Most Americans need life insurance, although it is probably one of the most overlooked types of insurance available, and senior citizens are no exception. However, there are many different and good reasons that a senior should have life insurance. Here are some of the most common:
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:
- Combination products
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 charity
Life insurance is a great way to donate to a church or a favorite 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.
You Can Have Life Insurance, Even As a Senior
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.
Susan Polk Insurance is here to help. We’ve been providing San Luis Obispo with expert life insurance service since 1988. To find out more about life insurance or for questions about your existing policy, contact us today and schedule a FREE consultation.