When planning for the future, a significant number of people usually buy term life insurance policy that expires by the time they hit 60 or 70 years. Most of them hope that by that time, their children will be fully grown, their mortgage fully paid and they will have accumulated enough assets to ensure their final expenses/obligations will be taken care of.
Unfortunately, life is unpredictable, and things don’t always work according to your plan. It is not surprising to meet senior citizens who are still struggling with debts and family members who still depend on them for survival. This is the primary reason why we have life/death insurance for seniors.
Even if everything works according to your plan and you don’t have any dependents or debts by the time you hit 60, you still need to plan for your final expenses to ensure your family members are not burdened when you pass on.
Therefore, before you dismiss the idea of purchasing life/death insurance for seniors, contemplate the idea a bit further. Here are some of the top reasons why you should consider life insurance as a senior.
1. People Are Living Longer
According to the Social Security Administration, the current average life expectancy for men is about 84 and nearly 87 for women. This represents an increase of over 20 years since the 1920s and 1930s. While increased life expectancy is a great benefit of modern medicine, it can put a strain on your retirement savings, Medicare, pension funds, and social security funds.
As more families expand outside of traditional molds, seniors are now raising grandchildren or taking care of other family members well into retirement age. The unexpected costs can only complicate things further.
Therefore, if you are worried that your pension fund and retirement savings may not bridge the financial gap should you live beyond a certain age, life insurance can offer you the much-needed security or back up.
2. Leaving a Legacy
Life insurance also offers you a great way to be remembered. If you have a permanent life insurance policy which you purchased many years ago, there is a chance that the cash component will have grown significantly by the time you become old.
Your beneficiary will automatically benefit from the additional income. In fact, your tax-free financial gift will be a significant part of your loved one’s life, and your presence will be felt throughout their entire life. So, if you have no assets to leave behind as your legacy, stick to that life insurance policy.
3. Pay Funeral Expenses
According to statistics from the National Funeral Directors Association, the average cost of a funeral in 2019 was $7,640. If you include the cost of a vault, the figure rises to $9,135. The unfortunate thing is that the cost continues to skyrocket.
Without a proper plan to cover these costs, your family will be left with huge bills plus the pain and worry that come along with them. So, if you have worked so hard to ensure your loved ones don’t suffer once you are gone, you need to ensure you take care of your final expenses while you are still alive.
If you don’t have sufficient savings that will help your loved ones pay for your final expenses without putting a strain on their finances, then it is critical to obtain a life insurance policy so that they will have the money needed to give you a decent sendoff.
4. Medical Debt
You are probably aware of the fact that medical costs have increased in recent times and are causing a significant financial strain on American families. In fact, it is reported that approximately 62 percent of all bankruptcies filed in the US are as a result of medical debt, and seniors are not immune to illnesses.
The biggest threat to a senior’s health and finances is a medical crisis. Severe sickness or the need for long-term care can have a significant impact on their finances.
Affordable life/death insurance for seniors can help provide some form of insulation against unexpected medical debt. Some permanent life insurance policies also feature accelerated benefits if the policy holder develops terminal illnesses.
Some of these plans allow you to access up to 90% of the policy’s face value through living benefits. You can cash out the money as a lump sum or in installments depending on the overall cost of your medical bills.
5. Peace of Mind
Lastly, a life/ death insurance for seniors provides you and your loved ones with the much-needed peace of mind knowing that financial aid will be available when needed most. Everyone will be at peace, knowing that you have a reliable financial back up in the form of a life insurance policy.
We Are Here For You!
At Insurance Master, we understand the fact that obtaining a life insurance policy as a senior can be quite challenging because of your age and health issues.
However, our licensed insurance agents are here to help you find an affordable life insurance policy designed to protect you and your loved ones. Talk to us today and let us help provide the much-needed peace of mind for your loved ones.