Tag Archives: Graded

Life Insurance after 50-Senior Term Life Insurance, Graded Benefit, Whole Life Insurance

Article by Angela Rosas

For consumers aged 50 and up, shopping for life insurance is a different experience than for most. For example, life insurance policies for the 50-and-up individuals are likely to have lower face amounts and higher premiums. There are reasons for this and there are life insurance products that can fulfill an older shopper’s needs.

Why does senior life insurance cost more? While the possibility of a death may be distant for younger customers, the possibility of death grows more likely for senior life insurance consumers and life insurance carriers raise premiums in order to cover the future expense. Anticipate higher premiums and understand that with age comes greater risk. Also use caution when selecting your policy from the life insurance products available; your selection could actually hurt your finances.

Term Life Insurance: Despite the greater costs, do not allow yourself to believe that you have to settle for overpriced premiums in exchange for senior life insurance. Senior term life insurance can still be attained at affordable rates. As with most term life insurance policies, premiums are a fixed amount for the length of the policy, as well as the amount death benefit. The death benefit will be paid if the insured dies during the term of coverage outlined in the contract (usually 5-30 years). Senior term life insurance is most likely the most affordable option.

Graded Benefit: Graded benefit whole life insurance guarantees you a death benefit (without a policy expiration date). However, it does not guarantee you a death benefit of the policy’s full-face amount. For example, if you die within the first two years of the policy, you will only be guaranteed the premiums you have paid, plus interest. Consequently, graded benefit whole life insurance is almost like a gamble: insured individuals need to survive for a least a couple of years in order for a decent benefit to be paid, but if they live too long, their costs can end up exceeding their actual death benefit.

Graded benefit whole life insurance can be expensive, but it can easily lure shoppers because of its promises of how little coverage costs per unit. A single unit will only purchase a very small amount of death benefit, possibly 00 (the actual amount depends on the age of the buyer). This is not a bad type of life insurance per se; however, it is not suited for a majority of life insurance customers.

Single Premium Whole Life Insurance:Single Premium Whole Life Insurance is another life insurance product customized to the needs of senior shoppers. Single premium whole life insurance guarantees a complete death benefit and requires only a single premium payment, paid at the beginning of the policy. The purchaser gives money to the insurer with the assurance that the insurer will pay a greater benefit amount later. What sets apart the single premium whole life insurance policy from a loan is that the time of the benefit payment is uncertain, but the amount to be paid is fixed and guaranteed. This life insurance product is often used for making a charity donation.

About the Author

Angela Rosas is a writer/blogger in the life insurance industry.