5 Factors to Consider When Choosing a Senior Life Insurance Policy

Finding an online senior life insurance policy is not necessarily easy considering the many offers available online. Therefore, it takes effort and time to find a life insurance policy that meets the needs and budget of an insurance shopper. Some of the factors that need to be considered when choosing a senior life insurance term include:

· Do you need the insurance cover?

You will discover that not everyone needs the online senior life insurance policy. In case you are young, single and do not have dependents you may not need the seniors term policy. In such circumstances you are advised to consider other insurance policies such as the 30 year term policy to cater for your days of retirement.

· Type of insurance policy

There are many types of insurance covers available including the simplest annual plan to the whole life insurance policy. To learn more about the product policies you can consider seeking for advice. Depending with your needs you will need to find an appropriate policy. Determine how long you will need the insurance cover. Find out whether you need the term or the specific term insurance policy.

· The cover that you will need

Insurance shoppers are normally encouraged to buy a policy that is about 8-10 times the annual income of the insurance shopper. To choose the right cover you need to determine where and how the insurance benefits will be used. The benefits are normally channeled to the beneficiaries.

In addition, they can be used to pay off any debts or loans, cater for pre-existing medical conditions, cater for the children’s college education, cater for funeral costs and other liabilities. Therefore, it is important to choose a policy that is enough to cover all possible expenses that the dependents may have.

· The company’s background

The background of the company helps to facilitate an informed decision. It is advisable to consider choosing a provider with a good record of handling customers. By reading through the clients’ reviews, referees and recommendations you will get an idea whether the service provider is good or not.

· The company’s premiums

The premiums charged by different service providers vary among different companies. Each of the companies endorses a different format for computing the risks as well as deriving the premiums. Therefore, it is important to find as many quotes as possible to compare. This way, the insurance shopper will avoid paying exorbitant rates for their insurance policy.

Advantages of a Whole Life Insurance Policy And Why You Need It

Whole Life Insurance policies are more expensive than the more popular Term Life Insurance policies but with the extra expense comes additional options that make Whole Life policies more attractive to many consumers when compared to Term Life policies. The most glaring advantage of Whole Life Insurance, besides the lack of expiration date, is the ability of the insured to take out a loan with the cash accrued by the policy, so long as the premiums are kept up to date, the policy and its advantages do not expire until the insured does. The term life policy, however, can expire before the death benefit is paid out, thus leaving the previously insured person in a position of attempting to find a new policy or renew the other policy at an older age that brings with it, higher insurance premiums.

Whole Life Insurance policies carry with them additional features that are hard for some people to resist, as well as beneficial riders that most people deem necessary for extra protection for their loved ones. The most popular riders added to the whole life policies are accident benefits and accrued benefits in the case of disability.

It is true that whole life insurance is more costly that term life insurance, but its premium is the same throughout life, as the policy is guaranteed throughout the insured’s life as well. Term life insurance might be cheaper for the first term, maybe twenty years for a policy, but then the renewal will base the insured’s new premium on their new “older” age and mortality bracket. If at this time the consumer decides upon a whole life policy at this older and wiser age, the premium will be phenomenally more than it would have been for the same dollar value policy twenty years earlier. In the end, the consumer ends up paying thousands of dollars more in the long run, having to purchase a more expensive life insurance policy later in life, and additionally, he or she does not have the extra twenty years of savings and investment income from the whole life policy. So, ageing might bring with it wisdom, but it also brings higher insurance premiums as well. In the case of whole life insurance, it pays to do a bit of research in order to make the better choice the first choice.

Those opposed to whole life policies will use the time honored saying, “Keep Insurance and Investments Separate!” However, as good as this idea may seem, it does not go on to explain that the consumers are expected to use the money they save each month with the cheaper term life premium and use that “extra” cash to invest and make money by investing themselves. First, a person must be committed to take an amount of money that is touted as “extra” and invest it each month in whatever they see fit. Second, in this time of financial hardship, people who are short on “extra” money might not really have the excess to invest, and probably wouldn’t know where to start when it came to investments and stock portfolios and the like. So, it might cost more in the beginning, but the whole life insurance carrier knows how to invest that “extra” money the insured consumers so willingly pay into their future and their families’ future every month. Leave investing to those in the loop and remember it is always easier to do things right the first time!

Life Insurance Settlements – Unlock the Cash From Your Life Insurance Policy Today

A life settlement, or the sale of a life insurance policy, is gaining popularity as a new opportunity for seniors to generate cash. By “cashing in” a life insurance policy, one can reap the rewards of an immediate cash payout without lapsing or surrendering the policy to the insurance company.

Faced with rising insurance premiums, increasing cost of healthcare and long-term care, more seniors today are choosing to sell their policies to third parties for a lump sum payment. Rather than let their policy lapse, seniors have the option of cashing out early and enjoying a higher quality of life.

Seniors can use the cash they receive from the sale to help pay for medical expenses, long-term care expenses, or everyday living expenses. Additionally, seniors are using the “unlocked” cash to travel, invest in a business or new property, or support their children and grandchildren. There are no restrictions or limits to how the cash may be used once the policy is sold.

How does it work?
Seniors who are over 70 and own a policy worth over $200,000 can sell their policy to an insurance buyer, otherwise known as life insurance broker or life settlement brokers.

By purchasing the whole, term, or universal life insurance policy, the buyer becomes the new policy owner. This means that the buyer takes over the premium payments and ultimately collects the full amount of the death benefit.

Who benefits?
As the policy holder, seniors may enjoy a higher cash payout upfront and the savings when the buyer takes over the ongoing insurance premium payments.

What’s the catch?
There is no catch. Settlements are legal and legitimate. Life insurance buyers are able to offer a cash payout because of the structure of their businesses and the financial market.

What should I know before considering a settlement?
The ideal time to sell a policy, otherwise known as taking a life settlement, is when:

1. The policy holder is over age 70
2. The policy is worth $200,000 or more
3. The policy holder is chronically ill, and/or their health is declining
4. Additional cash is needed to pay for cost of health care of long-term care
5. Policy holder is experiencing financial difficulties or needs additional funds to improve the quality of life
6. There is difficulty paying the premiums and are at risk of lapsing the insurance policy
7. The senior would like to remain financially independent

How much money can I expect to receive?
The lump sum payment will be determined on a case-by-case basis. It depends on a number of factors, including age and medical condition, the type and value of the policy and the premiums required to keep the policy active. A no-obligation appraisal of your policy can be requested before making the decision to sell it.

Any policy owner, including individuals, corporations, charities or trusts, may sell any insurance policy, including group and term policies.

What types of life insurance policies can be sold?
Universal Life, Whole Life, Variable Universal Life, Term, and Convertible Term Life policies, Joint and second-to-die policies are all policies eligible for sale.

How long does it take to get the funds once my policy is sold?
A general time frame is four to eight weeks to receive funds though the timing can vary. The buyers work to complete the process as quickly and efficiently as possible so that the money can be released to our clients as fast as possible.

Will I owe taxes on the money I receive?
Generally, the money received from selling the insurance policy will be tax-free up to the original policy’s tax-basis. Consult with a tax advisor regarding your specific situation.

How do I find a buyer for my policy?
Experts at http://www.LifeInsuranceBuyer are committed to achieving the highest value for their client’s insurance policies. Serving their clients with integrity and respect, Life Insurance Buyer offers free, no obligation, confidential policy appraisals for all qualified individuals. Contact Life Insurance Buyer at 1-800-LI-BUYER or 1-800-542-8937 to discuss your policy.