Term Life Insurance at 68

Term life insurance is designed to replace the financial help given by a person in the event of his death. Term life insurance at 68 and lottery are purchased for different purpose. Winning a lottery is not restricted to your death. But to get the insurance amount surely is. Insurance benefits are meant to let continue the lives of your beneficiaries in case you are gone.

It means that one should apply coverage on him if people rely on you, or carry coverage on someone you can rely on. Important people that can be considered include spouse, parents, partner, business associate or child. Their financial support can come in various forms; their salary that supplements the income of your joint family.

Various Types Explained

There are two different forms- Term life and permanent life coverage. Term life coverage provides coverage for a specified period of time, on the other hand, permanent coverage have an additional investment component attached to them to continue the policy for an unlimited period of time.

ART or annual renewable term starts at a low premium which increases every year as it is renewed. The policies issued for thirty, twenty or ten years have a higher premium than ART but it remains stagnant for the whole coverage period.

Group term insurance is offered by the employers and its premium increases each year. On the other hand, permanent coverage has an extra saving feature which is invested back and its value is then used to fund the cost of the policy as the person age. This feature, however, makes these policies much more expensive than other plans.

Term Life Insurance for Whom?

The most essential feature is the death benefit, particularly for people in their 50s and 60s. Permanent insurance will cost a lot as if it is purchased at a later age. But the extremely low cost does not make considerable difference due to age.

Although no one is sure as to how long he or she will live, but still purchase insurance for as much tenure as you can get. For instance the tenure must be able to pass the time it takes for the kids to become completely independent, or the period it takes to finish with your mortgage payments.

When you buy insurance make sure the company has a strong reputation. A reputed company is a guarantee that your death benefits are in safe hands. Know the rating of the company, Standard & Poor’s, Moody’s or Weiss. An ‘excellent’ or ‘superior’ rating means that the company is safe.