Senior Life Insurance Types To Consider
As you start a family, raise children and grow older, you will start to wonder about the legacy you leave behind. And grim as it may sound, you’ll want to ensure that your family is well provided for in the case of your accidental or untimely death. You can do so with a senior life insurance policy.
There are generally three types of senior life insurance policies that are available in all states. They include term life insurance, whole life insurance and single-pay insurance.
Term insurance as the name implies has a pre-defined life-term length, and has no accumulating cash value. What’s important to remember is that when the term reaches maturity at the cut-off age, say when you turn 80, policy benefits can be terminated instantly. This policy is beneficial to those who have limited incomes as the initial payments can be low.
Whole life insurance is permanent and accumulates cash, so it’s profitable. Usually people aged between 50 and 80 years are eligible (50-75 in NY, NJ and PA), and the policy is valid your whole life. The insurance premium is fixed, so it cannot increase for any reason. Money can be borrowed against the policy, if necessary. Beneficiaries can potentially receive a significantly high sum of tax-free cash.
With single-pay insurance, you pay a lump-sum of money up front for the policy. This type of policy is essentially for people who have a lot of cash on hand and are looking to invest it. It is possible for the policy value to double or even triple in only 24 hours, depending on the amount of the paid premium. And the awarded benefit to the beneficiary can potentially be tax-free.
Whatever kind of senior life insurance you choose, make sure you shop around for the best quote. Use an online insurance quote service, like MWG Insurance Mall, to find the right policy that will best benefit you and, more importantly, your beneficiaries.
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