Are you looking to get whole life insurance for seniors in the United States? It is a great decision and we must commend you for that. You have successfully raised your family, built a solid career and you are now getting to retire peacefully.
For some seniors, shopping for the best whole life insurance policy isn’t easy. They have to check with several policy providers and consider lots of factors before making a decision.
Perhaps, you have signed up for term life insurance and you think it is the best. But when you outlive the policy, your loved ones wouldn’t get any (financial) benefit when you pass away.
We have made it simpler for you by coming up with some of the reasons why you need the policy in the first place.
What Is Whole Life Insurance Policy?
This is an insurance policy that provides lifelong coverage for the insured, in this case, seniors. What this means is that the policy is guaranteed to insure you over your entire lifetime. This is, of course, provided that you continue meeting up with the conditions, including paying the premium.
The advantage of subscribing to a whole life insurance policy over the term life insurance is impressive. One this is that the former pays your heirs or loved ones “death benefit.” Thus, your heirs will receive financial benefits on the maturity of the policy, which is usually, when the insured party (you) passes away.
Why do Seniors Need Whole Life Insurance?
Seniors in the United States are either people between the age of 62 and 65. They can also be people who are within the retirement age. They may be unable to cater for some expenses, except they have enough funds saved for the rainy day. Making some expenses, such as college fees for the kids, running the family, and paying a mortgage will come up sooner than expected.
The reverse is the case with the best whole life insurance for seniors. They can afford to pay these bills and still leave something behind for their families when they are gone.
Here are some of the reasons why you should contact your policy provider for this type of insurance policy:
1. Your Death Benefit is Guaranteed
You may be 62 or 65 when you make your first commitment for the whole life insurance for the elderly. It doesn’t matter when you started. What matters is how committed you are to sustain it.
One benefit that comes with it is that your death benefit is guaranteed. When you die or pass away, your family will receive what insurance providers call the “death benefit.” That is a specific amount of money paid to the family of the deceased who was insured.
However, subscribing to a whole life insurance policy with the hope of getting a death benefit comes with a clause. The clause is that you must have made the required premium payments to keep the policy running until your death. That is the only way for your loved ones to get that death benefit.
2. The Policy Covers You for Life
Getting whole life insurance for seniors over 60 is a good way to insure your life. That is if you pay the premiums. You wouldn’t have to worry about what happens to the family you leave behind. They will get a fixed amount of money when you pass away.
Also, the lifelong coverage gives you the confidence to “live your life to the fullest”. This is because you know that you have a cover as long as you breathe.
3. Fixed Premiums Mean Zero Changes to Your Payment
Are you wondering if you will pay more as you advance in age? By default, the cost of getting the policy differs by age. Seniors between the age of 62 and 65 may get it at a lower rate than those above the age of 70. This is where it becomes necessary to seek affordable whole life insurance for seniors. You can shop around and get the best deals!
Since the insurance policy offers a fixed premium, it helps you save costs. In most cases, the same rate or cost you paid to get it is what you will keep paying a premium to retain the coverage. If there is any discrepancy to this, your insurance service provider would let you know.
4. You Can Build Your Cash Value with Whole Life Insurance
This policy is one of the best for seniors who are looking to have a portion of their premiums saved for emergencies. Of course, you may have a bill to pay and no cash at hand to settle it. Or your kid calls from college requesting adding funds to settle some bills at school. With little or no funds in your bank account at the time, your best bet is to look for where to borrow.
But there may be no need for that since whole life insurance offers “cash value.” This simply means that the provider or insurer will set apart a portion of your premiums. From here, you can make some money to settle some urgent bills.
Besides, the cash value earns a fixed interest rate over time, thus giving you more ways to earn passive income while being insured.
5. Flexibility at Its Best
If you have been looking for a flexible insurance policy, whole life insurance is one such. By flexibility, we mean that you can use the “cash value” to save a portion of premiums paid, as well as borrow against it.
Note: It is up to the insurance provider to decide on whether to offer you this option, as it can sometimes lead to a tax burden. So, discuss with the provider to see if withdrawing funds or borrowing against it can be provided to you within the span of the policy.
What is the Best Whole Life Insurance for Seniors in 2022?
Several insurance service providers like Pacific Life, New York Life, Fidelity Life, and Guardian Life offer different types of life insurance for seniors. Book an appointment with any of them and talk things over. Compare the different offers and quotations from the providers and see the one that fits best into your budget and expected lifestyle as you age. In all, getting whole life insurance before retirement is your best pathway to lead a financially-secured life as you age.