If you are a senior citizen and do not have a life policy as of yet, you still have time. And if you have loved ones who might be financially affected if something were to happen to you, then a life insurance is the best way to ensure that their needs will be met even if you are not around. Below, we take a look at four things about life insurance that every senior needs to know.
Type Of Policy
You have two options to choose from – whole life policy and term length policy. The whole life policy accrues cash value. In contrast, a term life policy provides insurance cover for a short period of time and do not accrue any cash value. And considering that you are a senior, it is better that you decide for a term life option since this is the cheapest option among the two. Plus, also consider the term of the insurance policy. The shorter the term, the lower will be its cost.
A good way to further cut down the cost of a policy is to be a part of a group insurance policy. So, if you are part of a group, like the local senior residents unit or something like that, make sure that you check with them if they do have a group insurance. If so, it may be a good idea to be a part of it. Just remember to read the group policy details thoroughly so as to ensure that the policy does meet your requirements.
Get the policy as early as possible. Since you are already a senior, the more you wait, the more you will have to pay for the insurance. The price difference of a policy for a man aged 70 years and another aged 72 years will be much bigger than the difference between those aged 40 and 42. As such, don’t wait for the ‘next year’ to be insured. Instead, get the policy now itself. For cost effective policies, you can check out the life insurance for seniors from LifeNet Insurance Solutions.
One of the easiest ways to reduce insurance costs is to ensure that you remain a healthy person, with lower chances of diseases or disorders. Insurance companies will only charge higher rates to seniors who they think have health issues and medical risks associated with them. Hence, as long as you can show them that you are sufficiently fit for your age, you can actually get insurance at lower costs than other seniors of the same age group.
In addition to the above, make sure that you read the terms and conditions of the policy very carefully before signing up on any of them. The choices in life insurance policies are endless, and might seem complex to choose from at times. However, with a little consideration of the facts that are covered under a particular policy, you can ease out the selection process and settle for the best possible options.