Insurance expert Gary P. Cubeta from Insurance for Final Expense recommends going through Globe Life insurance reviews and reviews of other similar schemes to get a comprehensive understanding of what each policy offers. 

Most companies sell several attractive life insurance policies. However, it’s critical to carefully evaluate the policy and look at reviews before choosing a life insurance policy for your senior parent, relative, or friend.

Choose Between Term Life Policies and Whole Life Policies

Term insurance policies offer coverage for a specific number of years, whereas pure life insurance or whole life insurance policies don’t expire for as long as you continue to pay premiums. Whole life insurance policies may be more appropriate for seniors since the insurance plan is not taken for investment purposes. 

Experts like Gary P.Cubeta of Insurance for Final Expense feel that reviews like Globe Life insurance reviews show every minor difference between different kinds of policies. Term life policies allow seniors to pay fixed premium amounts till the expiry period. The cost of term life insurance is generally lower than the cost of whole life insurance policies.

Term life insurance policies allow “death benefits” to beneficiaries if the senior passes away during the policy term. Whole life insurance policies also offer a “cash value” in addition to death benefits. These policies also don’t expire after a fixed term.

Whole life insurance policies are more beneficial for seniors looking for more than just insurance coverage for their beneficiaries. There are several options like guaranteed issue whole life insurance policies and simplified whole life insurance policies to choose from.

Coverage

Before you choose a life insurance policy for seniors, it’s essential to understand the coverage limits of the policies you’ve shortlisted. The coverage may vary based on the type of policy you choose, the senior’s health conditions, and their specific insurance needs and requirements.

Most whole life and term life insurance policies offer comprehensive insurance coverage. The coverage amount and limit are dependent on the insurance plan you choose. Compare different policies and choose the policy that offers the most effective coverage.

Cost of the Policy

Insurance specialist Gary P. Cubeta from Insurance for Final Expense recommends going through reviews like Globe Life insurance reviews to find out details about the costs of different insurance policies and ascertain if any hidden fees are present. 

The cost of insurance usually depends on the term of the policy and the coverage limit. Whole life insurance policies for seniors may be more expensive than standard life insurance policies. The companies may also consider the age and gender of the senior.

Policies for seniors with pre-existing health conditions are bound to be more expensive. The insurance company may study the severity of the health condition afflicting the senior to decide the insurance cost. Insurance providers may be reluctant to provide life insurance coverage if the senior has a health or medical condition that could bring about his or her death within two years. 

Terms and Conditions of the Policy

Analyze the terms and conditions of different policies to choose a compatible policy for your senior relative or friend. Go through the terms and details of various schemes available in the market.

The services of an insurance specialist can be of crucial importance in understanding what each different term means. Your insurance consultant understands financial terminologies and market terms. The agent or consultant can help you avoid paying more for clauses and terms you don’t need.

Medical Examinations

Insurance companies who provide life insurance coverage for seniors will insist on medical examinations for seniors who apply for life insurance coverage. If the senior has a pre-existing condition, you can choose a whole life policy specifically designed for people with pre-existing conditions.

Seniors will not have to undergo critical medical examinations or checkups to qualify for these policies. However, policies for people with pre-existing conditions typically come with shorter terms and lower coverage limits. The cost of the policy may seem higher when compared with the relative cost of standard whole life insurance policies.

There are many life insurance policy options available in the insurance market. It’s essential to review different policies before finalizing a policy for your senior relative or friend. Working with an expert insurance consultant or agent will minimize the risk of falling for life insurance scams and frauds.

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The post How to Choose the Right Life Insurance Policy for Seniors Over 70 appeared first on TechReviewsCorner.

What is MUDRA Loan?

MUDRA is an acronym for Micro Units Development and Refinance Agency. This loan scheme was launched by the Government of India that is specifically for individuals and owners of small businesses and MSMEs. The MUDRA loan has:

• Shishu
• Kishore
• Tarun

These different schemes offer different loan amount that can be taken by a small business owner or individual.

Features of MUDRA Loan

• Collateral: Like that of a small business loan, a MUDRA loan under any of the schemes (Shishu, Tarun, Kishore) do not have any collateral associated with it. MUDRA loans are catered towards funding the basis for businessmen to improve and build on their income-generating activities.
• Documents: Being a government-issued scheme, the MUDRA loan requires much more detailed documents for its approval. Businesses need to have all certificates and registrations along with detailed proofs for both the company as a separate entity and the applicant.
• Schemes: MUDRA loan can be availed under three different schemes that entail what types of business can apply for the MUDRA loan and the maximum amount of loan that can be applied for.

Shishu: This loan scheme is for new and smaller businesses that are just starting out. The max loan amount for this scheme is Rs.50000.

Tarun: This scheme is for businesses that have already established themselves as a powerhouse. The Tarun loan scheme is for large businesses who need extra funding to run their daily operation and promotion like partnering with other enterprises and branding. The loan amount ranges from Rs.500001 to Rs.10 lakh.

