3 Strategies to Follow When Buying a Life Insurance Policy for People Over 65

The loss of a family member can be a traumatic experience. Furthermore, if the family is left without enough money to cater for the essential living needs and to prepare for future goals, the loved ones will, in addition to grieving the loss of a family member, have to deal with a financial crisis. The best life insurance policy helps the family to be financially safe even when the breadwinner is not around. The hints to follow when purchasing life insurance over 65 comprise of:

• Type of Cover

The two main types of insurance policies are the term life and the whole life insurance. The previous one is a personal policy where the benefits are paid out upon the expiry of the policy or upon the death of the policy holder - whichever happens first. Alternatively, the whole life policy is definitely the type where the cash lump sum is paid out upon the death of the policy holder.

Just like the home or car insurance, the term life policy works as long as the premiums are paid. The insurance policy lapses when the premiums cease. You will discover that there are no savings or investment element with the term life insurance - the premiums are paid to cater for the insured event making the policy cost effective in securing a financial position of the dependents.

• Reasons for Applying for Life Insurance Policy

It is quite emotionally devastating to lose a love member of the family prematurely. In addition to proving emotionally overwhelming, the loss can affect their finances. The magnitude of the risk can be determined by how much you will get to earn yearly, multiplied by the years leading to your retirement. The insurance policy can be taken to cater for mortgage, pay college fees, medical and funeral expenses- among other reasons. The right life insurance policy translates to a comfortable home, food on the table, proper schooling for the children and many others.

• Beneficiaries of the Policy

When shopping for insurance for people more than 65, it is important to determine the person(s) who will receive the benefits thereof. The insurance claim or benefits paid are typically of an agreed amount that is paid for in a lump sum to the person(s) nominated on the insurance policy. Typically, in the case of a family, the spouse and/or kids are named as the beneficiaries. The beneficiaries get a chance to spend or invest the benefits as they select. The benefits can be utilized to cater for mortgage, pay college fees and also the balance used to provide for an ongoing family income.

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