Characteristics of Term Life Insurance for Seniors
Life insurance needs vary based on a person’s age and responsibilities. However, buying insurance is an important financial decision. Insurance is often purchased to replace income that would otherwise be lost on the death of the breadwinner. You want to make sure your loved ones don’t incur significant debt when you die. The right policy will allow dependents to keep assets while paying taxes or outstanding bills. The policies are different. Some cover a specific number of years, while others cover the life of the policyholder. So if you’re a senior who wants to get the most out of a policy, you can buy senior term life insurance. Features of this type of policy include:
· Lower Premium Attractions
Compared to whole or permanent life insurance, term insurance attracts lower premiums, particularly in the early years. Therefore, if you are on a budget, you can always consider buying the term policy. This type of policy offers great insurance protection for the dollar premium. However, the term policy does not accumulate any cash value that can be used in the future. Therefore, you may consider combining the whole life policy with the term policy at the point of your greatest need to replace lost income.
· Covers a specific time period
The term policy covers the policyholder for a period that often ranges from one to thirty years. This gives him the opportunity to determine how long he wants to commit to the contract. So, if you have a 30-year need, such as a mortgage payable over a 30-year period, you may want to consider purchasing a 30-year term policy. This ensures that the mortgage is paid when the policy matures. It makes sure that your loved ones are not homeless when you are gone.
· Pay death benefits
The term policy covers a stipulated time. Once the policy is terminated, the policyholder can receive its benefits. However, if the insured dies before the term expires; designated beneficiaries may receive death benefits.
· renewable
The term policy can be renewed for one or more terms. This is possible even if the policyholder’s health changes. However, some companies often require higher premiums each time the policyholder renews their policy. Therefore, it is important to find out what the premiums will be when the policy is renewed.