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Life insurance for seniors is available in various kinds, with policies being divided into two major categories: temporary and permanent life insurance. Temporary life insurance, as the name says, only provides insurance coverage for a specific and fixed duration, while permanent life insurance gives the insured individual coverage for the rest of his or her life. These two main categories may be further divided into sub-categories, which include universal life insurance, whole life insurance, and term life insurance.

How Life Insurance Works

Life insurance policies were mainly designed to give a designated heir or beneficiary monetary compensation in the event the insured individual passes on. The beneficiary may be the child, spouse, or dependent of the insured person, or any other person or entity, any of whom will receive the insurance payout in a lump sum. The recipient of the benefits may use the money as he or she wishes, although the money is traditionally used to pay for funeral expenses and the settlement of any financial obligations the insured individual may have overlooked. If the beneficiary has no means of livelihood, the insurance benefits may also provide income for a number of years.

Whole Life and Universal Life Insurance

Whole life insurance and universal life insurance are policy sub-categories based on the terms, worth, and coverage duration of these plans. Here is more information on these two sub-classes of life insurance:

Whole life insurance policies last for the entire lifetime of the insured individual, and will be able to provide the necessary coverage as long as he or she pays the premiums, which will stay at a set rate for the duration of the plan. When it comes to initial expenses, this kind of insurance policy is usually expensive, although the higher costs may be seen as the price of guaranteed fixed premiums, and the certainty of the availability of benefits to any beneficiaries once the insured person passes on.

Universal life insurance is similar to whole life insurance in that these are active if the premiums are made regularly. In contrast, the premiums of a universal life policy can fluctuate, depending on the conditions of the market. In addition, initial expenses tend to be cheaper than whole life policies. The downside is that a possible rise in premium rates may make it hard for the policy holder to keep this type of life insurance for seniors in place in comparison to whole life insurance.

About the Author:

Katherine Smith is an author who specializes in financial topics concerning seniors. Puritan Financial Group provides better life insurance for seniors. For more information on how Puritan Financial Group can help you, please visit our website at http://www.puritanlife.com/products/life/life_insurance_for_seniors.

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