Is Whole Life Insurance Right for You?

You are unlikely to meet someone who has ever experienced a positive emotion in regards to insurance. People who have health insurance are still annoyed when you remind them that they would be even worse off without it; they are mad because they have to pay so much out of pocket and because their premiums are expensive. Car insurance companies are also a frequent target of anger. If the accident was the other driver’s fault, you are angry that the payout from the at fault driver’s insurance policy does not cover the total cost of your repairs. If you are at fault for the accident, you are angry because your premiums will increase because of it. Life insurance is downright depressing. When you are young, it is a reminder that you are worth more dead than you are alive. When you are so old that you are uninsurable, it is depressing to think that life insurance companies are not willing to bet on you staying alive long enough for them to break even on your payout amount. Of course, this only applies to term life insurance; more senior-friendly types of life insurance exist. To find out more about affordable ways to buy financial stability in your old age, contact a Dade City estate planning lawyer.

How Is Whole Life Insurance Different From Term Life Insurance or Hybrid Life Insurance?

Term life insurance only pays death benefits, and it automatically expires after a certain term, such as 30 years. The premiums are dirt cheap. Most 30-year-olds who buy term life insurance are still alive by age 60 when their policies expire, so the insurance company makes a profit. Insurance companies will only sell you term life insurance if you are young and reasonably healthy, if it is more likely or not that you will still be alive when the policy expires, and they will not have to pay you anything.

Since term life insurance is not an option for seniors, then at your age, you can choose hybrid life insurance or whole life insurance. Hybrid life insurance pays for up to five years of long-term care, and if there is any money left on the policy when the policyholder dies, the remainder becomes a death benefit payable to the designated beneficiary.

Whole life insurance is even more flexible. It has death benefits, and you can use it to pay for long-term care. It even has a cash value component that functions like a savings account or reverse mortgage. As a result, whole life insurance premiums are more expensive. A 50-year-old woman who does not smoke and has no chronic illnesses can expect to pay more than $200 per month, and the premiums only get more expensive from there.

Contact a Florida Estate Planning Attorney About Whole Life Insurance

A probate attorney can help you decide whether to buy whole life insurance or another type of insurance that pays for long-term care.  Contact The Law Office of Laurie R. Chane in Dade City, Florida to discuss your case.

Source:

cbsnews.com/news/should-seniors-buy-whole-life-insurance/