There is variety of plans available for senior citizen in market, but they come under two basic categories. One is whole life insurance for seniors.  This is also known ‘permanent life insurance’. As it is a comprehensive form of insurance. Other is Term life insurance.

Let’s first discuss whole life insurance. Whole life insurance policy does not take into account the age factor. It provides lifetime death benefit coverage. Whole life insurance policy pays out the person as mentioned in insurance contract. If a person is alive beyond the policy expiration, the cash component is given to that person. The advantage of whole life insurance policy is that they are generally accompanied by an investment, which would be in addition to insurance coverage. Hence these plans have dual benefits & due to this dual benefit, one has to pay higher premium for whole life insurance policy, but premium amount comes down as time elapses in many policies. One more interesting feature is also there in whole life insurance policy, i.e. it also provides the tax benefits. After a certain period of time, we can also get loan & can fulfill our needs. Whole life insurance policy also provides the cash withdrawal facility.

Another basic category is term life insurance for seniors. We can say that it is an original form of Life Insurance. As word itself indicates, it covers a specific term or duration. It has three basic part-death benefit, premium & coverage duration. The term is varying between 1 and 30 years, but it may be shorter for elder persons. If a person dies during term the term of policy, he would get full benefits. But if a person survives after the term of policy, policy expires & nothing is paid. It is like motor vehicle insurance, where if we have one year policy and we meet with an accident, we will get benefit from insurance company. But if no accident takes place, nothing will be provided. While selecting the term life insurance, we should consider many aspects. As it would always be better for term life insurance policy that comes with renewal option. Renewal option policy is useful because it gives us a chance to renew if term is over & we still think that we need cover. Renewal options are of two types, one is automatic renewal & other is manual renewal.

If we compare these two categories, we would find that term life insurance is cheaper than whole life insurance. If we have to choose from both the policies, it is very easy to choose. If a person requires a policy for less numbers of year say less than 10, then he should definitely go for term life insurance. If a person requires a policy for more numbers of year say over 20 years, then he should definitely go for whole life insurance. If we see the difference between term life insurance & whole life insurance, main difference is that whole life insurance is insurance along with investment & term life insurance is type of pure insurance.


Life Insurance for Senior Citizens benefits

by extool on October 2, 2013

Many people think that life insurance for seniors is not at all necessary. However it is as important as a policy taken by a young person, because no one wants to leave their loved ones in a financial crisis. Just like any other individual a senior person also wants to take care of his family financial requirements. This is the reason that many seniors opt for senior life insurance policy at the age of 55 or more. Moreover by buying a policy at this age they are not only securing their family by financial burden but also taking care of the expenses that may occur after their death like funeral expenses or medical bills.

Our seniors can not only secure themselves but also their property, car and so on. The best part about these policies for elders includes affordable charges and easy execution.

Generally the lowest charges or premiums will be on those policies in which health check up will not be mandatory. The whole or universal term means coverage for the remaining years or lifetime, where the premium charges are low. One should be very attentive and careful while understanding these policies and plans. The agents will be well experienced and knowledgeable while trying to tell you the best plan which suits you.

The seniors who have crossed 55 or even more can be relaxed because they have so many options now a day. Previously it was not the case because most people considered that life insurance is not at all mandatory. With the competition and economic crunch people have evaluated the benefits of buying a life insurance policy, so obviously senior life insurance policy also will be important to consider.

The term life insurance for seniors plan is also good even though the premium charges would be high but it covers a certain mentioned term which will be anywhere from 15 to 30 years of the total policy. One needs to pay the premium and if the policy holder dies within the term of the policy then the beneficiary will get the total amount or else will get nothing. If the policy term mentions that after the term is over and the policy holder does not die in that case the beneficiary will get the mentioned sum assured.