Should I still take out term life insurance when I’m over 50, will I still benefit from endowment insurance when I’m 60 – and which insurance is still worthwhile when I’m over 70? The good news is that there is a suitable provision for every age group.
Providing Life insurance for seniors
Which life insurance for which senior citizen?
Basically, there are two types of classic life insurance: term life insurance and endowment insurance.
For whom is an endowment life insurance suitable?
Endowment life insurance offers double protection: In the event of death, the agreed sum insured is paid out to the next of kin, leaving the surviving dependents secure.
And on the payout date, he or she can choose whether the money is to be paid out as a lump sum or as a lifelong annuity.
Which choice is best depends on plenty of factors? It’s best to ask our experts in the service area for advice on this.
However, the great combination of death benefit and endowment provision also comes at a price: premiums are naturally higher if you want to build up a tangible cushion in a short time.
Do you want to know more? Let us prepare a non-binding offer for you.
For whom is term life insurance worthwhile?
Term life insurance is also available for older people for significantly lower premiums than endowment insurance, for example.
However, it is only suitable for protecting surviving dependents: No capital is built up that is paid out at the end.
It is particularly useful if financial obligations have to be met, such as a loan for a house or apartment.
In the event of death, the surviving dependents are covered.
It also helps if the beneficiary has only built up small pension entitlements – if the policyholder dies before then, the beneficiary’s future is at least financially strengthened.
It is also ideal for unmarried couples who are not legally entitled to a widower’s or widow’s pension; they can cover each other.
A special feature is also the so-called “linked term life insurance”: Here, two partners take out a contract and thus save on premiums.
In this way, they provide each other with favorable coverage.
Men benefit, smokers pay more
For some years now, gender may no longer play a role in the calculation of insurance premiums – unisex rates apply.
This is good news for men who are interested in life insurance: Because statistically they have a lower life expectancy and benefit from even lower premiums.
However, the exact amount always depends on the health status of the individual insured.
All life insurers, therefore, ask what are known as “health questions” before the contract is concluded.
The rule here is: honesty is the best policy because anyone who provides false information here risks losing their insurance coverage.
Smoking is classified as particularly harmful and makes the insurance somewhat more expensive accordingly.
Unfortunately, those who have smoked within the last 10 years must expect surcharges.