Term life insurance covers a specific period of time and is considered a temporary form of insurance. It typically provides the most affordable coverage for the specified time, and thus is a great solution for those looking to protect their assets and families while unable to commit to a whole life insurance policy.
EQuick News reported that term life insurance can be renewed with higher premiums, and people over 85 years old can often qualify for these policies in many states. According to the news source, other features for this type of policy include adjustable premiums and conversion.
Term life insurance policyholders are able to adjust their premiums in accordance with changes in expenses, investment earnings and mortality experience. Up to the age of 75, policies remain convertible, allowing policyholders to trade their term life insurance policy in for other permanent policies, the news source reported.
Term life insurance policies offer senior citizens greater flexibility in their financial planning. Some policies do not require seniors to receive a physical examination before qualifying, while others can be purchased with premiums that never increase. While paying into a life insurance policy, holders are building up tax-deferred cash that they can later borrower against as well.