Why Term Insurance Is Best For Seniors
Saturday, September 25th, 2010
Are you 60 and older? You may have been looking for a life insurance policy but may have been thinking it will cost to much for you at your age. The reality is that just isn’t true. Their is one type of life insurance that can actually be very inexpensive and that is term life insurance. In this article I’m going to cover several reasons why term insurance for elderly people is the only way to.
First off, term is far more less costly than other types of policies like whole life and variable life insurance. In fact the average whole life policy will start out around $50 month in premiums. With a term policy I’ve seen premiums as low as $15 a month. That’s a lot cheaper than other types of life insurance.
Second, with term insurance you don’t have to pay the extra fees that go along with variable and whole life policies. For one they have a cash value, which is a built in savings account to your life insurance policy. With a variable and whole life policies you will be required to pay an extra portion of money along with your normal premiums that will go towards your cash value.
However when you are older their is no point in saving money in these types of accounts. With a term policy you don’t have to worry about cash value payments. On top of that if you want to pull money out of the account you will be charged a deferred sales fee. This is why term insurance is the most affordable life insurance for the elderly.
Finally, the last reason term insurance is best for the elderly is because you can decide how long of a term you will want. Typical terms can last as long as thirty years or as short as five years. The benefits to this is that if you only need a term policy to cover you for a short period time this would be a much better option. On top of that with shorter term policies it will cost far less per year than if you got a longer term policy or even a permanent policy like variable or whole life.
In the end term insurance can be a lot less risky than other types of insurance, however to know for sure contact your local insurance agent and he will be able to put a few quotes together for you to show you the real difference in savings.
