Life Annuities Or Life Insurance? What Should Seniors Buy?

Choosing life annuities or life insurance has always been a tough decision for a senior.  There are many appealing senior life insurance policies, including term life insurance over 50.  Both products, life insurance and life annuity, have different advantages and shortages and before deciding what should buy, you must do a thoroughly analysis.

insurance-over-65Searching for online quotes and talking with professional life insurance brokers are 2 methods that make sure you will make the right choice.

Life annuities are an insurance product that features a regular payout, usually monthly, until the death of the annuitant.  They are great tools to obtain funds during retirement and it is usually the first option for a person. The only problem is that life annuities pay off only if purchased in time.  People that are still working usually sign in for life annuities.

It is better to start saving money for annuities at the age of 30 or 40 years old, otherwise it would be too late. A person at the age of 50 or 55 years has little time until retirement and as a result, there are fewer options of getting this product.  Companies will have nothing to gain if they ensure a person that has only 3 or 4 years until retirement. So, life annuities are not quite the best option.

Life insurance policies for seniors are more versatile and more variable. There are many policies types and different riders you can attach to them. And they can be multipurpose.  The main purpose of life insurance is not to return money during retirement, but to save money that would be later used for different purposes.

After several years of continuous payments, some options become available for the insured. Probably one of the most important is borrowing against policy, an option that allows the insured to take a part of the invested money and used at its own free will.  Life insurance policies can also have a sick benefits rider, a waiver of premiums rider, accidental death rider and even a return of premiums rider. There are many other options available and we suggest reading more.

Visit our website for more details and free online quotes.