If you’re unsure as to whether you should extend your term insurance policy, there are several key points of discussion to help you make a decision.
Term insurance rates have decreased dramatically over the last two decades. If you’re in your 50s or early 60s and still in good health, premiums for a new policy can still be obtained. Some policies even have living benefits. This will help you to apply your death benefit early. Especially if you have a chronic illness.
Even better, they can serve to double as long-term insurance. If you have health issues, you may want to convert your current plan to a more permanent one. Let’s talk about some other things you should consider.
1) Buy a New Term Policy
By dropping significantly, you can now better compare rates online. Since medical technology has gotten better over the years, people have better life spans. You might be able to get a new policy based on this statistic.
Many insurance companies offer chronic-illness riders. They may pay out only for certain illnesses like cancer, but these policies may reduce the death benefit on a dollar-per-dollar basis.
2) Buy a new permanent policy
If you need life insurance for an undecided period of time, you may want permanent insurance. Since you don’t know what you’re facing, this type of plan is important for both you and your family.
But if you’re pretty healthy, you should be able to get a much better deal instead of converting your current long-term plan. This will get you more comprehensive coverage at a much better rate.
3) Long-term-care benefits
Many insurers now have policies that will combine life insurance as well as long-term-care coverage. These new policies typically give you access to a portion of your death benefit early in case you need long-term care.
You can tap the benefits if you have to get help with two out of six activities related to daily living (like bathing, eating, or toileting). If you have a brain impairment, this can also provide you with long-term coverage.
It is important that you get the right plan for your current health needs. By choosing one that relates best to you, you can expect lower payments and better protection for your family in the event that you pass.
May careful attention to the details contained within each policy. This will allow you get better customized care and work to avoid potential pitfalls.
If you are currently paying out a lot for your policy, look into getting it updated. There are many sources available that will point you in the right direction so that you are getting the best coverage possible.
You want your family to be protected. They shouldn’t have to worry about taking on a bunch of expenses. By getting the right kind of plan for your needs, they can rest easy knowing they are in good hands with a policy that takes the load of them.