The design of the senior life insurance has had an important change to improve in the current years. Senior parents life policies are permanent policies that vary in ages up to 90 years. Many life insurance for seniors providers now sell mainly term and whole life policies. The senior life policies now have an objective premium that has a guarantee, as long as the premiums are paid, the policy will not expire. The newest form of elderly life insurance is the indexed cheap life policy that has a yield linked to the S & P Index, the Russell Index and the Dow Jones. In a down market, it usually has no profits, but there are no losses in the policy either. If the market is up, you can have a profit, but it is limited. If the index market takes a loss of 30%, then it has what we call the floor, which is 0, which means it has no loss but no gain. Some insurers will continue to contribute up to 3% of additional profit to your policy even in a low market. If the market rises 30%, then you can share the profit, but you have a cap so you can only get 6% of the profit and this will depend on the capitalization rate and the participation rate. The capitalization rate helps the insurer because they are assuming the risk that if the market goes down, the insured will not suffer and if the market rises, the insured can share a percentage of the profits. The indexed cheap life insurance for seniors over 80 policies also have cash values that can be borrowed. The best way to see the difference in cash values is to have your insurance agent show you illustrations so you can see what fits your investment profile. The no medical exam life insurance policy index has a design that is beneficial to the consumer and the insurer and can be a viable tool in their total investments.
