Are you planning ahead of time and thinking of your future now? That is a very smart move that more and more people are starting to take. After all, times are hard and no one knows what the future holds. It is always best to face it prepared than to be caught without any preparation at all when the time comes. That is why a lot of people are now aiming to be an insurance policy holder. That way, they can sleep better at night and rest assured that they have planned for their future in advance.
However, before one can even think of getting an insurance policy, it is an absolute must for him or her to fully understand the terminologies and what it takes to get one. After all, it is a big responsibility once the policy has been signed. It means an additional financial commitment on top of your monthly bills. Hence, it is wise for a person considering insurance to have a good and comprehensive understanding of it. That way, he knows what he is getting himself into.
Perhaps the most basic thing that a person should understand when getting insurance is the terminology. One of the most basic terminologies that a person must know is “insurance policy holder”. Simply put, it is the person who opts to get insurance for him or herself. He is the person who is paying for the monthly premium regularly and he is also the one who benefits from the policy that he chose to get. Hence, the insurance policy holder is the one insured.
What does an insurance policy holder need to know? To begin with, he needs to fully understand the coverage of the policy. In fact, this is something that he or she should know thoroughly even before the contract is signed. That way, he knows what he is entitled to, should he have the need for it.
Second, he should be faithful in paying for the monthly premium of the insurance policy. As I mentioned earlier, getting one is a big financial obligation. Hence, you must set aside a certain amount of your hard earned money in order to pay for it. Failure to do so could mean cancellation of the policy which would be such a waste especially if you already paid for it in the past. Hence, it is a must for the policy holder to be responsible in paying for the monthly premium.
Perhaps the very reason that an insurance policy holder chose to get one is the fact that he or she knows that the future is bleak and so they choose to plan for it. That way, they are able to weather any storm no matter how big it is.
Getting life insurance is something that most people are not really familiar with. Sure, you may have heard of the term but unless you are in the insurance industry or perhaps a lawyer, most people have a very basic (or even wrong) notion of what a life insurance is. In fact, there is such an information gap to the point that a lot of people really do not understand the difference between life insurance and health insurance. Perhaps that is also the reason why most people do not visit life insurance companies the way that they would to a department store. Most often than not, insurance agents have to approach the person and offer them one. The problem with that, however, is that if one does not fully understand the concept behind. He or she can easily be swayed to buy without knowing the pros and cons and the things that policy holders are entitled to. That is why it is important to know the right questions to ask. This holds true for senior citizens over the age of 85. These questions are necessary in order to understand the full picture before paying your hard earned money and signing a contract.
One of the questions that a person being offered a life insurance policy to ask is what are the inclusions of the life insurance? What is the coverage? It is important to have the insurance agent write it down one by one so that you know exactly what you are signing up for. Maybe there is a benefit that you are entitled but if you are not fully aware of it, how can you achieve it? Different types of insurance have different coverage in terms of depth and service. You must also know the inclusions in order to get an insurance policy that fits your needs. Remember, it is not a “one size fits all” deal. That is why knowing your options are so important.
Second, you must ask for the monthly premium that you have to pay for. Make sure that you know all the hidden charges and you can go ahead and ask them bluntly. That way, you know the exact amount that you have to set aside every month. You will not be shocked when you see your premium bill and it is higher than what you expected. You have to know exactly what you are getting. After all, we are not talking about a small amount of money. That is why asking all the right life insurance questions are so crucial.
Third, ask for all your options. Maybe there is a lower cost option that they will not tell you initially in hopes that you will get a bigger policy. You have to be proactive and probe the agent as well by asking pertinent life insurance questions for someone over the age of 85.
The good news here is that seniors who are over the age of 85 years old have an option now to invest in life insurance. That way, they can be sure that their families and loved ones are safe and have nothing to worry about should something untoward happen to them. In the past, this would not have been possible. After all, why in the world would an insurance company invest on a person who is not at the peak of his life? Then again, times are changing and the term “old” has become relative. Thanks to the revival of health and wellness, people who were once considered “old” are still living active and fruitful lives. Recognizing that, insurance companies are now willing to extend the length of insurance. However, it will come with a cost. That is precisely why over 85 life insurance costs are much higher than the regular one.
While there are a lot of healthy seniors around, the cost to obtain such a type of life insurance are still much higher for a very simple reason: the younger you are, the lower the risk of the insurance company on you. Of course, the healthiest senior under normal conditions cannot really compete with the physique of a regular 30 year old. Besides, logic dictates that the younger man would live longer than the older man. Hence, he would have more time to pay for the insurance monthly premium. Hence, the cost would be lower.
Because of his or her age, life insurance costs for such seniors will be much more than the insurance of a young person. Then again, that is way better than the unavailability of life insurance for people as was the case in the past.
However, there are other determining factors for the cost of a senior’s life insurance. Please take note that it does not automatically mean that just because you are of the same age, your insurance monthly premium will be the same. In most cases, that does not happen for the very simple reason that lifestyle is a big factor when it comes to health and wellness. Naturally, a senior citizen who takes morning walks, avoids fatty and high cholesterol food, does not smoke and does not drink is healthier than his counterpart of the same age who has vices, loves rich food, eats a lot of sweets and is a certified couch potato. Their state of health will then be reflected in the monthly premium. Their life insurance costs will then vary. A senior citizen with a healthier lifestyle will have a lower premium compared to one who chooses to not mind his body.
Another factor to the life insurance costs of people over 85 is the coverage. Not all life insurance policies are created equal. Naturally, those with a larger coverage would cost more than the one with smaller coverage. That is why you have to choose the kind of life insurance that best suits your lifestyle and budget.