures. You will be mentally at peace knowing that you have built a life of comfort for your family and are leaving them financially sound.
Life insurance will substitute the income you provided for your family as the primary bread earner. In the unfortunate event that you behind young children and a partner dependent on your economic contribution, the compensation from your life insurance policy will serve as a means to pay for someone to complete daily household tasks such as cleaning and cooking.
This will, especially, be effective if your partner had been a stay at home partner and goes out into the world to work after a break. If not that, your life insurance policy will become your family’s inheritance and help your children or spouse establish a lucrative future. Do not forget that we live life with the burden of loans: be it a car loan, credit card debt or a mortgage on your house. Relieving them of this fiscal burden will be a great service.
It must be noted that the requirements for life insurance policies change with age. For instance, affordable life insurance for elderly over 70 can be used to fund funeral costs, pay off estate costs or any other pending tax obligations. Of course, the life insurance policy’s application is at the discretion of the beneficiary.
To understand the classes of life insurance available for individuals above the age of seventy, read on. After all, to understand its technical dynamics, you will need all your powers of comprehension.
Whole Life Insurance
If it is a lengthier time coverage that you desire, then your path may lead you to procure whole insurance policy. This brand of insurance will issue final expenses (inclusive of burial and funeral costs) longer than the usual ten or twenty years offered in the short term. Yes, it does come with a higher premium but gives you a greater degree of flexibility.
Sometimes, there may still be time parameters incorporated by whole life insurance. This usually extends up to the age of one hundred or one hundred and twenty. The good news is that if you consistently pay the premiums due, your policy will remain enforced till passing.
Given the nature of this policy, you will gain financial value as a lump cash sum will gather over the passage of time. In the event of any unanticipated or unforeseen emergency, you will be able to borrow funds from your insurer against this asset (accumulated cash value).
The status of your health will have a huge bearing on your ability to obtain a whole life insurance policy. When at the age of seventy, owning a life insurance policy can become a challenging task. Insurers have the right to reject your policy application if you appear as too high level a risk in the form of a retiree who suffers from a serious or terminal illness.
Regardless, you will receive a free medical check up courtesy of the insurance service provider, specifically if you are a senior at or nearing the age of seventy. Do not worry, it consists of a series of routine medical tests such as monitoring of your blood pressure, an analysis of your urine/blood, and will undertake your weight and height numbers. The insurance underwriter can request other medical information as part of his due diligence efforts.
If you are happy with a short term whole life insurance policy, then the entire process of medical examinations can be evaded. A ceiling will be set on the death benefit (ranges up to twenty-five thousand dollars). It is because of this very reason that this policy does not appeal to potential buyers as it also comes with a more expensive fee.
Term Life Insurance
Insurance seekers over the age of seventy discover short term policies to be the most viable and pragmatic solution. The scope of time coverage is approximately ten to twenty years and appears to be sufficient for insurance requirements. If you wish to be cost-effective, term life insurance may be the best option for you as its premiums are cheaper than other insurance products. Of course, if you are fortunate enough to outlive the policy time, then there will be a financial setback.
This kind of insurance policy can allow you to customize its features with certain add-ons. For example, you can opt for a serious illness component, which could prove useful if you contract such a disease. A care protection element can be augmented to such an insurance product as well if the patient is unable to take care of himself. This will facilitate any medical care costs that may be incurred as a result.
Estimation of Premiums to be Paid
There is no such thing as a free lunch and almost everything comes with a cost. In the world of life insurance, the benefit is that there is some flexibility for payment. You can make a one time, large sum payment for the policy and be free from any future outflows of cash or you submit regular premiums.
For seniors above the age of seventy, premiums will tend to be higher as coverage is required for any possibility of medical issues. It is interesting to note that premiums for men can be higher than for women.
Buying a life insurance policy is a personal and emotional journey. Confer with your peers and family who form your circle of trust. It is a safe fall back option to protect your loved ones and it is never too late to invest in one, even if you are nearing your time of retirement.
Of course, it is always better to start your research early as you will also get better terms and conditions. The healthier you are, the stronger your life insurance policy will be.