Affordable Life Insurance for Seniors

It is a very common belief that life insurance companies will not cover individuals over a certain age, after all, as we extend into our golden years our eventual demise becomes only more certain. I have even heard people say, “After you hit 65, your risk of death is too great. Why would any insurance company provide life insurance for someone that old?”

Logically, this does make sense. In fact, years ago, it was a fairly accurate statement. Today with rapid advances in medicine and technology that have greatly extended our life expectancy, there are a lot more options available for someone seeking senior life insurance at relatively affordable rates. Can you get a less expensive policy at 25 versus 65? Absolutely. The important thing to note is that at 65, you are not out of options.

Most people understand that when a life insurance company is calculating what to charge you for a policy, they are really factoring in the likelihood of your death during the term of the policy. When you are young and healthy, you can expect to pay next to nothing for your premium. The older you get, your mortality rate increases, and the more expensive life insurance becomes.

Today, insurance companies pay closer attention to your health status than ever before. They will always pay attention to your age, but you can expect to pay significantly lower premiums by maintaining good health. Chronic diseases like type 2 diabetes and arthritis become more likely to afflict us as we age, but even these health problems do not make you uninsurable.

It is never too late to work on improving your health. Losing a few pounds at the gym can often cut 25-50% off of your life insurance premium. If you are a smoker, quitting is one of the best ways to save money on life insurance. These days with cigarettes becoming more and more expensive, it is a great way to save money, period! Your body mass index, or BMI, can play a role when determining your insurance rate. A good rule of thumb is to try to maintain a BMI under 25. WebMD has a pretty good BMI calculator you can use.

Life insurance rates are usually locked in for the life of the policy, so you want to start off in the best possible health. If you think your state of health today is going to put too much of a drain on your wallet when it comes to picking up a senior life insurance policy, spend a few months improving your diet and visiting the gym 3-4 days a week. Doing so, could save you thousands of dollars over the life of your insurance policy.

You are also going to want to look at term life insurance policies versus whole life insurance policies. Without going into the specific details, whole life insurance has an added investment component. Whole life policies are sometimes used in conjunction with a retirement savings strategy. As such, there is an added cost to these policies. A senior looking for life insurance, is not looking for retirement investments. Your policy is already going to be more expensive because of your age. Do not compound the cost by purchasing a whole life policy.

You are also going to want to make sure you purchase the right amount of coverage. As a senior, you are likely not raising a family anymore. You are not going to need the same amount of coverage you might have needed at 30 or 35. You might only need to cover some small debts and funeral arrangements.

There are many carriers that offer senior life insurance, so do not feel like you have to buy a policy from the first insurance company you talk to. Shop around a bit and see if you can get better rates. Even just a difference of $25 a month, over the course of a 20-year term, is going to save you $6000 if you live out the full term. The great thing about the age of the internet, is it is very easy to get multiple quotes at once to compare.

Term Life Insurance

Shopping for term life insurance can be a daunting task, especially if you are new to buying life insurance. How much coverage you need, which types of policies to buy or even which company to buy your policy from are all important questions to ask before deciding on a policy. You can begin by learning more about term life insurance and what you should look for when committing to a policy.

What is Term Life?

Life insurance policies are usually either whole life or term life. Term life is used to describe policies that cover a specific period of time and are paid out in the event of the policy holder’s death. Term life is often more affordable than whole life but will need to be renewed after the specified period of time is over. After the policy expires, your rates, or the amount you pay, can change depending on factors such as your personal health.

Choosing a Policy

It can be tempting to choose a life insurance policy based on price alone, but the reality is that the coverage offered is more important than the cost. You will want to opt for a policy that offers your family enough to live on in the event of your death. Working with a professional insurance agent can be helpful in deciding how much and which types of coverage you need. If you prefer a third party opinion, try consulting a financial advisor to determine a coverage amount that is right for your personal needs. Once you know how much you need, it is easy to shop for life insurance quotes online to help make a decision.

Read the Fine Print

Term life insurance policies can be difficult to understand but it is important to read through the fine print before purchasing a policy. Brush up on your insurance terminology to make sure that you understand the policy, or opt for consulting an independent insurance broker to look over your policy for you.

Choosing a Company

In most cases, working with a well-known, reliable company is your best option for term life insurance. Most insurance is sold locally through agents or online. You should ask questions about your policy before making a commitment and be sure that the company is reliable by checking the Better Business Bureau for their rating. Most insurance companies are willing to work with you to create a policy that meets your needs perfectly.

Be Honest

If you have a chronic illness or other medical condition, make sure that you have disclosed the information on your policy to ensure you are covered. Most insurance companies will investigate before paying out a claim so you may lose benefits if you aren’t honest on the application. If you have a condition that you are worried will disqualify you from getting coverage, you might want to seek out companies that specialize in offering coverage to people with your same condition or that provide life insurance with no medical screening. They often offer life insurance with no waiting period, so your coverage goes into effect almost immediately.

With a little research, you can have the policy you need for a secure future even if you have a preexisting health condition.

The Benefits of Having Burial Insurance

There are many ways to prepare for the things that life can throw your way. From automobile accidents to medical illnesses, insurance proves to be a great way to prepare for such incidences. Another great option in preparing for the inevitable is by purchasing burial insurance.

Burial insurance should be viewed as a major asset to your family. In the event that you leave them behind, you won’t have to worry about them paying for your funeral expenses, which could lead to be a financial disaster for them. There are many benefits accompanied with burial insurance. Let’s dive in and take a close look at several of them.

A funeral insurance policy will pay out benefits to pay for a wide range of funeral services. From memorial service fees to the transportation expense of a deceased body from the funeral home to the grave yard, the financial assistance from the policy will prove to be very valuable. Many times, burial insurance will allow a policyholder to choose exactly what takes place after he or she becomes deceased. For example, you can choose what type of coffin you want, the colors of the flowers that you want displayed and much more.

