Permanent Life insurance is a contract between the policyholder and the insurer which promises to provide death benefits after the demise of the policyholder in exchange for a premium. It is one of the pillars of a personal finance portfolio that every household must adopt. Hence it is always preferred for an individual to buy Life insurance as early as possible preferably in its youth to lessen the burden of a higher premium. This does not mean someone shouldn’t buy an insurance policy at a later stage especially after active work-life i.e. after 60 yrs of age. It’s vital to have a policy throughout a lifetime to minimize the burden of medical debts and funeral expenses and to leave a legacy for loved ones. We hereby discuss the different options available for Life Insurance premium for 75 and above.
Term Life Insurance.
In this policy, the insurer provides cover for death benefits for a specific period hence the name Term. The tenure of the policy is usually active for 5, 10, 15 years, and so on. The benefits are available if death occurs to the policyholder within the term period. No benefit is provided after the policy term ends. For senior citizens of 75 yrs and above a maximum of 20 yrs term policy is available. If an individual at that age does not see itself beyond 20 years then this policy is best suitable as the premium are far less compared to other policies. Also, the premium amount remains fixed for the whole term and hence sudden financial upset is reduced substantially. Also, the policy comes with some rider before initiating the policy like medical history, lifestyle, age, etc.
Whole Life Insurance
In this policy as the name suggests the insurance cover is available for the rest of your life. However, the policyholder needs to pay the premium for the rest of the life to keep the policy active. This condition makes the policy running cost to be very high and is advisable for those individuals who can afford to keep up the cost. This policy is also beneficial for those who have huge debts and the post-death benefits of this policy will help them reduce the burden after they are gone. It also helps in substituting surviving Spouse’s income needs. One key feature of this policy is that it combines insurance coverage with savings.
Guaranteed Universal Life Insurance
Guaranteed Universal Life (GUL) Insurance is a policy that combines the benefits of both Terms Insurance and Whole Life Insurance. The policyholder gets a life insurance policy at rates comparable with Terms insurance policies. This policy guarantees Death benefits for the policyholder as long as the premium is paid. The timing of death does not matter. This is one of the most flexible policies available out there. The death benefits can be increased or decreased in between the policy terms with a proportionate change in premium. The amount and frequency of the premium amount can also be changed as per policyholders convenience i.e. a lump sum amount can also be paid.
No medical exam policy
Here the policyholder having a critical illness or pre-existing diseases can opt for this insurance policy where the insurer provides the policy within few days without going through the hassles of a medical checkup at the cost of a higher premium. No questions are asked regarding the health and family records. It saves time and effort and is a guaranteed issue.
Burial Insurance Policy
This policy provides financial assistance to senior citizens for burial expenses to reduce the burden from loved ones. Some Insurers allow the policyholder to plan their last rites as per their wishes like specifying flowers to the types of casket preferred.
The above are a few lists of Life insurance policies suitable for senior citizens to choose from. The suitability of the policy depends on the person’s financial ability and future corpus that they intend to save for their near and dear ones.