People who are above 65 years are often relieved of their financial responsibilities. They want to live a free life without worrying about the financial burdens of their family. Although this picture seems viable but in reality it is not always true. Financial worries often keep on going in the households that affect every member of the family. In such state, senior citizens, who are no more the earning partners in the family, feel the need to contribute to the expenses of their younger ones. One good solution to this situation is that the senior citizens can buy insurance policies. There are schemes under which the companies have started offering life insurance over 65 years of age.
In order to understand that “how insurance policies work for senior citizens”one needs to understand the reasons those propagate the seniors to buy life insurance policies.
• Tax advantages: People who are in business often opt for these policies to enjoy tax advantages. The policies of life insurance for seniorsoften come with tax benefits. In order to save their money for future instead of paying it in terms of tax, senior citizens buy life insurance policies.
• Meeting the death and final expenses: Senior citizens very well realize the expenses that are incurred on the death occasion in the family. That is why they often decide to buy life insurance policies for themselves so that they can support their family expenses. With the experiences of life, they can very well understand that how insurance policies work for senior citizens.They buy these policies so that their family can take care of their burial expenses without having to worry over the finances.
• Pay-off the debts: The retired people want to pay their lifetime debts before they leave the world. They may use their pension income for EMI based monthly payments of debts. In order to assure that their financial liabilities are not passed on to their children or survivors in the family, they buy life insurance policies. Their families can take care of the debts that remain after the passing away of the policy holder.
• Self esteem: One significant reason that people often enquire about senior life insuranceis their self-esteem. They hold the position of “provider” in the family throughout their life. So they plan to leave some financial gifts for their children. On their death their family can use the policy amount in the most viable way.
Now let us understand that how insurance policies work for senior citizens?
There are two types of insurance policies for seniors:
• Term life insurance: Such policies come with a time frame. For example ‘Mac’ who is 65 years old can buy a term life insurance worth $10,000 for his daughter. It means she can withdraw this much amount of money in the 10 years time period. After this tenure, the policy ceases to exist. In such policies, usually the rate of interest is lower and duration is fixed.
• Whole life insurance:This policy extends till the life time of the policy holder and ends on his or her death. The nominee may withdraw the whole sum of life insurance as a lump sum amount.
These are the two main options available for life insurance among seniors.
To better understand that life insurance for seniorswe need to explore the conditions on which the policies are given to the senior citizens.
How insurance policies work for senior citizens who have health problems?
The companies try to cover their risk in the maximum possible way by examining the health condition of the senior citizens. They check the pertaining ailments and the history of these diseases in their clients. The companies also examine chronic health problems such as diabetes, high blood pressure etc. They try to measure the intensity of these problems to assure the life expectancy of their clients.
The companies will also enquire about the addictions and other life style hazards of their clients such as smoking, drugs, overweight or obesity etc. The impact of these conditions may decide the health and well being of the senior citizens.
If any of these health issues is on serious terms then the clients can avail “graded” insurance cover. In this policy the nominee doesn’t get full death benefits if the policy holder dies in the initial 2-3 years. If your health is sound then you can avail any choicest option among the offers by the insurance companies.
Tips on getting affordable life insurance:
• Be healthy and fit: The cost and terms of your insurance will largely depend on your health. Therefore try to keep yourself fit and healthy at the time of buying life insurance cover. You can take up some normal work-out or wellness regime if you plan to buy the insurance in a period of 2-3 months.
• Earlier you buy, cheaper is the policy: This is a golden rule in buying any insurance product. If you plan to buy any insurance cover, make up your mind sooner. The younger you are more life expectancy you have! The insurance companies want to ascertain minimum risk of life expectancy. For people who have crossed the age of 60-80 years, it is advised that they take an early decision on purchasing life insurance policy.
• Compare the quotes: Internet is the best medium to seek all information pertaining to various life insurance policies available for seniors over 60-65 years. You can seek complete knowledge of elderly life insurance,what are the rates of interests and how do they vary with age, what kind of policy you want to buy and what are the benefits associated with each one of them. Different companies have different offers. You can compare the quotes online and assess them on the parameters such as cost, amount of premium to be paid, terms of pay back, rate of interest etc.
The requirements of senior citizens are different than the other people; therefore their policies too have different terms and specifications. One should carefully read all the instructions and terms & conditions before purchasing any policy.