Buying life insurance can be a bit complicated if you don’t have the proper help. You have whole life, variable universal life, and term insurance. However if you have no idea which one is right for you and if your a senior then it becomes even harder since you are older and may have more medical issues. So in this article I’m going to cover three types of policies and show you which one is the best.
What is Variable Universal Life Insurance?
First off, we have variable universal life insurance. This a permanent policy that offers variable sub-accounts which are invested in the stock market with the money in your cash value account. This policy is also universal which means it is flexible and allows the money that is in the cash value to be used for things like policy loans, withdrawals, and even premium payments if needed.
However as far this policy goes for seniors it’s not a good suggestion since money will be invested in the stock market and it could present a risk of losing money that you’ve saved up.
What Is Whole Life Insurance?
Second, is whole life insurance. This insurance does exactly what it says, it protects you for your entire life. It too is a permanent type of life insurance however the money in the cash value of the account is not invested into sub-accounts in the market but rather a fixed account.
Even though the money you are saving is invested into a fixed account this policy may not be a good choice for seniors since you will also have to make payments for the rest of your life as well in order to keep the policy from lapsing. On top of that if you do want to take money out of the account you will have to either take a withdrawal which may be taxable or take out a policy loan which will charge you an interest rate.
What Is Term Life Insurance?
Finally, you have term life insurance for the elderly. Term insurance is not a permanent type of life insurance but rather covers a person for a specific period of time. Term policies will last as long as 30 years and as short as 5 years. The premiums are fixed and will not change as long as you have the policy or until the term ends.
I recommend this type of insurance for seniors the most because it is the most inexpensive and allows you to keep a shorter term period if you only need coverage for a few years. A good place to look for term insurance is the AARP (American Association of Retired People). AARP life insurance for the elderly is some of the most cost efficient life insurance around, on top of that they also carry guaranteed acceptance life insurance which will cover you no matter what kind of medical conditions you have.
