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Joint Term Life Insurance For Seniors, Spouses And Business Partners

By Mike Heuer

Just because someone grows older does not mean he or she cannot benefit from term life insurance policies. In many cases, term life insurance for seniors can help ensure a home equity loan or reverse mortgage can be paid off in case the insured party might die before the debt is paid off.

Many people now live well into their 80s and beyond, making the need for term life insurance later in life a necessity for many who might take out a loan or other credit instrument to pay bills or boost their retirement income temporarily. In such cases, many life insurers will underwrite a term life plan of between 10 years and 30 years, but the premiums will be as much as three times higher than for younger people who are more likely to outlive the terms for which plans are sold.

Because the odds of someone older dying during the period for which coverage is in effect, premiums also will be higher than for younger people, but not to the extent they cannot be affordable for elderly people who need coverage. When buying term life coverage while elderly, the shorter the term the lower the monthly premiums will be. Some insurers will offer plans that start with an affordable rate that often times will rise over the years, and others might offer annual renewable term life products, which have premiums that rise each year as well. But finding level term life plans is not impossible.

Ways to keep the rates on term life for seniors include maintaining a good credit rating, owning a home outright instead of owing cash on it, have generally healthful lifestyles and seeing doctors on a regular basis to stay abreast of any changes in health condition, choosing only the amount of term life insurance necessary and shopping around for the best deal possible from reputable insurers.

Another effective tool for protecting seniors is a joint term life insurance plan. A joint term life insurance policy can help spouses ensure the loss of one of them won’t cripple family finances and create even greater hardships when one spouse dies suddenly.

Another instance where a joint term life plan can help a great deal is when involved in a business partnership. Business partners can obtain a joint term life insurance plan to ensure the enterprise remains viable and survives the loss of a critical business partner due to a sudden death. As with joint term life plans for married people, the policy would pay a death benefit if one of the insured business partners dies, and then the policy would be finished.

As might be expected, joint term life policies cost a bit more than term life plans for one person. But the rates are not significantly higher, just marginally so. Underwriting methods also are similar for joint term life plans for business partners and spouses. Some joint term life insurance plans also might have options for guaranteed renewal, in which case the premium will go up but there are no additional requirements for health exams or other factors.