The Basics of Universal Senior Life Insurance
When shopping around for additional coverage, you may have come across universal senior life insurance. This kind of life insurance for elderly policy holders is a variant of whole life insurance that allows the plan holder more flexibility in terms of premium payments and coverage benefits. As with other kinds of life insurance policies, some industry experts say that this kind of life insurance is not one-size-fits-all, but coverage that can be ideal for those who want to obtain life insurance coverage past their 70s. Here are some things you should know about universal life insurance for seniors.
Savings and Other Options
Policy holders of universal life insurance can select how much coverage they wish to obtain, as well as change the amount of coverage they receive whenever they see fit. If you want to increase or lower your coverage at some point, you can do so with this kind of insurance policy. This kind of policy also works a lot like a conventional savings account, in that it uses a cash value system that has tax deferral benefits. The investment also earns money in the form of the interest rate the insurance provider dictates, which then gets credited to the account of your insurance policy. Aside from flexible coverage and payments, you can also buy into or cancel some features of your policy and take advantage of guaranteed insurability, the waiver of regular premiums due to disability, and family coverage via a term life rider that provides insurance for your offspring and spouse.
Loans and Withdrawals
In case you need extra cash, you may be able to borrow money from your universal life policy. Keep in mind that the number of annual withdrawals is limited based on the rules implemented by your own insurance provider, and that these withdrawals (as well as any unpaid loans) will be taken out of the future benefits your dependents or any other beneficiaries are supposed to receive.
Benefits
Universal life insurance benefits are not taxed. A plan holder may also select one of two options of reimbursement for beneficiaries: withdrawal of the basic life insurance investment or the basic amount and cash value.
Life insurance for seniors is an important part of ensuring your financial health in retirement, and that of your dependents when you pass on. Senior life insurance has to be chosen with coverage needs and financial capability in mind, making universal life insurance best for older seniors who want coverage beyond their 70s, and the added benefit of flexible rates, terms, and coverage.
About the Author:
Katherine Smith is an author who specializes in financial topics concerning seniors. Puritan Financial Group provides better senior life insurance for retirees and investment options that help build stable nest eggs. For more information on how Puritan Financial Group can help you, please visit our website at http://www.puritanlife.com/products/life/life_insurance_for_seniors
Article Marketing
2 people like this article
