Sunday 28 May 2017

Does Life Insurance for Seniors Worth

Over the past few years more people are indeed showing their responsibility in life by embracing life insurance. I am sure you have seen quite a number of people seeking life policies or simply searching for information and details about life insurance and picking beneficiaries among other things surrounding this industry.The question however many people ask is whether life insurance for seniors is really worth it.
Why Life Insurance for Seniorsis Necessary Basically, insurance came about to cushion people against risks and uncertainties in life. When you take a medical cover, all your routine medical checkups and treatments are taken care of. This is also the case with your family members included in the policy as dependents. This is indeed a better way to avoid digging dip into your pocket when such unfortunate times come and you are forced to seek these services.
Life insurance on the other hand was meant to cover the time when your families depend on you for financial help. In regards to this fact, life insurance has been regarded as necessary only for individuals in their early years in life like 20s, 30s or 40s. Some even start wondering if indeed life insurance for the seniors is really worth.
There are situations that demand even the seniors over 60 years to seek life insurance especially when they have young dependents. Most of the people prefer term life insurance that involves selecting a term period and then the policy pays death benefits to the dependents once you die during the term. Althoughthis is not common with senior life insurance, if you managed to contact an insurance company, you will be surprised to find that age limit is actually quite high.
Life Insurance Age Limits This is actually the worry of most seniors out there but as mentioned, the age cutoffs may prove to be higher than you ever think. This however differs from one insurance company to the other and the type of policy needed. No matter the age, I believe there is a favorable life insurance policy for you. Just imagine that some companies are able to offer “final expense” insurance to seniors as old as 85! Regardless of the fact that the benefits are lowered at such an age, it is reasonably worth it in case there are younger dependents like grandchildren whose parents are nomore.
Applying for Life Insurance for Seniors Life insurance actually tends to get more and more expensive with age. Seniors are therefore required to part with more amounts to get them covered. The application process for seniors usually involves a number of medical tests to determine the health conditions before qualifying to get a policy. For instance seniors above 50 years need to undergo electrocardiogram, blood, urine, physical and cognitive tests. All these are done in the effort to determine the right policy to cover you. Since life insurance rates differ from one company to the other, it is always advisable to get quotes from different insurance service providers before making the ultimate decision on a specific type of coverage.
Life Insurance Settlement for Seniors
Senior members of society with life insurance covers may decide to cash in on the policies any time they want especially if the dependents have grown and moved out on their own. In this case, as a senior, you may not have other dependents to support. In such a situation, you can liquefy the policy for instant cash that you can use to improve the quality of your life. This is a clear indication that senior life insurance is actually worth every single penny you invest into it.
If you are an insured senior looking forward to sell your insurance policy, you need to consider a number of factors. These factors will enable you to get through in finding the right third party to purchase your policy.
  • Current life insurance needs- at some point of your senior life, you might get interested in buying a new policy after selling the current policy. You therefore need to ensure that the proceeds you get after settlement will be able to cater for the needs fo the new policy that you think is relevant in your senior years. A 1035 exchange is ideal if indeed you are selling your current policy to buy another one. This exchange involves switching of policies which is much cheaper compared to cash surrender option that will demand for payment of taxes.
  • Less costly alternatives- there are actually many alternatives through which you can have instant cash your insurance including surrendering, settlement and accelerated death benefits among others. This opens up for more options for you to choose from.
  • Determination of fair prices- there are many life insurance brokers and companies out there today and each will obviously offer different prices for your policy. Simply shop around or request interested companies to bid for the policy and the highest bidder would be ideal to sell the policy to. 
  • Impact on your finances- there may be both positive and negative consequences of selling your insurance policy. You need to weight these keenly before making the decision. For instance, if you are a senior that has for a long time invested in your life insurance to a point you are federal assistance in terms of medical aid
, selling your policy may affect your participation in the program negatively. Talk to your financial advisor to fully understand the implications of life insurance settlement.

  • Impact on your dependents- your current need for finances from your policy should be considered in relation with the future financial needs of the survivors and dependents. If the survivors are mature individual who can take care of themselves, then you do not have anything to worry about.

  • In order to have the best settlement for your life insurance, always seek the help of specialized and licensed brokers or service providers who will offer the best price for your policy.
    Life insurance for seniors is simply worth every single penny and effort; for the younger dependents or for your personal reasons such as guaranteed better quality of life once you decide to sell the policy. In case you have been contemplating
    of seeking insurance for seniors, just know that this will be a prudent way to provide the remaining family members with some savings after you are gone.

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