Life insurance is an important consideration on your financial plan.
Therefore, the kind of insurance policy you choose and the amount of coverage you get to purchase depends on your financial circumstances.
When purchasing a policy, it is important to tell the truth as you apply for it.
In case you fail to disclose the relevant factors but still make a claim, the company is likely to investigate and cancel the policy.
The factors to consider when choosing insurance for people over 50 include: · Type of coverage When shopping for insurance, it is important to compare the types of insurance policies available in the market.
In general, they are 2 kinds of coverage, namely the whole life insurance and the term insurance policy.
Each of these covers offers a unique benefit.
The whole life policy is normally more expensive.
However, it can be considered an attractive investment because it helps to accumulate cash over time.
The benefits are paid upon the death of the policyholder.
On the other hand, the term policy expires after a number of years.
Some of the common term length includes 10, 20 and 30-years.
Therefore, the term life policy is an affordable option; however, it does not accumulate the cash value.
· Individual goals Once you gain an understanding of the different types of covers available, it is important to determine your individual goals.
The main reason a life insurance policy is bought is to provide for the death benefits that need to be channeled to the named beneficiaries.
Nevertheless, the needs of the beneficiaries vary over time.
Therefore, a new couple without children normally has minimal needs while a couple with children has greater needs.
When the children leave the nest and the couple has attained financial security, the need for a policy normally decreases.
Other than providing financial support for the dependents, life insurance provides legacy to the heirs.
The policy also accrues cash value that is used for different purposes such as payment of mortgage.
· Premium cost Life insurance premiums are normally paid every month.
However, premiums can be paid annually, semi-annually or quarterly.
When purchasing insurance it is important to determine the premium costs.
Although the insurance is bought to accomplish future goals, it should be affordable, today.
Considering the cash value policies are expensive, the majority of insurance shoppers may choose the term life policy because they keep the premium cost low.
Therefore, the kind of insurance policy you choose and the amount of coverage you get to purchase depends on your financial circumstances.
When purchasing a policy, it is important to tell the truth as you apply for it.
In case you fail to disclose the relevant factors but still make a claim, the company is likely to investigate and cancel the policy.
The factors to consider when choosing insurance for people over 50 include: · Type of coverage When shopping for insurance, it is important to compare the types of insurance policies available in the market.
In general, they are 2 kinds of coverage, namely the whole life insurance and the term insurance policy.
Each of these covers offers a unique benefit.
The whole life policy is normally more expensive.
However, it can be considered an attractive investment because it helps to accumulate cash over time.
The benefits are paid upon the death of the policyholder.
On the other hand, the term policy expires after a number of years.
Some of the common term length includes 10, 20 and 30-years.
Therefore, the term life policy is an affordable option; however, it does not accumulate the cash value.
· Individual goals Once you gain an understanding of the different types of covers available, it is important to determine your individual goals.
The main reason a life insurance policy is bought is to provide for the death benefits that need to be channeled to the named beneficiaries.
Nevertheless, the needs of the beneficiaries vary over time.
Therefore, a new couple without children normally has minimal needs while a couple with children has greater needs.
When the children leave the nest and the couple has attained financial security, the need for a policy normally decreases.
Other than providing financial support for the dependents, life insurance provides legacy to the heirs.
The policy also accrues cash value that is used for different purposes such as payment of mortgage.
· Premium cost Life insurance premiums are normally paid every month.
However, premiums can be paid annually, semi-annually or quarterly.
When purchasing insurance it is important to determine the premium costs.
Although the insurance is bought to accomplish future goals, it should be affordable, today.
Considering the cash value policies are expensive, the majority of insurance shoppers may choose the term life policy because they keep the premium cost low.