What You Should Know About Life Insurance for Seniors
People of all ages can benefit from purchasing a life insurance policy. A common misconception is that seniors either cannot or should not buy life insurance. However, the truth is that many seniors stand to benefit from life insurance. Take just a moment to learn more about how to buy life insurance for seniors.
Do Seniors Need Life Insurance?
Life insurance, though often not geared to seniors, is still a recommended benefit for them. Life insurance often serves as a source of income for a family the breadwinner dies. However, not all seniors have dependents. Other seniors have dependents, but also money to take care of them in the case of their death. In other words, if you have a need for a significant financial legacy for your survivors, then life insurance might be for you.
Another reason a senior may want to buy a life insurance policy is if they have unpaid debt. For example, if you and someone else have co-signed for a loan, the co-signer will be responsible for paying off the debt if you die. Life insurance can help pay off this debt. It might apply to mortgages, medical debt, even funeral and burial expenses.
A common reason that seniors buy life insurance is to cover their funeral arrangements. In the United States, the average funeral costs $7,000 to $12,000. Life insurance can help partially or fully cover the costs of a funeral arrangement.
Life insurance can cover the medical expenses associated with end-of-life care. For example, there is hospice care, which can amount to tens of thousands of dollars. If these medical costs are not covered by insurance, then the loved ones of the deceased might have to pay the bill.
Finally, life insurance is also a good option for seniors who want to leave their children or grandchildren an inheritance.
Term Life Insurance for Seniors
A common issue that seniors run into when it comes to life insurance is affordability. Term life insurance is often still an affordable option for seniors who want coverage.
The premium depends primarily on your age when you apply for the life insurance policy. In general, older people will have higher monthly premiums. When you purchase a term policy, you will need to select a term length. The most common options for term length for seniors are 10-year and 20-year terms.
Seniors have many options when it comes to purchasing life insurance. For more information about what you should know about life insurance for seniors, don’t hesitate to contact us.