If you travel in and out of the country on a frequent basis, you need to make sure that you acquire a policy that will pay for the transportation of your body to your home country in the event that you die while traveling abroad. Such a policy will also complete for your family the necessary paperwork that it takes to have your body shipped home.

The most advantageous benefit of burial insurance is that you will be protecting your loved ones from having to delve out thousands of dollars to cover your funeral expenses. When your death takes place, there is likely to be much grieving among your family members and loved ones, so it is extremely important that you lessen the emotional trauma as much as possible. A great way to do this is to have your funeral expenses paid for through funeral insurance.

Death is not something that most people look forward to, but it is something that everyone should prepare for. Make sure you speak with an experienced burial insurance specialist today to learn how a policy can be of benefit to you and your family.

Can I Afford Life Insurance?

Most people understand the need for life insurance. The problem is finding the means to pay for a policy. What most people are not aware of is that the cost of life insurance has substantially dropped in recent years. This has happened because of intense competition between insurance brokers, agents and insurance companies on the Internet. The cost of a typical policy is going to be less than you imagine. Before you start to look for a low cost policy, you need to keep a few things in mind.

The lowest cost life insurance policy that you will find is for what is called term life insurance. Simply put, this type of policy is in effect for a certain period of time, hence the use of the word term. This type of insurance is good for people at every stage of their life. When people are younger, a policy can be taken out for amounts as high as a half million dollars. This is usually more than enough to take care of a family with young children when the breadwinner of the family dies. This is the most popular choice among consumers looking for cheap life insurance.

Because term life insurance is only for a specified amount of time, the coverage can be adjusted as circumstances change in an individual’s life. As children grow older there is less need for a high benefit. After a ten year policy has expired, a new policy can be purchased for a smaller amount, and once the children are grown up and have their own lives, the benefit amount can be reduced further.

A reduction in the benefit of the policy works to cancel out the increase in premiums due to age. As a man or woman age, the chances of death increase and so does the premium. However, the need for a high benefit amount decreases. A lower benefit reduces the premiums, so the result is that they tend to cancel each other out.

A term life policy is also low cost for the elderly, and this is a great idea for those with few assets. An individual can name a person as beneficiary that will handle the expense of burial and a funeral. A $5,000 to $10,000 policy is plenty to take care of all the expenses incurred after death. This type of policy can be purchased for only a few dollars a month and helps people avoid becoming a financial burden to loved ones after their death.

Why You Should Have A Plan for Your Estate

Many people think that only the rich need to plan for their death, but almost everyone has assets. Planning your estate allows you to guarantee that your assets are distributed the way you want them to be. Estate planning should begin as soon as you become an adult and should be reevaluated every time you have a significant change in your assets or life.

What to Include

An estate plan may include a trust, a power of attorney, a will, and a health care power of attorney. It’s important to choose beneficiaries carefully and not spend all your time focusing on avoiding taxes. It’s best if parents will a certain amount of money or assets to each child instead of having the children divide up the funds between themselves. An unclear will is likely to cause a rift between siblings, especially if some of the assets must be sold in order for the children to divide the proceeds.

Set a Guardian for Your Children

Planning for your death can be difficult emotionally, but having a plan in place will bring you peace of mind. Most people find it especially difficult to name a guardian for their children, but it’s an important step. The last thing most parents want is for their children to become part of the foster care system because they didn’t name a guardian before their untimely deaths. This is a decision that should be revisited often to ensure that the person you have chosen is still the right person for the job.

Don’t Forget to Revisit Every Asset Periodically

Most employees set up their employer-sponsored retirement plan and never change the beneficiary. It’s important to revisit your choice every year or two because the money will be given to the person who is named on the plan, even if you have a different beneficiary for that asset written into your will. The beneficiary of your life insurance policies should also be revisited every couple of years.

Although planning for your estate is an emotional process, it is also an essential one. Taking the time to set up an estate plan makes your death much easier for your family to handle. The only way to make sure that all of your wishes will be honored is to have an estate plan in place.

The debt ceiling: what is it and why is it important?

Unless you have been living under a rock for the past month, you have undoubtedly heard the term ‘debt ceiling’ thrown about. It is all over the news, every political talking head is talking about it, your friends are posting about it on Facebook. But what exactly is the debt ceiling?

The debt ceiling is a cap set by Congress on how much money the government can borrow in order to pay its debts. Why is it important?

The major credit rating agencies may decide to consider the United States in default if it fails to pay its bills, and many economists have warned that there could be a significant to catastrophic slowdown in the economy with job losses coupled with a sharp rise in interest rates impacting everything from credit cards to mortgages.

There is also the fear that foreign investment in U.S. Treasuries would dry up overnight.

The federal debt is the amount of money that the government owes for spending on things like Social Security, Medicare, military salaries, interest on national debt, and tax refunds.

One thing to keep in mind is that this is not future debt. The debt limit simply allows our government to finance existing obligation that Congress has made in the past.

The idea of the debt ceiling was first introduced in 1917. Prior to that, any borrowing the government did had to be approved by Congress on an item by item basis. At that time the United States was entering into World War I. In order to provide more flexibility for government spending, lawmakers gave the government approval for all borrowing as long as the total remained below a specific number set by Congress.

Whenever the government is approaching the debt limit, which means it needs more money to pay its current debt, Congress has to vote its approval to raise it.

If Congress fails to raise the debt ceiling, the government will not have money to pay its current bills and will technically be in default.

Have we done it before? Yes. To be exact, 78 times. While Democrats are often considered to be the bigger government spenders, the debt ceiling has been raised 49 times under Republican presidents and 29 times under Democratic presidents.