Wheeling, IL (PressExposure) April 30, 2010 -- AccuQuote, a leader in providing term life insurance quotes to people across the United States, reveals three things older Americans should know about life insurance.
"Many Americans are struggling financially due to the current economic condition, whether the result is a loss in their savings, investments or home values," says Byron Udell, founder and CEO of AccuQuote. "As a result, it's even more important for older Americans on fixed incomes to find ways to plan for and save for crucial financial products, like their life insurance."
In particular, AccuQuote reveals the following three facts that older American's should know about life insurance.
- Life insurance premiums can rise swiftly and unexpectedly later in life - Term life insurance premiums increase significantly for older folks because of the additional health risks involved. "Higher rates can be avoided by converting your existing term life insurance policy to a permanent one," says Udell. "With permanent life insurance, your premiums remain level for the rest of your life and the death benefit is guaranteed." Term conversion usually needs to be completed no later than a certain age, depending on a life insurance company's terms and conditions. This service can be done over the phone by calling a licensed life insurance agent, like the ones at AccuQuote.
- Cash surrender fees can be substantial - As retirees on a fixed income become even more pinched for cash in this economy, they are looking for hidden money. As a result, some may consider exercising their policy's cash surrender option. If this is an option they are considering, they should be aware that they may be asked to pay a surrender fee for accessing the cash value tied to their permanent life insurance policy. These fees vary by life insurance company, but they can be substantial.
- The need for life insurance may not end - There's always a use for life insurance, especially in today's economy. "Before giving up your life insurance policy because you don't think you need it anymore, consider all of your future needs," says Udell. "You may not have anyone who is financially dependent on you anymore, but life insurance can be used to pay for things such as long-term care and final expenses, including outstanding debts and funeral costs."
"There's one important thing to keep in mind; never cancel an existing life insurance policy until a new one is in force, or you're 100 percent certain that the life insurance is unnecessary," says Udell.