Every senior will have different needs when it comes to life insurance depending on their individual financial and personal circumstances. If you do already have life insurance, it’s a good idea to make sure it’s still the right policy for your needs. Keep reading to understand the different types of life insurance so you can find the life insurance policy that works for you.
Life Insurance – Who Needs It?
Everyone will have expenses at the end of their life. Some people may have debts that they will need to cover, such as medical bills, a mortgage, or credit card bills. In addition, nearly everyone will have funeral costs to cover. Funerals typically cost thousands of dollars.
At the end of your life, who will pay for these expenses? If you don’t want to leave your family with the burden of your final expenses, it’s a good idea to purchase a life insurance policy. The two main types of life insurance are whole life insurance and term life insurance.
Term Life Insurance
Term life insurance is typically a more affordable type of life insurance. Term insurance is insurance that has a set expiration date at which point you will no longer have coverage under that particular policy. Depending on your age, you can purchase a policy that will last between 10 and 25 years. Term life insurance policies can be a good fit if you will still be working for a number of years and have dependents.
With term insurance, the premiums are set for the life of the policy. However, the older you are when you buy the policy, the higher the premium you will pay. One drawback to term life insurance is that the policy will come to an end whether you’ve used your benefits or not. You must also choose the length of the policy, so it is a bit of a guessing game. If you’re over 60 years old, term life insurance policies usually last between 10 and 20 years. In general, the older you are when you first purchase the policy, the shorter amount of time the term policy will last.
While term policies are generally cheaper than whole life insurance policies, they do sometimes require medical exams to qualify. In addition, not everyone will be able to qualify for a term policy.
Whole Life Insurance
Whole life insurance is life insurance that you keep for your entire life (as long as you continue to pay your premium). This type of policy may accumulate a cash-value and will pay a tax-free cash benefit upon your passing. Depending on the size of your policy, whole life insurance policies can be good to cover funeral expenses, other final expenses, or if you wish to leave an inheritance.
One drawback is that if you are not in good health or over a certain senior age, a whole life insurance policy may be more expensive than a term policy. The benefit is that a whole life insurance policy will generally provide the coverage you need.
With most whole life insurance policies, you don’t usually have to worry about a medical exam in order to qualify. However, each individual situation is unique and some individuals may be required to get a medical exam or at the very least answer a medical questionnaire.
Many people 60 years and older appreciate the financial security and peace of mind a whole life insurance policy can provide. With a whole life insurance policy, unlike a term policy, your coverage will not be canceled as long as you continue to pay your premium.
Talk to Americo Senior Life About Your Options
Americo Senior Life offers affordable whole life insurance that can help provide you and your family with financial peace of mind. We offer a range of coverage options to fit your unique needs and budget.
Ready to talk about the whole life insurance policy that is right for you? Our professional agents can help you determine which policy is right for you. Contact Americo Senior Life today at 855-969-3952 or apply online in minutes.