Types of Life Insurance for the Elderly
It is a common misconception that the elderly will find it difficult to acquire an affordable and adequate life insurance policy. It may not be easy because of their age or health conditions, but with enough research it can be found. There are three general life insurances available and it is important to understand all the three before choosing one. The three types of life insurances are: Term Life insurance, Cash Value life insurance and a combination of the two.
Term Life Insurance
Term Life insurance is typically cheaper and the least complicated of the bunch. It tends to provide the best coverage for your buck, but it does begin to increase exponentially once you get passed a certain age. Term Life insurance only last for a predetermined amount of time and they don’t include a ‘savings’ option. If the policy ends before you die, you receive nothing and must consider a renewal or a change of policy. Price may be steep when one hits a certain age, but what makes this type of policy attractive to the elderly, is it requires no medical screening.
Cash Value Life Insurance
Cash Value life insurance is a bit pricey, but it does feature a few things that are quite attractive such as a savings component, which grows over time of course. This savings component can be withdrawn, invested or even borrowed against. However, be careful not to withdraw all of your money as some companies could cancel your coverage. There are a lot of other features that should be mentioned, most notably is that your loved ones might be entitled to any excess money available after all the expenses from your death are covered.
Combination Term & Cash Value Life Insurance
The third of these types of life insurance is a combination of these two and the combination can be done in several ways. It all really depends on what type of insurance you want, how much you can pay, and what you want promised to you and your loved ones.
There are a few other types that are not exactly life insurances; but they may cover exactly what you are interested in, such as the Prepaid funeral insurance. The advantage of this insurance is that it locks in the price of your funeral expenses, but the fallback is that these policies can prove to be rather tricky and if a full policy is not paid, they will not hold up their end of the bargain. As you can imagine, it is extremely important to do your research when it comes to choosing the right insurance for you.
This article was written by author, Sarah Smith.