Life Insurance coverage can protect loved ones once a person dies, but should one wish to take out a policy later on life, what life insurance is best for seniors? What do the different types of cover mean?
Life insurance may be taken out for a whole host of reasons - whether that’s to ensure the mortgage is paid off if one unexpectedly dies, or to support any dependant’s future financially. During one’s later years, there may be some instances where a person wishes to take out a life insurance policy. And, whether that’s due to a significant loan or to provide peace of mind for dependent grandchildren one cares for, a policyholder will no doubt want to get the most suitable type for their situation. From cost of the coverage, what life insurance is best for seniors?
It may be that life insurance premiums increase for a person who is looking for coverage later on in life, rather than in their 30s. But, that’s not to say that there won’t be options.
For instance, it may be that a person chooses a specific Over 50s life coverage.
Often, this type of insurance sees a lump sum pay out when one dies, and it may be used to help with financial commitments such as funeral costs, outstanding bills, or gifts to significant others.
Another type of live insurance is term cover, this is a type of policy which will last a pre-agreed amount of time. For level term coverage, the policyholder picks the size of the payout, and should they die within the time of term, then the insurer will pay out. This differs to decreasing term coverage, where the amount reduces over time.
The price per month for this type of insurance can increase with age, so the amount one pays may depend on when they take out the coverage.
According to MoneySuperMarket data, those aged 60 or older could pay $138.25 per month for level term life insurance for a single policy.
Between 50 and 59, the average monthly payment is $37.98, while those aged between 40 and 49 could expect to pay an average of $18.84 per month.
As the name suggests, whole life coverage will last until the person holding the policy has died.
As with any investment its always best to consult with a licensed life insurance agent to conduct a full needs assessment to ensure that all of your needs and potential risks are covered as part of your comprehensive financial plan. Get free quotes or talk to a professional at www.lifesolutionsblog.org. Try our quoting tool here.