RSSDo Seniors Need Life Insurance?
Like so many questions, this one is much to general. Just as I cannot tell you that there is one right senior health plan for everybody, I also cannot answer this question yes or no without learning more. But what I can do is give you some reasons that an older person may benefit from coverage. If some of the reasons apply to you, or to an older person that you help care for, it may be time to start shopping for a policy.
Estate Transfers
Many people want to pass money on to heirs, and a life insurance policy can be a good way to accomplish this goal. Most of the time the proceeds from the death benefit will not be taxed. And since most of us just pay a monthly premium, it can be an affordable way to plan for an estate transfer.
So if your goal is leaving money to your spouse or kids after you pass away, consider using a policy.
Other Inheritance Issue
Here is a very common situation. Consider the example of a man who owns a small law firm he wants to leave to his daughter who is also a lawyer. He also has two sons, but they decided to become teachers, so they have no real interest in running a law firm. But the man wants to be fair to his sons, and he knows the law firm is his largest asset.
So he purchases a life insurance policy which names the two sons. This policy actually buys them out of any interest in the law firm. The law firm owner has used his coverage in order to distribute his assets fairly to all children.
Business Insurance
One common reasons that older people look for coverage is because they need it for their company. Many executives and business owners are older people. Financing sources may insist that their loans are protected with a policy. In addition, key man insurance can insure that a company can recover financially in case it loses a valuable member of the team. So companies, large and small, are one major purchaser of policies for older people.
Final Expense
Probably the most common type of senior life we see advertised is a smaller face value whole life policy. In the business this is called a final expense or burial policy. They usually have death benefits from a couple thousand dollars to twenty-five thousand dollars. They are meant to help the insured person’s family pay for final expenses. These could be things like funerals, medical bills, debts, and travel.
If an older person has little money saved and does not want to push the burden of final expenses on to a spouse or children, a small policy can provide security. Sometimes older people buy these for themselves, but many times the grown children will pay the premium for their parents. It may be difficult to bring up this topic, but once it is done, it is often a relief to the whole family.
Do you need a policy? Your own budget, savings, and unique situation must be considered. For some people, it would be better to put aside a few dollars every month to plan for final expenses. But many families find that it is easier to just pay a premium.
Learn more about the reasons why seniors need life insurance
If you are an older person, and have a life insurance you do not need, consider learning more about seniors life insurance settlements