Whether you are getting close to retirement age or have already retired, you may feel you do not need life insurance anymore. You may find that you have fewer financial responsibilities now that you have raised your kids, paid off your debt, and are set to live on your retirement savings. However, it can still provide a safety net to your family when they need it most. It’s a good idea to have an understanding of the types of coverage available to you.
Understanding Your Options
There are many types of insurance out there, so you may wonder what to do if you discover you need another type of policy at a later stage. One option is to take a life settlement. This can be a more financially sound option than simply surrendering it for the cash value. If you wonder how much your policy is worth, you can use an online life settlement calculator from Mason Finance to see your value in seconds.
Term Coverage
If you still need to cover larger expenses for a few more years, you may go with term life. It will cover you for a certain amount of time, whether that’s 5, 10, or 20 years. It is more affordable, making it an excellent fit, no matter your stage of life. Term insurance often offers more coverage than other options that do not require a medical exam. If you outlive your policy you can extend but if you pass away while you are under the policy, you can receive a fairly large death benefit to help your beneficiaries out.
Permanent Life Insurance
If you are in good health and would like protection from larger expenses, consider permanent life insurance. You can find a range of varieties, such as universal and whole life. It does tend to cost more than term, but it is guaranteed to payout when you pass away. If you are wondering what you can do with protection, permanent gives you many options. This is a good option if it is important to you to be able to cover your funeral expenses and avoid being a burden on your family. It is also a good option if you have a disabled child who will need funds to live on. One of the benefits of this type of policy is its cash value component. You can borrow against the funds or use the policy as a loan collateral. Just know that the cash value takes a few years to build before you can use it.
Guaranteed Issue Coverage
If you have certain health conditions or are older, you still have options for coverage. A guaranteed issue insurance policy is a great option if you are uncertain whether you would pass the medical exam or meet the health requirements. You will not be turned down, no matter your status. The rates tend to be higher and the coverage amounts lower than with other insurance types, but this may still be the best bet for someone whose age has stopped them from taking advantage of other options. Just because you were previously denied a policy does not mean you can’t still protect your loved ones.