Prepaid Life Insurance for Seniors
Life insurance is a term that defines a contract between the insurance company and the insurers that serve as a death benefit to the dependants of insured person in case of his untimely death. There is a given amount that we have to pay as, a premium for these insurance policies for a certain period of time. While there are various types of life insurance, here we will discuss prepaid life insurance for seniors. Seniors here refer to those people who have crossed an age of 60, in most of the cases.
In the case of seniors the prepaid life insurance is mostly bought with the purpose of covering the funeral and after rites of the person or to pay off the debts (if any) after the death of the insured person. The elderly people make an informed choice about the way their funeral should be conducted by purchasing prepaid plan well ahead of their time. Usually, these insurance policies that are referred to as burial insurance policies also are often not based on the health condition of the client as their premium is paid well in advance, so they do not require any medical examination of the person. People, at a later age, purchase these policies so that after they leave the world, their family can pay for their final expense or any other expenses incurred due to their poor health in the last days.
Why Should You Consider Prepaid Life Insurance for Seniors?
If you are a senior and plan to invest your money in an insurance policy that can help your family even after your demise then you can consider buying prepaid life plan.
In some cases, the seniors realize that they have been denied a traditional insurance coverage, so they plan to buy prepaid life insurance. These plans work the best for very old and unwell people. As they are not able to attain any other insurance, a prepaid policy can help them in reducing their worries about monetary responsibilities of their family after their death.
This policy also works ideally for those who do not have a good amount of savings. They can use this plan to enable their family to afford their final expenses. Mostly these policies do not require a high amount of premium. A little amount paid per month can work as a premium.
How Does It Work?
In a prepaid life insurance policy, the payments have to be made by the policyholder much in advance. The company that issues this policy decides on the period in which the pre-payment can be made. It can be anything from one year to a number of years depending on the company rules and regulations. Having already secured the payment from their client, the company pays back the money to the clients’ family or dependants (as nominated) after the death of the client so that they can use the money for meeting his last expenses. It can be anything from his burial expenses to the medical bills or any debt in the name of the client.
Is It Possible to Return the Prepaid Life Insurance Policy?
Like other term insurance policies, the prepaid policy also comes with an expiry period that means if the policy holder survives the term of policy as mentioned in the documents, it gets expired. Though the prepaid policies are refundable, as the cause of prepaid life insurance for seniors is different in most of the cases, they can consider renewing the policy instead of considering the return of life insurance. The company agents will be able to guide them through the process of renewal.
Advantages of Buying a Prepaid Funeral Plans for Seniors
Prepaid life insurance policy is different than any other life insurance policy in a way that it is meant to carry out your final expenses. However, the benefits can be correlated in many cases. One prime advantage is that the policy holder knows that it will financially enable his dependants to meet his burial and other final expenses even after his death. This feeling makes him spend his last a few years in complete dignity and peace. He doesn’t consider himself as a burden on the family until his last breath.
One prime advantage is that the policy holder knows that it will financially enable his dependants to meet his burial and other final expenses even after his death. This feeling makes him spend his last a few years in complete dignity and peace. He doesn’t consider himself as a burden on the family until his last breath.
Secondly on the part of the family also, being financially equipped to deal with the expenses of a funeral of their loved one, they take full care to perform the last rites as per the desire of the policyholder.
For seniors, these policies are a good option to relieve their financial responsibilities and live a peaceful life with the people at the time when everything that matters to them is their family.