Critical Illness Plans Or Life Insurance? What Is Best For Seniors?

Critical illness plans provide a benefit if you are diagnosed with a terminal disease like a heart condition, cancer while life insurance provides a benefit to your beneficiaries after you die. Which is the best policy for you, as a senior?

parkinson's disease 2The answer depends on what you want mostly: do you need insurance to cover funeral costs, or do you need some extra income during retirement, in case things turn out for the worst?

Critical illness plans

Critical illness plans are an insurance policy that pays out a benefit if you are diagnose with a terminal disease. Terminal diseases include: heart attack, diabetes, cancer, and stroke. Most plans have a survival period which means that you have to survive for a predetermined period of time after you are diagnosed with the disease. The survival period is, in most cases, 14 days.

Life insurance plans

Life insurance plans provide a death benefit after you die. The payout goes to your beneficiaries. Life insurance is a product designed to financially secure your loved ones. However, many seniors buy it as insurance to cover funeral costs. Life insurance agencies will payout, regardless of how you die, so even if you die of a disease, your beneficiaries will receive the benefit.

What should a senior buy?

The advantage of critical illness insurance plans is that it provides financial support in case you are diagnosed with a terminal illness. Terminal illnesses like strokes and heart attacks are common among seniors, so getting this type of coverage may be a good idea. However, keep in mind that you can die of other causes and the insurance agency will not provide a benefit to your family. Also, if you have a healthy lifestyle and are active, chances of getting terminally ill are low, so you may actually pay premiums for nothing.

Life insurance on the other hand, does not provide any benefits to the insured. Instead, it is a way of providing for your loved ones. With life insurance you can financially secure your family, pay mortgage loans or funeral taxes. The benefit is paid out regardless of how you die (the only exception is if you commit suicide in the first year of the policy).

If you are looking for life insurance, our website can help you, not by selling a policy, but by helping you buy one. Visit us and compare the best life insurance quotes!