Life insurance is a type of investment that provides coverage for the policy holder’s dependents in the event of the policy holder’s death. There are different types of life insurance plans for senior citizens.
Life Insurance Plans For Senior Citizens
Some of these include terms, survivorship, and whole life. Term insurance requires the purchase of a term policy from an insurance company and coverage begins on the first year of the policy.
When it comes to whole life insurance plans for senior citizens, it allows the purchase of a policy with a cash value life insurance. The cash value of the life policy can be used to purchase an additional life insurance policy or to fund the college education of the surviving members of the family. The most common type of whole life insurance is universal life insurance.
This plan allows the policyholder to borrow funds from the life insurance company and roll over the cash value to another account, usually into an interest-bearing account. It allows the policyholder to borrow up to one hundred percent of the policy’s value.
Many seniors consider their life insurance as an important investment because the investment yields a higher return than the insurance’s actual purchase cost. For this reason, life insurance for senior citizens is considered one of the safest investments. This is especially true for people who are approaching the age of sixty-five years.