Life insurance, in its various types and amounts, is generally considered to be advantageous for a wide swath of adults. In return for a minimal cost to a provider each month (cheaper if paid annually), policyholders can secure a financial safety net for their loved ones after they have died. Depending on the policy type, they may even be able to access it for cash support while alive.
While the benefits of life insurance are generally well-known, there is one demographic that is often left out of the equation: seniors. For these older adults, life insurance is generally considered not to be “worth it” when comparing the cost to coverage. In short: the coverage that can be secured may be minimal while the cost could be higher (if still relatively cheap) than a younger person would pay.
But this doesn’t mean that all seniors should skip life insurance – or that they don’t need it. In fact, there are times when a life insurance policy could be beneficial for a senior to have, if only for these select reasons.
If you’re in the market for life insurance then start by getting a free online price quote now so you know exactly what it would cost you.
3 times seniors may need life insurance
Life insurance can traditionally help fill a financial gap – or supplement existing savings. With that in mind, here are three times seniors may need life insurance.
When they need to cover end-of-life expenses
Life insurance is often thought of as coming in big six-and-seven-figure amounts. But if you’re a senior who needs to cover end-of-life expenses like a funeral and burial, you won’t need anything close to that amount. And since you’ll be looking for a conservative policy (think under $20,000) you can likely secure it for a reasonable cost.
Think practically and realistically. If you don’t want to burden loved ones with these sorts of expenses – but don’t have enough savings or home equity to cover them on your own – then you probably need life insurance to make up the difference
Get a free online price estimate now to see how much it would cost you.
When they have debt that will outlive them
This is not applicable to every individual, so it’s best to fully understand your personal circumstances before getting life insurance for this reason (financial advisers can help).
However, if you’re concerned that your family members will get saddled with any existing debt you currently have (mortgages, credit cards, student and personal loans) then a life insurance policy may be needed. Life insurance in the amount of what you owe – or what you expect to owe in the future – could prove to be a welcome resource to cover expenses that otherwise would have been left to loved ones.
Again – not all seniors may need life insurance for this. A mortgage with a balance, for example, can still be valuable (minus the outstanding amount). But if you have real debt – and are concerned about someone else getting stuck with a bill – then you may need the help a life insurance policy can provide.
When they want to leave an inheritance
Are you a senior with minimal savings and home equity? Do you still want to leave an inheritance, even if it’s a small one, to your relatives? If you answered yes to both of those questions then you may benefit from taking out a life insurance policy.
The traditional reason many people get life insurance – to offer economic support to beneficiaries in the event of their death – is still one of the best reasons to secure a policy.
Sure, a policy provided to a senior is unlikely to be robust. And it will be more expensive than if it was secured when you were younger. But if you want – and feel a need – to leave a nest egg for your loved ones, then life insurance may be a good alternative to pursue.
The bottom line
As with all personal financial products and services, the benefits are relative to the individual’s personal circumstances and goals. For seniors who may be on a budget with limited income potential, this is particularly true. But if you’re looking for funds to cover end-of-life expenses and outstanding debt, or simply want a way to leave an inheritance, life insurance may be worth pursuing.
Start by exploring some top life insurance providers here or by using the table below.
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