A large portion of senior Americans is getting more attracted to life insurances. Whether the senior is looking for life insurance to pay off their remaining mortgage, funeral, or to supplement their grandchild’s education, there are plenty of options under two main categories. The Term Life Insurance, just as it sounds, it is temporary. The policies range from 10 to 30 years. It is more affordable compared to Whole Life Insurance.
Term Life Insurance
It is the best life insurance type if you want your premiums to be consistent throughout the term of the policy. While this is affordable, if the senior dies during the policy term, beneficiaries will still receive the death benefit of the value of the life insurance policy. If not, the beneficiaries don’t receive a death benefit.
However, at the end of the term, the term life insurance can be converted to whole life insurance but the premiums can be as high as 10 times the initial amount. The sole reason why the 10-year term life insurance is more popular is that the senior doesn’t get much older compared to a 20 or 30-year term life insurance. Therefore, when converting to whole life insurance, the premiums become lower.
Whole Life Insurance
Hence the name, it lasts for the senior’s whole life. The most advantageous part of the whole life insurance is the policy pays out a death benefit when the senior dies while the premiums stay the same each year. On top of this, the cash value where you can borrow against to help for anything you want. But doing so will reduce it from death benefit by the amount of the borrowed money.
Which one is better?
If the senior is healthy and wellness, any sudden medical condition after the term ends will basically take away all the use of Term Life Insurance and the beneficiaries won’t get the death benefit. When it comes to seniors who are over 80 years old, we strongly recommend getting Whole Life Insurance but if the senior already has Term Life Insurance, it can be converted to Whole Life.
For this, you need to seek assistance from your insurance company and provide them with the documents. Although the premiums are likely to jump up, the levels are going to stay the same for each year. So age really does play a huge role in this. For more information on picking the best possible life insurance for seniors, visit our homepage or visit the selection of articles below.