Everyone hopes of living a happy and comfortable life, but ups and downs are part of life. However, planning out your future goals and available options can make it easy for you. We live in fast times where nearly everyone has a busy lifestyle, particularly if one is married, has kids, and manages a job.
Life insurance is one vital aspect that helps to cover the financial burden of a family on the passing of an insured person. In simpler terms, life insurance is a legal agreement or contract in which an insurance company agrees to pay a particular sum of money or cash benefits to the family of the beneficiary when an event that the policy covers happens.
The Significance of Life Insurance
The purpose of life insurance is to provide for the family or dependents if you pass away or cannot work any longer. The goal is to financially secure the family and ensure that they are provided for when they need it the most.
The purchase of life insurance involves making payments called ‘Premiums’ depending on the money you may require and given the perceived risk of the insurance provider. The risk involves various factors such as your
- Lifestyle habits (Hobbies, smoking)
- Assets and Debt (Mortgage, credit card debt, and car loans)
- Marital status and family size
The higher the perceived risk, the more expensive the premium amount you need to pay.
Life insurance has different meanings in different stages of life. For example, the younger adult requires coverage for the financial support of his family if something happens to him unexpectedly. On the contrary, older adults need an insurance plan for various reasons. The best life insurance plans for seniors are one that includes
- Potential payments to the treatment of chronic illnesses
- Paying outstanding debt
- Covering funeral expenses
It is quite true that life insurance gets expensive as you age with added risk, but there are few valuable term life insurance options. However, most of the effects of those policies for seniors come under permanent life insurance. One can keep the plan active by making timely payments. Some of the factors that you need to consider for best insurance coverage for seniors are
- Range of features
- Price of the particular plan
- Value-added benefits
- Customer ratings
The Two Common Types of Insurance Policies for Seniors
The life insurance plans for seniors vary from one insurance provider to another. However, most involve a medical exam and answering basic health-related questions. On average, the monthly payment can cost anywhere from $20 to $1000. The payments may help to clear debt, mortgage, and even cover funeral costs. The two types of life insurance available to the seniors are
- Term Insurance
As the name suggests, term insurance is only feasible for a particular term. You need to apply and qualify for a new policy whenever the term expires. For example, you may apply and get a 10-year insurance policy, but the policy ends once 10 years are complete and you no longer have insurance.
It is difficult for older adults above 50 years to qualify for ‘term insurance’ as their health condition is unstable and prone to change. Even for renewal, you need to pay expensive premiums worth thousands of dollars.
- Whole life insurance
For seniors above 50 years of age, whole life insurance, also known as ‘permanent insurance,’ is the best option. Some of its advantages are
- The premiums and coverage remains the same throughout the life of the policy, given that premiums are timely paid
- Most of the plans accumulate cash value
- No policy terms to fulfill such as renewals
- Smaller coverage amounts and premiums to make which is far more affordable than other insurance policies
- No need to requalify
- Most do not even require a medical exam to prove qualification, and answering health questions would suffice
The whole life insurance is a permanent option and guarantees support for the loved ones if the insurer passes away. Most senior individuals are likely to pick whole life insurance because they do not want to take chances and ensure that the funeral expense is paid for. A person has to know his options and research the best senior insurance provider that meets the requirements.
The Need and Purpose of Senior Care Plan
For ages, life insurance has been pivotal in caring for loved ones after the person passes away. However, choosing the right policy might be challenging. Some of the key questions you may have been
What sort of senior life insurance will be suitable?
How much of the coverage or financial support will be adequate?
What is the best senior life insurance at a certain age?
Can I qualify for the policy I want?
A purposeful senior care plan life insurance provides comfort knowing that your loved ones will have money to pay for the final expenses that may include funeral and burial. On average, a funeral can cost $5000 to nearly $10,000 (with burial). Having an insurance policy ensures that the financial burden does not fall on the family of the deceased.
Considering a life insurance plan is essential if you have
- A spouse, and kids who are dependent on you
- Large bills to pay in the form of mortgage, or car payment
- If anyone in your life depends on you financially
A life insurance plan can help to prevent unforeseen costs once you pass away. Even if your dependents are financially able, then also having coverage is quite valuable. Your family has to cover burial expenses, any outstanding medical bills, and estate taxes.
Surely, no one wants to leave the family behind under financial burden, given they will be grieving and trying to compose themselves. Few insurance providers can provide almost $20,000 in a senior care plan even if you have a chronic health condition. Some insurance providers may have strict qualification rules, but many offer the plan without a medical exam. The notable features of a senior plan are
- Lifetime coverage
- No need for a medical exam
- Eligibility on answers related to your health
- Option to build cash value
- The premium rate will not increase
Life insurance is a safety blanket that helps to prepare for the unexpected. Your needs will change as time moves on, so one must review the policy and make appropriate changes. You need to reevaluate and pick an insurance plan that can effectively meet and cover the expenses.
Fulmer Insurance Group is the best option for you and your family. We make the process easier and ensure all your requirements and requests are fulfilled efficiently. Our experts can understand your needs, present a range of plans, compare them, and help you pick the best policy. If you are looking for a life insurance plan for yourself or a senior, call us or go to our website and learn about our life insurance products.