It can be an uncomfortable topic to bring up, but it’s important nonetheless: what is going to happen to your family when you’re no longer around? If you are now starting to consider the needs of your family, think about life insurance. We know that once, long ago, life insurance was seen as an unnecessary expense, but now it is viewed as a practical choice for anyone wishing to care for their family after they’re gone.
Why do seniors buy life insurance?
Seniors purchase life insurance for a variety of reasons. For some, their previous policy has just expired and it’s time for a new one. For others, their retirement means that their previous employer no longer provides life insurance. A second life insurance policy can always help provide more coverage, especially if you have children or grandchildren you want to help as much as possible after you’re gone. Life insurance is a wonderful investment because the money is payable immediately and it’s usually tax-free. This means that your loved ones and beneficiaries can receive the full amount with little difficulty.
How can life insurance payouts be used?
Unfortunately, without a life insurance policy, your beneficiaries might need to liquidate their assets or borrow money in order to pay off your debt or funeral costs. However, with life insurance, many beneficiaries choose to cover the funeral costs, any remaining medical bills, inheritance taxes, daily living expenses, and even college tuition. This money can be extremely helpful in all areas of life, especially when handling your final costs and expenses.
What types of life insurance are available?
Life insurance is available in many different sized packages you can choose from to meet your needs. However, in general, there are certain types you can choose before you go into the details of how much you’ll be paying for your premium.
Term Life Insurance
Any seniors who want to have protection for a limited number of years may want to choose a term life insurance policy. These are less expensive than other policies, especially if you are in good health. Since seniors are beginning to live longer and healthier lives, it’s actually quite common for people in their sixties to purchase a 20-year-term life insurance policy.
Whole Life Insurance
While whole life insurance usually costs a little more than term life insurance, the benefits are numerous. These policies last for the rest of your life, so you are guaranteed coverage. Also, part of the premium you pay gets invested, as this may allow you to earn even more money for your beneficiaries.
Guaranteed Life Insurance
Guaranteed life insurance for seniors means that you probably won’t have to undergo a physical exam. This makes it a good choice if you have any health concerns that might get in the way of a good premium. However, your beneficiaries may only receive the full amount of your death benefit if the policy is in place for a set number of years before you pass away. It’s usually two-to-three years.
Cost of Life Insurance for Seniors
Being older typically means paying a higher premium because insurance companies have to take a risk in order to insure you. To be honest, the seniors who do not choose life insurance usually do so because they cannot afford it. However, competitive pricing and good coverage is available, and talking to a financial advisor can help you make a decision that aligns with your budget. Contact Kennedy Financial & Insurance Services Inc. today to learn how we may be able to help you insure your family. We look forward to working with you!