Why Term Life Insurance Is Best For Elderly People

January 13th, 2010 — life insurance

Are you over the age of 60 and looking to buy term life insurance?  If so you may want to read this article as to why term life is the better life insurance for elderly people than any other insurance out there.

5 Reasons Why Term Is The Best

  1. Term is Cheaper. First off, the biggest reason why term is better is because term will be far cheaper than a whole life, equity indexed, or variable universal life insurance policy.
  2. Term has no cash value.  With a cash value you are saving a portion of you premium payments you make towards the cash value.   This money is not easily accessible and requires you to take a policy loan to get it.  Being older it’s better to have money in a more liquid state so you can get to it easier.
  3. You can decide how long you need the policy. That’s right term policies come in all different shapes and sizes.  For example, the typical term policy will be as short as 5 years or as long as 30 years.  The benefit to this is that a 5 year term policy will cost far less than a 30 year policy because the insurance company has to take a much larger risk for the longer time frame.
  4. You can get a return on your premium if you don’t use it. Let’s say you take out a 10 year term policy at age 60 and at age 70 you are still alive, you may be able to get back most of your premium payments if you add a return of premium rider to your policy.  This won’t pay you back 100% but most will be paid back.  To find out how much you do get back call your local insurance agent.
  5. Term prices never change. If you compare a term life insurance vs whole life insurance policy, the whole life will cost more every year even though your payments may not change because the amount you pay into you cash value will decrease over time and you will save less in your cash value hence paying more on your policy.

In Closing…

You will want to discuss all of these benefits with your local insurance agents before making any final decisions.   You will also want to discuss the cost of insurance and run several illustrations before making your mind up.

Comments Off