Kishore: The Kishore loan scheme is targeted towards businesses and enterprises looking to expand their production and service through the purchase of equipment and machinery and other assets like raw materials. The loan amount for this scheme ranges from Rs.50,001 to Rs.5 lakh.

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Eligibility Criteria for MUDRA Loan

The eligibility for the MUDRA loan scheme an individual applicant are as follows:

• Age: the minimum age for the applicant is 18 years. The maximum is for application is 65 years.
• Credit: the business for which the MUDRA loan is being availed must have a credit of Rs.10 lakh or lower.
• Non-farming Sector: The MUDRA loan covers offers funding to a wide range of business sectors. Even non-farming businesses with income generation like service, trading, and manufacturing sectors are eligible for the loan.
• Agriculture Sector: Businesses that are allied with the agriculture sector as of April 1^St, 2016 can also apply for the MUDRA loan.

Documents for MUDRA Loan Scheme

The documents required to avail a MURA loan are as follows:

• Proof of Identity
• Proof of residence
• Written business plan by the applicant
• KYC documents
• Filled application form for the MUDRA loan under the specified Scheme-Shishu, Kishore or Tarun
• Passport photos of the applicant
• Proof of income.
• Banks statement for at least the past 6 months
• Proof of being a part of an OBC (if applicable)
• Proof of business address

Business registration certificate and other licenses

What are Business Loans?

A business loan is a type of loan that is specifically catered towards meeting business needs. Such loans are the lifeblood of small businesses. A small company or organization and apply for such a business loan at any financial institution and upon being verified, can get the much-needed funding to carry out and boost their business operations.

Features of Business Loan

Business loans have always been the common go-to option for small businesses and enterprises for quick funding. This is because business loans are easily accessible to anyone, and business owners can get the money with relative ease.

• Collateral Free: Business loans are all collateral-free. This means that the business need not sacrifice or deposit any asset with the bank or lending party in exchange for the loan amount. This is especially beneficial for small and new businesses that have little assets that they can put up as loan security.
• Quick processing: Business loans tend to be short term loans that are free of any security deposit. This makes it much faster in processing the loan application. Even after verification of the loan application, the bank or lending institution can quickly process the loan amount and transfer the funds to the bank of the borrower within a few working days.
• Interest rates: Unlike other types of loans, business loans have a fixed rate of interest. This means that regardless of the tenure of the loan, the amount of interest charged will always stay the same during the entire tenure. This makes the calculation of EMI and repayment installments much easier and convenient for the borrowing party.
• Repayment options: Business loans often have a very flexible repayment schedule. Businesses that apply for such loans can choose to repay the loan in periodic installments. This can be in the form of Bi-weekly installments, monthly EMIs, or even quarterly payments as allowed by the lender.
• Documentation: Business loans need little in terms of documents. Banks, NBFCs, and other lending parties need only the basic documents to confirm the legality and authenticity of the business. If all the basic documents are in order, the loan application is approved without any further delay.

Also Read: What is Business Email Compromise (BEC)?

Eligibility criteria for Business Loan

Different financial institutions have different metrics for the eligibility criteria for a business loan. These criteria can differ depending on who the small business approaches for the business loan. The basic and most common eligibility factors are as follows:

• Age: The age of the applicant for the business loan should be between 21 and 65 years. Some lending organizations may have the minimum applicable age as 18 years.
• Business operation: To apply for a business loan, the company/business should have been operational for a period of at least 3 years. This ensures that the business has a long history and provides more trust to the lenders.
• Turnover: Most lenders have business turnover as their eligibility. Businesses should have a minimum of Rs.50 lakh as their annual business turnover. Along with that, the business should be making a minimum profit of Rs.2 lakh. The main reason for this criteria is that lenders may be assured that the business will be able to sustain itself and repay the loan amount without any complications.
• IT: Businesses applying for a loan are expected to provide their complete and filed Income Tax Returns for the past 3 years.
• Credit Score: Having a good credit score with the company bank is crucial for getting approved for a business loan quickly. A good credit score assures lenders that the business has a good reputation with banks and will honour the repayment of the loan on time. Having a credit score above 650 is good and is enough to get a small business loan from any financial institution.

Documents for Business Loan

Like the eligibility criteria, different lenders may require different documents to approve a small business loan:

• Bank account statement for the past 6 months
• Proof of residence
• Income Tax Returns for a minimum of the past 3 years.
• Any Proof of Identity.
• Proof of Business
• Proof of ownership of the business by the applicant
• KYC documents (if any)

MUDRA Loan vs Business Loan

Both business loans and MUDRA loans serve the core principle of providing funds for people and business owners to establish and build income-generation facilities.

The key difference between the two lies in their availability, details, and applicability.

Choosing a business loan or a MUDRA loan completely depends on the type of business one owns. Business loans are preferable for a large amount in short periods to get a boost to MSMEs and other small businesses. On the other hand, the MUDRA loan scheme will allow for any business sector to better establish their income generation.
When choosing whether to take a business loan or a MUDRA loan, it is crucial to weigh both options and see which scheme best suits the needs of the business.

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