Medicare Supplement Life Insurance Plan

Life Insurance?

Determine your need for life insurance. Your need for life insurance depends on the circumstances of your life. If you have a spouse and/or family that are dependent on your income or you expect your estate to incur income, capital gains, or estate taxes that your beneficiaries will owe when you die, then buying a life insurance policy may be a good choice for you.

There are different types of life insurance policies available. There are many different types of products available for different needs. Whole Life and Term are the two most common types of life insurance available .

Whole life Insurance provides coverage for an individual's whole life, rather than a specified term. A savings component, called cash value or loan value, builds over time and can be used for wealth accumulation. Whole life is the most basic form of cash value life insurance. The insurer essentially makes all of the decisions regarding the policy. Regular premiums both pay insurance costs and cause equity to accrue in a savings account. A fixed death benefit is paid to the beneficiary along with the balance of the savings account.

The premiums are fixed throughout the life of the policy even though the breakdown between insurance and savings swings toward the insurance over time. Management fees also eat up a portion of the premiums. The insurance company will invest money primarily in fixed-income securities, meaning that the savings investment will be subject to interest rate and inflation risk.

Term life insurance for seniors is relatively easy. You can buy term insurance that stops after 10 or 20 years, or that can be continued until age 70 or later. You can choose for your premium to increase each year (annual renewal term) or to be the same amount for a fixed number of years.

Most term policies offer both a current payment schedule and a maximum rate for each year. With some policies, the company is reserving its right to increase premiums if company costs increase. With others, the issue is your health. At certain “re-entry” ages you may have to prove your good health in order to keep the lower premium. Most long term policies are convertible to permanent ones without evidence of good health.

Compare the various life insurance companies. There are many companies selling life insurance for different prices. The life insurance policy that is most "cheap" on term life insurance is usually the best on term life insurance. Let us shop for you. We represent hundreds of life insurance companies that want your business. Let the life insurance company offer you a really good price.

A financially sound company with high ratings are a dime a dozen in life insurance. But pay attention as to how premiums will change with age or on term renewal periods. A trusted insurance agent can do much of this work for you and provide you with personalized comparisons based on your needs and desires, as well as answer the questions that you will have.

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