Life Insurance After Retirement l Getting The Best Life Insurance Rates l Compare Best Cheapest Life Insurance Plans
Life Insurance After Retirement:- Senior life insurance can be of great importance to people who have crossed the age of 50 or 65. This is because many people do not want to burden their loved ones with funeral and other related Expenses When they die. A Senior Life Insurance Insurence that your family does not have to shell out for funeral expenses which can prove to be veFurthermore,the death benefit is usually tax free if paid out after the death of the insured.
Just as in any other life insurance, an applicant is asked some health related questions and people with no critical illness may get a very lucrative offer. However if you have any health condition then the premiums may be higher or you may even be denied life insurance. The premiums for a Cheapest Senior Life Insurance Policy can range from $50 to $100 and are affordable compared to other types of insurance.
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Another option for senior citizens is to go for premium financing in which a third party or institution gives out a loan for the payment of the premiums to the policy holder. When the insured dies, the loan and accrued interest is subtracted from the death benefit. The left over amount of the death benefit, which is usually a considerable amount of money, is then given to the insured’s relatives or beneficiaries.
A further option would be a Life Settlement Fund where the insured can sell the policy to a third party at less than the face value. This is effective because the third party stands to gain in case of the death of the insured person. The reason for this is that the face value is much higher than what the company paid to the insured while buying the policy.
Life settlement fund can only be an option if you are over 65 years old (in some cases 55), the face amount of the policy is at least $50,000, the policy should be active for at least two years, and premiums are less than 8%. However the option of choosing between the various products such as Universal Life, whole life, term life, first to die, and adjustable life lies with the consumer.
Life settlement is a relatively new concept but it has taken the insurance sector by storm since many institutions and entities are ready to purchase such second hand policies. The market for this section of life insurance was more than USD 18 billion in 2009. Many professionals are involved in life settlement funds including investors, who purchase the policy, Insurance Providers, brokers, advisers, life expectancy providers and actuaries. These professionals make it easier for all the parties involved to benefit from the contract.
Since life settlement funds are very complex in nature, accountants, wealth managers, financial planners, attorneys, estate planners, and charitable trust officers often act as advisors. On the other hand life expectancy providers (LEP) assess the mortality probability of the insured. Life expectancy providers usually comprise of actuaries and medical underwriters who make use of actuarial models to determine the average survival time in a risk cohort.