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Should I By Life Insurance For Seniors?
Article 11 of 12 in Is Life Insurance Right For Me?
You have reached your golden years and have attained the status of senior citizen. Because you still want to make sure that your family has no financial hardships after you are gone, you will need to make sure your end of life planning is in order. Life insurance for persons 60 and over is still obtainable and can be a good option to plan for your family's financial future. It may cost a little more, but depending on your health you can still get senior life insurance that will satisfy the needs of your family.
As a senior citizen, you probably won't need the same level of life insurance you had when you were younger. Life insurance can serve many purposes, but one of the primary purposes is assuring that your loved ones will be able to survive without your income if you die. By age 65, your children are probably grown and self-sufficient so your life insurance needs have most likely changed substantially (unless you have a sick spouse or a disabled dependent). If you have a policy with rates that don't increase, you might want to keep it. If you don't have life insurance, but have decided that you want it, there are several types available to senior citizens.
TIP: Before you get a senior life insurance plan, make sure your financial needs are not addressed by other savings or investment accounts. Ask a life insurance agent if you need life insurance before you make a purchase.
Types of Life Insurance for Seniors
- Burial or Final Expenses insurance is frequently marketed to seniors. These policies are considered Whole Life insurance, which means your policy does not expire as long as you pay the premiums, and it's issued without a medical examination. Burial or Final Expenses policies typically offer enough money to cover funeral expenses and pay off a few debts (between $3,000 and $30,000). Your premium will not increase and policies are often available to seniors well into their 70s and 80s.
- Guaranteed coverage makes sense if you've been denied life insurance for health reasons. The catch to these policies is that they feature a two-year, graded, or limited benefit period. During this time, you only get a payout if your death is accidental. If you die from an illness, the company refunds your premium plus interest.
- Term insurance will expire even if you make all of your premium payments once the term of your policy has lapsed. The advantage of term insurance is that the premiums are lower than whole life. Although you can often get coverage until age 90, this type of insurance is medically underwritten. Premium payments are based on age, health, sex, smoking status, and your driving record. So if your health is poor, you may not qualify for term coverage (or it could be quite expensive). Also keep in mind that once your term policy expires, you'll be older and could be ill or disabled and may not be able to get a new one.
Life Insurance for Retirement
Because the need for life insurance tends to decline with age, it may be small or non existent for many people after retirement. However life insurance has many uses, and as such there are some exceptions including:
- Estate Transfer: Life insurance policies can accumulate and be paid out tax free, so they can become a common way to transfer the value of your estate to your heirs when you die.
- Businesses: If you still operate, or are a partner, in a side business then you still have someone or some business that relies on you financially. You can get business life insurance to make sure that your financial obligations are met after you pass.
- Remaining Dependents: You might still have dependents that require income or financial resources after your death. Also, there may be a need to have money to pay off final expenses, which could include funeral expenses, car loans, mortgages and other bills.
Circumstances like these often present special needs for life insurance that should be analyzed on an individual basis, and you still may be better served investing your money elsewhere. Contacting a life insurance agent or a financial advisor to help you make the right decision on how much and what type of policy to buy.
If you need to purchase senior life insurance, choose a company that will not over charge you in premium and stand by paying the death benefit. It is important to Free Advice insurance company rating guide to find companies that are rated A or AA+. Once you have found the right policy, shop and compare life insurance quotes before making your selection. Click here to get started at the Free Advice life insurance quote center.
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