Do you know that people who are over 85 years of age can still get a life insurance? In the past, that would have been impossible but in these days when old people are more agile and self sufficient, having a life insurance at an old age is getting more and more popular. In fact, a senior citizen of this age is not just stuck with one choice of life insurance.
In this article, we are going to explain what are the 2 types of life insurance available for seniors over 85?
There is an annual renewable policy and there is also a permanent life insurance. There are pros and cons to both types of insurance. However, before we discuss their differences, let us first learn about the things that they can offer to the policy holder.
With a life insurance, the holder is allowed to have beneficiaries. There is a primary beneficiary who will get most of the money in case something untoward happens to the life insurance holder and there are also secondary beneficiaries who will get a smaller amount. It is the insurance holder who determines the beneficiaries and the amount that they will receive depends greatly on the type of insurance that the holder availed of. The same is true for the 2 types of life insurance (for over 85) I am going to explain now. Regardless of which type you are going to get, you will surely get those benefits if you are still insured.
What is annual renewable policy and what makes it different? The main differentiating factor is that as the name suggests, this type of insurance policy has to be renewed on a yearly basis. The good thing about this is that every year, you can customize the benefits that you want depending on your needs that may change from year to year. The set back, however, is that there is no fixed rate for this kind of insurance. As you age, your insurance fee may increase. In fact, depending on one’s health condition, there are those whose insurance is no longer renewed after the age of 84. However, if you show that you are still healthy, the insurance can extend way beyond that age.
The other option is the permanent life insurance. As the name suggests, with this kind of life insurance, termination is not a problem. That means that the insurance policy holder will be insured until the day of death. The good thing about this type of insurance is that you do not have to worry about the protection of your family because that will surely be covered. The main problem with this type of life insurance is that because of the high risk to the insurance company, the rate tends to be higher than its annual renewal counterpart.
These are the types of life insurance available for seniors over the age of 85. Choose one that caters to your needs and lifestyle.