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When making careful financial considerations, time plays a key role. This is especially true for insurance protections, the benefits of which depend largely on when a policy is purchased. If you buy too early, you risk paying for insurance you can't use and don't need. But if you wait too long, you could end up missing out on vital financial protection. The timing must be right for each individual.
This importance takes on added weight for seniorssome of which may depend on a limited budget made up of retirement fund i National Insurance. With less money to work with, every insurance policy purchased must be valuable and profitable. And while life insurance is one of the best ways to protect your assets and loved ones in your absence, there are some smart moves to consider now.
with inflation still high and the prospect of interest rate Cuts are understandable right now, seniors should consider making select moves. Below, we'll break down three of the best ones to do.
See how much a solid life insurance policy can cost you here.
3 Smart Life Insurance Moves Seniors Should Be Making Now
Here are three strategic life insurance moves seniors should consider right now.
Reassess your needs
Unfortunately, inflation remains a problem for millions of Americans. Although it cools significantly from a peak decades in June 2022, has steadily increased again this year. This has kept the cost of many items high, and has left interest rates at their highest point in 23 years, keeping borrowing costs high as well.
With these issues in mind, it's important to reassess your financial needs. You've got sufficient coverage or do you need to increase your protections? Do you want to add beneficiaries or readjust who your money will go to? And will your current policy be enough to pay off any outstanding debts you eventually leave?
You may have purchased a policy in a very different economic climate than today. So, re-evaluate your needs and adjust your life insurance accordingly.
Start here today.
Consider term versus whole
Whole life and term insurance policies both offer unique benefits to policyholders. But if you are looking for the most profitable option (although without the opportunity to do so cash out on a policy while you live), then consider a term policy now. These policies are relatively inexpensive (depending on your applicant profile you could pay less than $100 a month for a six-figure coverage amount) and can still be adequately covered many of the items you would need.
If you don't already have a policy, but you know you'll need one now, a term policy may be your best option.
Think about your beneficiaries
If inflation and higher borrowing costs have negatively affected your financial situation, then it makes sense to consider how your beneficiaries have been affected as well. The amount of coverage you originally planned for your loved ones may be insufficient now that the cost of living has risen so significantly.
With interest rates on some loan products more than double what they were a few years ago, a six-figure sum may not go as far as you once hoped. It might be worth sitting down with your beneficiaries, then, to adjust your policy plans.
The bottom line
Life insurance provides vital financial protection for you and your loved ones. However, the benefits of a policy can easily be influenced by factors beyond your control. Faced with stubborn inflation and high loan costs, seniors should take a closer look at their current policies (or consider buying one now to help loved ones). They should also consider the advantages of term policies compared to whole policies and discuss their plans with beneficiaries to ensure that the policy they are paying for now will be valuable when accessed in the future.
Do you have more questions? Talk to a life insurance expert who can help you today.
