Senior Term Life Insurance and Its Benefits
Senior term life insurance is the same thing as regular term life insurance, only it is targeted at seniors aged fifty to eighty-five. These insurance policies are a legal and binding contract between an insurance company and the buyer of the contract. The general overall goal for purchasing such a contract, it to ensure in the event of your death there is something left behind for those whom were the beneficiary of such a policy.
Term life, unlike whole life, does not accumulate a cash value. The sole purpose of a term life policy is to ensure that you are protected in the event that you, the purchaser should die. This means that the only way to collect on the insurance is if the policy holder were to die.
Term life insurance is generally preferred over whole life insurance because it does not require a huge investment, and the policy premium itself is inexpensive. Term life also offers the same benefits to you as anyone else.
Many life insurance companies are out to get a quick dollar off of who ever they can. This means even at the expense of committing fraud. Many companies have a hidden clause in their contracts. These clauses can in many events relinquish any and all legalities and obligations which may force an insurance company to pay out.
Never purchase any type of insurance or enter into any binding contract until you are sure of what you will be getting. Not everyone will be eligible for certain benefits because of their risk factors with certain health issues. Always consider both the pros and the cons of any contract.
The main thing that seems to make term life insurance so sought after is the fact that even someone on the tiniest of budgets could afford to purchase a policy. Unlike whole life that stays with you, term insurance is purchasable for terms in increments of five years. So you can decide whether to renew it or not at regular intervals.
Keep in mind that, only whole life insurance policies are worth something to the actual policy holder. Insurance policies values decrease as the economy enters into recessions. This means that cashing out an insurance policy may not be not worth it. Another thing to keep in mind is that the older you become, the more expensive an insurance policy will be for you. The reason for this is because many issuing companies associate elder's age with health problems and potential health risks. Another thing that can affect the cost of a policy, as to whether it will be a low premium or a high premium is if you are a smoker. The reason for this is because smoking causes upper respiratory illnesses.
You can cancel term life policies without losing any money at all. This gives seniors considering purchasing a policy confidence and peace of mind that they are not being locked in to a long payment period. There is an increasing number of seniors that trust term life insurance these days. Let's face it, just because you're a senior, doesn't mean you're not capable of deciding what legacy you want to leave to your beneficiaries.