Insurance companies base premiums on complex actuarial computations that calculate the risk factors and likelihood that benefits will be paid for each policy written.
Whole Vs. Term-It’s Not As Confusing As it Seems…
For whole life insurance policies, this risk calculation covers the entire remaining life of the individual; the younger you are when applying for coverage, the lower the risk factor assumed by the insurance company in writing the policy. Affordable Term life insurance policies, on the other hand, are written for a specific time period and consider only the risk of paying benefits for that period of time. Term life insurance is written for a term of between 1 and 30 years, with 5 and 10-year policies among the most commonly available. Since the risk assumed by the insurance company is smaller with term life insurance policies, this coverage is a favored form of life insurance for seniors who may not qualify for or be able to afford whole life policies. By obtaining a term life insurance quote from a number of different companies, you can ensure you’re get the best possible coverage at the best rates.
How Much is Enough? Your Options, Explained…
Another topic of concern is maintaining adequate health insurance. While Medicare provides coverage for many vital services, most experts recommend that older individuals also maintain supplemental insurance to cover the costs and copayments that Medicare does not cover. A number of companies offer specialized senior health insurance plans that serve as supplements to Medicare; the Medicare Advantage plans are a good example of supplemental insurance designed to work with existing Medicare coverage. You can reduce your required copayments, cover a portion of the cost of prescription drugs and cover the cost of longer stays in the hospital and skilled nursing care by maintaining these supplemental coverage plans. To learn more about Medicare, MedicareFAQ is a great resource.
Policies approved for inclusion as qualifying Medicare Advantage plans must provide substantially comparable coverage to the supplemental plans available directly from Medicare. This stipulation is intended to protect you from paying for plans that may not protect you financially in the event of a qualifying injury or illness. Some supplemental plans are expressly designed to cover the deductibles you must pay before benefits are available for certain health care needs.
By researching the available options and comparing rates and included services, you can determine the best life and health insurance policies for your specific needs. A thorough examination of likely future expenses, and the extent to which various policies cover those expenses can help you trust you’re getting the coverage you need at prices you can afford.