Why Buy Key Man Life Insurance? As the senior citizen’s primary caregiver it can be difficult to understand just how much insurance a senior citizen should be purchasing, but key man life insurance is often the right choice for someone that is aging or is experiencing some type of health problem.
Key men are the single individuals who are responsible for the financial needs of their families, and who have an extremely high level of responsibility. For a man to qualify for this type of life insurance he must have the financial ability to cover the funeral costs of their spouse and children as well as all of their children’s college tuition costs. If the person were to pass away at any time during his or her working career, then there would be no one to pay the life insurance premiums of his or her dependents, as well as for funeral expenses. This is why most key men are self-employed.
Key man insurance policies are designed for people who may become unable to work and rely on others for all their needs, but who are still capable of contributing financially to their family and to themselves. If the policyholder should pass away they would be responsible for paying the premiums of his or her dependents, as well as for funeral expenses, as well as for college tuition of their children, and the cost of living expenses, and the cost of a home and any other possessions owned by the deceased.
There are a few different ways that a key man life insurance policy can be purchased as illustrated on this link. The premiums that a company pays for key man life insurance depend on the amount of the individual’s age, current medical history, and other factors, as well as the age and term of the policy itself. Most policies will cover you for one year at a time, but sometimes even up to five years, but the terms are usually very specific with what can be covered and what cannot. You should discuss these terms with your agent when purchasing your policy.
If the company offers key man life insurance policies, it is not uncommon for the life insurance company to charge an initial premium as high as double of what you pay for it on your own policy. This is because if you have the good fortune to live to be over the age of 60, then you could be paying several times what you would for a single person policy, and you would only pay as much as you would on a policy that covers two people at the same age. and you still qualify. Even for individuals who are just beginning to get married, you could end up paying quite a bit more on the premiums.
With a key man life insurance policy, you may be paying less for your insurance, but in the long run you may be paying too much money for it. Therefore, you must be careful about the premium that you are paying, and if you do happen to take out a policy on a young, healthy, or otherwise healthy individual who happens to be nearing retirement, then there is nothing wrong with taking out a policy for him or her as well, because it is the best option that you have. Visit https://en.wikipedia.org/wiki/Life_insurance to get more details on this topic.