Life insurance is designed to take care of your loved ones in the event of your death. After retirement age, kids are usually grown and moved out, home mortgages are typically paid, and people are usually more financially secure. In many cases, people think about reducing or eliminating life insurance coverage once they reach retirement age.
On the other hand, there may be situations where you have dependents, medical bills, or financial considerations that require life insurance. However, due to the nature of life insurance policies, many feel that it’s too late to purchase coverage once they reach a certain age. Typically life insurance requirements change after retirement, but there are still options and policies for most seniors.
If you find that you’re in a position where you need senior plan life insurance, options are available. While life insurance policies come with higher premiums as you age, policies are offered even if you’re not in good health. No matter if you want to provide money for your funeral costs, cover outstanding debts, or leave a sum for your loved ones, senior life insurance can provide for those needs. Let’s take a look at some tips for choosing a senior insurance plan.
Consider your needs
Once many seniors reach a certain age, they either no longer have dependents or have enough savings to care for dependents and family members. The biggest consideration will be if there are dependents who still rely on their income. Some seniors still have loved ones who are reliant on their income or financially injured if they died. In this case, it might make sense to consider senior life insurance.
Another consideration for senior life insurance is your financial situation. If you have joint credit with someone, they’ll be responsible for keeping up with the payments if you pass away. Additionally, if you end up requiring end-of-life care, you could have thousands of dollars in medical bills left unpaid after your death. Other considerations that you might factor in are funeral expenses. Today the average funeral can cost upwards of $10,000 with services and full burial. If you feel that this would be a hardship on your family, it might be worth having a life insurance policy that could cover the cost of your final expenses.
Consider your policy
Deciding on life insurance will require some shopping around to consider coverage amounts, premiums, and types of policies. Term life insurance will be the most affordable option for seniors looking for smaller coverage amounts. The older you are when you purchase the policy, however, the higher your premiums will be. Also, policyholders over 60 will usually be limited to terms of 10 or 20 years. On the other hand, Whole Life insurance will provide permanent coverage and payout regardless of when you pass away. Whole life insurance will have some of the highest premiums for seniors as policies get significantly more expensive with age.
Other options for seniors include guaranteed life insurance and burial expense insurance. Guaranteed life insurance is a permanent policy that doesn’t require a medical exam and can provide coverage amounts up to $100,00. The caveat, however, is that premiums will be higher since there is no consideration of health issues, and there is usually a two-year waiting period before full benefit amounts are paid. A final expense policy will cover the cost of funeral arrangements and can be paid directly to the funeral home. These policies ensure that your loved ones will not have to worry about the cost of your funeral.
As you reach a certain age, you might find that you no longer need life insurance. However, when you consider your situation and loved ones, you may determine that you need coverage through your senior years. With some research, based on your situation and financial plan, you can find coverage that will be appropriate for your needs no matter how old you are.