When it comes to life insurance, there are many things that people know that can help them choose the right products for their particular needs. However, there are several things that may be extremely helpful to senior citizens to help them defray the cost of life insurance and to ensure that they have the life insurance they need to help take care of final expenses.
Here are five things that every senior citizen should know about life insurance:
1. Avoid Fast Rising Premiums
After a certain age, life insurance premiums begin to rise sharply. This is particularly tough for those who are living on a fixed income. There are two ways to offset this increase: choose a term life policy that remains in force for a much longer term or reduce the face value of the policy to lower the monthly obligation.
2. Monitor Term Insurance Increases
When term life insurance expires at the end of its term, you have two options: convert the policy to a whole life policy or be underwritten for a new term policy. For older individuals, the underwriting policy will result in a much higher monthly premium than the initial term, especially if you have health conditions. Talk to your insurance agent about the best possible choice for you when it comes to meeting your insurance and budget needs.
3. Pursue Payouts from Policies
Did you know that up to 85% of life insurance policies never pay out a death benefit? It’s true. Most life insurance policies never have death benefits claimed against them. As a policy owner, you need to ensure that your beneficiaries are up to date and that you choose to receive a cash value where possible and even selling your policy in a settlement.
4. Avoid Cash Surrender Fees
Some life insurance policies require you to pay a penalty when you choose to cash out the policy. There are plenty of life insurance products out there that don’t charge this penalty, so beware of purchasing a policy that requires it.
5. Be Aware of Policy Maturity
Most people aren’t aware that their life insurance policies will expire when they reach 95-100 years of age. At this point, the insurer will pay the cash value of the policy to you, unless you’ve previously used the cash value of the policy for other needs. This means that if you’ve previously tapped into the cash, there won’t be much available to you when the policy expires/matures. That is, unless you’ve gotten a life insurance extension rider, which will extend the life of your insurance policy until you reach the age of 120.
If you have other life insurance questions in New Hyde Park, the best way to get answers is to find life insurance companies New Hyde Park NY and schedule an appointment to speak to a licensed insurance agent. Call and schedule your appointment today.
If you are looking for life insurance companies New Hyde Park NY, then you need to contact the McNicholas Agency. They offer quality life insurance products designed to address any need.