“There are many different reasons that a senior may choose to have life insurance,” said San Luis Obispo life insurance provider Susan Polk.
Here are some of the most common reasons that a senior would choose to purchase life insurance:
• Paying for last expenses
Losing a loved one is hard enough, but consider that funeral costs and other death related costs could add up to thousands of dollars for the survivors. Life insurance
can cover these expenses.
• Paying for additional costs of long‐term care
When selecting a life insurance policy, there are options that you can choose that allow for long‐term care expenses to be paid for by the life insurance policy. Some options include:
You can purchase a life insurance/ long‐term care combination plan to assure that all of the benefits of the policy will be paid.
‐Accelerated death benefits
There are different types of accelerated death benefits that serve different purposes. Some life insurance policies include a feature that allows a tax‐free advance of benefits should you become terminally ill, have a life‐threatening diagnosis, need long term care or are confined to a nursing home. Sometimes policies require an extra premium for this feature.
• Equalizing monies left to heirs
You can use your life insurance policy to equalize inheritance. “For example, if one child is left an interest in a home or business, you might name other child(ren) as beneficiaries of a life policy to provide cash that would make it fair.”
• Making up for the loss of income (social security or pension) when one spouse dies
If you are dependent on funds from a spouse from income, social security or a pension, life insurance policies can help to make up for the loss of those funds should that spouse die.
• Leaving a legacy to a church or favorite charity
Life insurance is a great way to donate to a church or charity. You would simply designate that church or charity as the beneficiary of the policy.
• Helping put a grandchild through college
Donating funds through a life insurance policy towards a grandchild or other relative’s college cost is an effective way to support them without affecting their accessibility to financial aid.
Life insurance is a truly important facet in financial planning. Many seniors may think that they can no longer purchase a policy because of their age, and although there may be limitations, policies are still available for seniors regardless of their age.
For information about life insurance, call San Luis Obispo life insurance expert Susan Polktoday (805) 544‐6454.
Susan Polk Insurance
1443 Marsh St
San Luis Obispo, CA 93401