Seniors Life Insurance Vs Variable Annuities!

The economy is starting to rise again from its ashes, but nevertheless, the effects of the recent economic boom can still be visible today. Saving money through banks does not seem as attractive as it used to be and people tend now to spend their money rather than saving it.  Not saving money is really not recommended, since it will deprive your loved ones of the hope of coping with your demise.

picture-of-one-happy-senior-couple-202x300Seniors usually have to decide between senior life insurance and variable life annuities. Both saving plans can be quite effective, if you know what options to include.

Variable annuities are also insurance products, but they present specific features. This type of contract has two parts: an accumulation phase and a payout phase.  Under a variable annuity, the insurer agrees to make periodic payments to you, immediately or after a specified date. Typically, seniors choose to be paid after retirement.  The insurer guarantees a minimum payment amount.  The rest of the payment will be made based on the performance of some investment.

A variable annuity comes with a range of investment options. Your account will be divided in some subaccounts, where the money will be placed for several investments. Usually these investments are bonds, mutual funds and other similar products. At the end of the accumulation phase, you will be paid with the minimum amount plus the money collected from investments.

No matter how good the variable annuities may look, they still have flows. You will get nothing more than the minimum amount of money if your investments are not that profitable. In the end, you will get insufficient funds.  Life insurance for seniors are engineered to give financial protection and to secure a decent living for the dependents, after the policyholder dies.

Although they are used mostly for getting a decent death benefit, life insurance can provide benefits while the policyholder is still alive. They can help you pay medical care or to borrow you with cash.

Read more about life insurance for seniors. Our website provides free online life insurance quotes. Visit our website!