Many seniors wonder if it is still possible to buy term life insurance for seniors over 60. It is possible to buy insurance at that age but it can be difficult. It’s easy and simple to get a quotes from various companies that provide this plan. Senors can go with the insurance provider that offers the best approval rate based on the health condition. There are factors that affect the premium of life insurance. Three of these factors are types of medication , health condition , and the longevity of the coverage that they need. These are some considerations looking for term life insurance for seniors over 60.
Difference Between Term Life Insurance and Whole Life Insurance
Life insurance in general secures income for the family especially when an untimely death occurs. This policy helps in supplementing retirement, as well as the final expenses. Funeral costs and burial costs can put any family into debt when there is no money allotted for it. People put a bulk of their money in insurance for protection. When discussing insurance, term life insurance and whole life insurance is often mentioned.
Whole life policies have living benefits. It also has a cash account and clients do not have to pay taxes every year. They use the money from whole life insurance to supplement retirement income. They must structure this properly so there is no need for paying taxes on supplemental income.
On the other hand, term life insurance does not have this kind of benefit. It has a temporary period coverage which renews at the end of the period. It ranges from 5, 10, 15 and up to 30 years. For example, a 20 year term life insurance quote will maintain the same premium until the duration of the coverage. The cost of this term policy is the price of the insurance for the death benefit depending on the health status of the policy holder.
Difference Between Captive Agents and Brokers
Most people find confusion about the difference between a captive agent and a broker. Some people even belief that these two professions are the same and use these titles interchangeably. However, there are important differences between the captive agent and the broker. There are also different requirements for a professional to use these titles.
An agent is someone who has a license to conduct sales. It can be in the health industry or real estate market. The catch is the agent only works for one company. When looking for a term life insurance for seniors over 60, the captive agent refers the client to that one and only insurance provider that he is working for.
On the other hand, a broker can present different quotes from different insurance providers. A broker can present various quotes from different insurance companies. The client will have a wide selection of which life insurance to get. Those who are looking for term life insurance for young adults approach brokers because they wish to get a policy that works best for them based on their age and health condition.
How To Save Money When Looking for Term Life Insurance For Seniors Over 60
Those who are looking for term life insurance want to have their loved ones listed as beneficiaries. This is done so that the latter receives protection when the former dies. Getting a term life insurance for young adults allow the policy holder to save money. They can choose a coverage that will suffice for them. Because they are young, they can opt for a 20 year term life insurance quote.
Meanwhile, those in their 60s opt for a term life policy between 10 to 15 years. They can save more because the average cost of investing in a shorter term policy is lower when they opt for the 20 year term or 30 year term quote.
Those searching for term life insurance for seniors over 80 will have a difficult time. Unfortunately, once seniors hit the age 65, it is no longer possible to buy 30 or 40 year term life insurance. This is because, realistically, the average American lives up to 80 years old. The older the potential customer gets, the higher the premium gets as well. It’s a known fact that people get more health challenged with chronic conditions when they get older.
Key Questions to Determine the Kind of Insurance Needs:
– Can the 10 or 20 year term life insurance be used to that point?
– Is the policy holder still working? Does he or she plan to retire soon?
– What is the policy holder’s budget? A term life insurance is cheaper than the whole life insurance. It is also possible to buy more term coverage for the similar premium.
If the answers to all three questions is yes, then agents recommend term life insurance.
Individuals who have term life insurance for seniors over 60 have concerns on the consequences if they have a medical issue. It is necessary that they realize different insurance companies also treat medical conditions differently. There are some insurance providers that penalize the policy holders for a particular health issue and others not.
To reiterate what has been mentioned in the previous paragraph, it also recommends to go for an independent broker. Those who are looking for term life insurance for seniors over 80 must not lose hope. They should not give up from looking. If they approach a broker, then they can have a wide selection of insurance to choose from. It may have more limits than the options of those looking for term life insurance for young adults, but there are still policies out there.
Investing in a life insurance is for the long term. Those who sign up for these may have different coverage to choose from because it depends on their specific needs. There are also others who get this insurance so that they can leave an inheritance for their beneficiaries. Whatever your main objective is, get term life insurance for seniors over 60, it alleviates the financial burden when the day they pass away does come. Not only that, their loved ones are also protected and covered.