Thursday, May 26

Tips for Buying Life Insurance for Seniors

We all have a moral obligation to ensure our loved ones do not bear an overwhelming financial burden when we are no more. If you are a senior citizen you may not want to leave your spouse or your children with the financial responsibility of paying off your debt, medical costs, legal costs and/or funeral expenses. As you shop for a policy, it is important to choose a plan that discloses the time you will be eligible for benefits. The following are some of the tips to consider when buying life insurance for seniors, including:

· Guaranteed acceptance

Many of the seniors are reluctant to shop for insurance because they assume they will be denied or end up paying high premiums as a result of their advanced age and/or pre-existing medical conditions. Therefore, a guaranteed acceptance policy comes handy. Although such a policy has smaller benefits when compared to the traditional insurance policies, the policy plays an important role in catering for the final expenses. Some of the plans are designed to provide insurance benefits to pay a caregiver or fix the home to facilitate a sale, when you are no more, as well as providing money to cater for the final expenses.

· A policy you can afford

It is important to choose a product you can afford by taking into consideration the premiums payable throughout the term or your lifetime. However, when choosing a plan, the price should not be the sole determining factor. You want as much as possible to buy a product that caters for your needs by providing enough coverage, at competitive rates. It is advisable to choose a policy that guarantees constant rates and benefits throughout your lifetime- this will help to get rid of any surprises in retirement.

· Be realistic choosing a benefit amount

Many seniors buy insurance to relieve their family of any financial worries and cater for the final expenses. Today, a funeral/burial can cost about $10,000 or more while services for cremation cost about $3,500. Therefore, it is important to shop around from leading service providers to help you choose enough coverage. Some of the policies do not pay out a death benefit during the first 2 years after the plan has been purchased, unless the policyholder dies as a result of an accident. Therefore, it is important to find a policy that returns your premiums and pays interest on the funds, at the right time.