Life insurance is a complex topic that requires lots of research and information. For people over the age of 65, it is something that comes up more often than it did in their past. When reaching the age of retirement, it sometimes becomes apparent that preparations which were made for the future may not be enough.
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Life insurance has the potential to cover a variety of expenses such as unexpected medical bills and funeral costs. For anyone who does not have any coverage in place, a term life insurance policy may be something to consider. This article will go over the basics of a term policy, and how it can specifically benefit people over the age of 65. This information can be used by anyone to help determine if this type of insurance is something they need.
What is a Term Life Insurance Policy?
Basically, there are two types of life insurance policies available. A whole life policy means that, as long as the premiums are paid, the person is covered for their entire life. A term policy is a different type which allows a person to be covered for a particular period. A term policy is attractive to many people after retirement when they are only worried about expenses for a short period.
For example, if there are children that are still considered dependent for a few more years, a term policy will be able to cover them until they can take care of themselves financially. With this plan in place, the parent never has to worry about the welfare of their child.
A term policy can be useful in many types of situations. Especially when large expenses have the chance of occurring in the near future. The cost of term policy will depend on several factors including the term, age, sex, health status, lifestyle, coverage amount and so on.
Benefits of a Term Policy After 65:
Retirement is a time to relax while spending time with friends and family. People should not have to worry about the well-being of loved ones during their golden years. Those without any life insurance coverage could benefit with a term policy for many reasons.
- Term policies are often less expensive than whole life coverage
- In the event of a tragedy, term policies can cover funeral expenses
- Income replacement is available with term life insurance
- Beneficiaries receive a tax-free lump sum when receiving the policy’s payout
Who Could Benefit From This Type of Coverage?
While there are numerous, appealing advantages to term life insurance, it is not for everyone. There are a few aspects to consider before looking into obtaining a policy. It is always a good idea to go over current finances and future needs before making a commitment to paying life insurance premiums. After going over their situation, people should be able to determine if they fit into any of the following categories.
- No life insurance policy in place
- No significant savings in place
- Outstanding loans or other financial commitments
- Spouse would need to be taken care of until their Social Security kicks off
- Child will still be dependent up to a specific time
Term life insurance policies are usually put into place for people looking for coverage for a few years where they know their death would cause a financial burden to their loved ones. Some people are aware of their mortgage will not be paid off for a few more years. Others others are concerned with medical expenses that they know one person cannot handle on their own.
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No matter the reason, life insurance coverage can provide financial solutions as well as peace of mind. If a person finds that their future is something that worries them, term life insurance policy may be the answer they were looking for all along.