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10 Reasons Why Seniors Need Life Insurance

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life insurance todayAs a senior, you may think life insurance is unnecessary. After all, your age and health conditions raise premiums. And, honestly, why now? Life insurance replaces income should you pass away, and you are retired. The mortgage is paid off. And, your kids are holding their own. Is a life insurance policy accessible and necessary at this time in your life?

Before you reason yourself out of purchasing a policy, contemplate the idea a bit further. And you might be surprised to discover the reasons for getting or maintaining a life insurance policy this late in the game. Consider some compelling reasons why you need life insurance today.

1. Pay Funeral Expenses

Funerals fall among the top five life expenses. According to Bankrate, the average funeral runs between $7,000 and $10,000. The cost continues to skyrocket. Without a plan to cover these costs, your family is left with large-scale bills and the worry that goes along with them. And a life insurance payout removes the burden from your family by supplying the money they need.

2. Cover Current Income

Retirement remains an impossibility for some seniors. Life circumstances or the passion for a career keep them in the workforce. If you continue to work, even parttime, life insurance offers a means of protecting your savings and replacing your income upon your death. Any named beneficiaries benefit from these monies. And this means one less worry in their time of grief.

3. Bear Loan Debt

If you are a retiree with significant outstanding loans, a life insurance policy may be in order. These payouts remove the burden of this debt from surviving family members. Carefully calculating the amount of coverage needed to eliminate the debt prevents you from over-insuring. A policy which outlasts the loans is not wise.

4. Cover Personal Debt

Funeral plans only cover costs associated with a funeral. Life insurance policies contain no restrictions on how the money is spent. Therefore, family members may use the funds for other purposes. Medical bills, credit card balances or estate taxes fall among the possibilities. Plus, the liquidity provides immediate resources for the family without the need to sell other assets.

5. Guard Your Business

Life insurance policies protect your business partners and employees in the event of your death. The funds left to beneficiaries may be used to offset the loss of your role in the business, cover interim expenses or buy out your interests. With these funds, the company you poured your life into is guarded through your death.

6. Protect a Disabled Child

The ongoing medical care and support of disabled children add up. If you are in this situation, likely you are aware of the astronomical expenses today and into your child’s future. Life insurance offers a means for you to provide for the medical and living costs associated with your child’s disability after you are gone.

7. Give Family a Boost

Life insurance policies enable you to provide for your family’s financial needs into the future. Paying for a college education for your children, eliminating the mortgage payment for a spouse, providing for a loved one’s travel or comfortable retirement are possibilities. Also, the cash value of the policy also supplements Social Security benefits to offer beneficiaries additional income.

8. Maximize Inheritance

As a tax-free estate planning option, life insurance policies maximize your inheritance. And the same principle applies if leaving your wealth to a charitable organization. Furthermore, irrevocable life insurance trusts (ILIT) are not subject to estate taxation and are protected from creditors. Also, these monies are especially useful for those needing financial protection.

9. Leave a Legacy

For many seniors, children and grandchildren bring meaning to life. And spending time with and finances on these loved ones prove a joy. Life insurance policies offer a way for these seniors to make a tax-free gift for major milestones after their deaths, without impacting their current savings. So given for birthdays, graduations and weddings, these gifts bless loved ones.

10. Provide Peace of Mind

The world proves an unstable place. Purchasing a life insurance plan, even as a senior, offers peace of mind for you and your loved ones. The financial provision does not relieve grief. However, it stops the worry of family members as to their future financial survival. And, you can do nothing about this after your death. But, you can address it today.

Of course, a life insurance policy should not strain your current finances. Providing for loved ones after one’s death comes in many shapes and sizes. Furthermore, talking with a qualified insurance agent reveals your options and helps you identify the plan which fits your unique situation.

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Category: Life Insurance