Life Insurance For The Elderly - Your Options Discussed
Buying life insurance for the elderly is a practice that can be
fraught with difficulty. At around age sixty-five, many employee-sponsored
life insurance plans reduce the coverage they are willing to provide
to their employees. The basic assumption in this course is that
life insurance is meant to look after your children if you die
unexpectedly; once you reach a certain age, it is believed that
you will no longer have dependents. Due to today's social structure,
where grandparents often raise their grandchildren and people having
children much later, this policy can be disastrous to some families.
Term life insurance is one option that you can choose. In term
life insurance, the policy is set for a limited span of years,
usually between one and thirty. Though typically term life insurance
is relatively inexpensive, be prepared to see higher premiums in
the case of senior citizens, and with a shorter term, as well.
In discussing term life insurance for seniors, one thing you should
be aware of is whether or not the policy will allow for renewal.
When the insured span has finished, a new policy will need to be
agreed upon. In looking up life insurance policies that will suit
your needs, keep in mind that an automatic renewal clause can make
things much easier on you. Typically, in case of seniors, an automatic
renewal clause comes with the need for a medical examination and
a brief lifestyle questionnaire.
Another thing to consider when considering life insurance for
the elderly is the premiums. The two options to consider here,
much like in purchasing a house, are fixed and adjustable. While
a fixed premium is often a much more attractive option, many insurance
policies that cover the elderly have premiums that are adjusted
every few years. It is important to keep this in mind and plan
accordingly, as the amount that the premium changes can be very
Although premiums are certainly an important thing to consider,
they are by no means the only thing. One thing that you can consider
is the purchase of a permanent insurance policy. Just like the
name suggests, permanent life insurance policies are much more
stable, and can build up personal equity. In light of this, depending
on your circumstances, it might be best to consider a permanent
policy, although you can certainly expect it to be more pricy than
a simple term life insurance policy.
If you have the means, a whole life insurance policy, with its
added benefit of investment, might be the best fit for your situation.
There are several benefits to this type of policy, not in the least
of which is that it has a wide availability for senior citizens.
The important thing to do in researching life insurance for the
elderly is to always look ahead. Think about how the choices you
make today will affect you and your loved ones in the future and