What Is Term Life Insurance?
Term life insurance is a life insurance policy with a set ending date. It’s often an affordable source of life insurance for seniors since the policy has an end date chosen by the subscriber. The death penalty is only paid if the policyholder dies within the term they select. Term life policies typically come in 10-, 15-, 20-, and 30-year terms. Each term life insurance provider has its own criteria and set terms.
Does Term Life Insurance Affect Medicare Benefits?
Having a term life insurance policy doesn’t have an effect on a person’s eligibility to receive Medicare benefits nor does having a term life insurance policy impact the premiums an individual pays for Medicare.
Term life insurance is often primarily viewed as a death benefit that can help a senior’s family pay funeral expenses and cover estate taxes. Medicare doesn’t cover either of these costs.
Term Life Insurance Is an Affordable Option for Aging Seniors
Term life insurance is an affordable option for aging seniors who don’t want to pay the price of whole life policies. Seniors living on fixed incomes often forgo life insurance altogether, but term life insurance policies can be a reasonable option. Since term policies expire, life insurance companies are sometimes willing to approve term life insurance policies for seniors deemed ineligible for whole life policies. Term life insurance may be the only way to obtain life insurance for seniors with complex medical problems.
Term life insurance is also simple to understand. If the premiums are paid for the length of the policy, the beneficiaries receive the benefit if the covered individual dies during the term of the policy. Some term life policies also bypass a medical exam requirement depending on the length of the term and the applicant’s age.
Every insurance provider has its own application and approval process. Before applying for a term life policy, it may be wise for an individual to talk to a life insurance broker.
