No matter what age we are there are always reasons why life insurance can be an essential need for us.
Just because senior citizens in general no longer work it does not mean that they do not have financial liabilities that need to insured.
Over 60 life insurance is something that is popular both in the UK and the USA and provides much needed cover to the elder generation.
As with any life insurance products the price goes up the older you get as the bare and unfortunate fact is you are much closer to meeting the grim reaper himself so therefore present a greater risk to the insurer.
However the costs that partners and families are left with could be potentially disastrous so the price of the cover is well worth it in the grand scheme of things.
So some might ask well what do people over 60 have to pay for? The list below provides a brief outline: * Mortgage - There is no set age that people pay their mortgage off by, there is just as much chance of somebody over 60 still having a mortgage than people of a younger age.
* Funeral costs - Elderly couples with little or no income may not be able to afford the costs of a funeral should one of them pass away.
Cover can be a much needed safe guard in this situation.
* Loss of income - Senior citizens who may not have any form of pension income may still work part time to support themselves or their partner.
* Inheritance - Some people who do not have anything saved to pass on to family members may wish to take out cover so a sum is passed on when they die.
This could be if they still depend on the deceased in some way financially or again to pay for funeral costs.
It's not so they can take a cruise! * Care costs - Some senior citizens are full time carers for their partners.
Insurance can pay for the partner to receive the much needed care in their absence.
Much like an impaired risk life insurance policy, an over 60 life insurance policy may have certain restrictions such as the amount of life cover that is available, or certain exclusions applied to the policy before it is accepted and put into force.
This does restrict the claims that can be made on the policy but the alternative of not having cover is a very foolish risk that too many people take and subsequently suffer from.
The negative aspect to an over 60 life insurance policy is that people may find that an expensive premium and a low sum assured can see later in the policy that the amount paid in premiums has exceeded the actual death benefit.
This sounds absolutely absurd and for normal insurance products and the large sum assured benefits that are taken out, this would never happen.
This type of insurance may be an exception and before committing to a policy and taking it out it may be worth calculating whether this could potentially be the case.
If you are to find out that this is the case then clearly it is not worth taking the cover out.
By saving the sum you would be paying as a monthly premium you would exceed the beneficial value of the policy and the extra that would be paid and lost by having the policy would in this case be accumulated with your savings.
However if cover is taken out through a financial adviser or broker they should be applying for the policy that best suits your need and that is also the best value so this scenario is unlikely to happen.
It is advisable in any case for people to speak to an adviser or broker but perhaps more so with an over 60 life insurance policy in mind.
Just because senior citizens in general no longer work it does not mean that they do not have financial liabilities that need to insured.
Over 60 life insurance is something that is popular both in the UK and the USA and provides much needed cover to the elder generation.
As with any life insurance products the price goes up the older you get as the bare and unfortunate fact is you are much closer to meeting the grim reaper himself so therefore present a greater risk to the insurer.
However the costs that partners and families are left with could be potentially disastrous so the price of the cover is well worth it in the grand scheme of things.
So some might ask well what do people over 60 have to pay for? The list below provides a brief outline: * Mortgage - There is no set age that people pay their mortgage off by, there is just as much chance of somebody over 60 still having a mortgage than people of a younger age.
* Funeral costs - Elderly couples with little or no income may not be able to afford the costs of a funeral should one of them pass away.
Cover can be a much needed safe guard in this situation.
* Loss of income - Senior citizens who may not have any form of pension income may still work part time to support themselves or their partner.
* Inheritance - Some people who do not have anything saved to pass on to family members may wish to take out cover so a sum is passed on when they die.
This could be if they still depend on the deceased in some way financially or again to pay for funeral costs.
It's not so they can take a cruise! * Care costs - Some senior citizens are full time carers for their partners.
Insurance can pay for the partner to receive the much needed care in their absence.
Much like an impaired risk life insurance policy, an over 60 life insurance policy may have certain restrictions such as the amount of life cover that is available, or certain exclusions applied to the policy before it is accepted and put into force.
This does restrict the claims that can be made on the policy but the alternative of not having cover is a very foolish risk that too many people take and subsequently suffer from.
The negative aspect to an over 60 life insurance policy is that people may find that an expensive premium and a low sum assured can see later in the policy that the amount paid in premiums has exceeded the actual death benefit.
This sounds absolutely absurd and for normal insurance products and the large sum assured benefits that are taken out, this would never happen.
This type of insurance may be an exception and before committing to a policy and taking it out it may be worth calculating whether this could potentially be the case.
If you are to find out that this is the case then clearly it is not worth taking the cover out.
By saving the sum you would be paying as a monthly premium you would exceed the beneficial value of the policy and the extra that would be paid and lost by having the policy would in this case be accumulated with your savings.
However if cover is taken out through a financial adviser or broker they should be applying for the policy that best suits your need and that is also the best value so this scenario is unlikely to happen.
It is advisable in any case for people to speak to an adviser or broker but perhaps more so with an over 60 life insurance policy in mind.