The thought of life insurance can yield quite the internal debate. The very nature of considering it is a reminder of our own mortality and better left for down the road some years or decades.
Many people push the conversation to an age where they start to worry they’ve waited too long, won’t qualify, or there just plain aren’t any options left.
Let’s take a deeper dive into the best life insurance options for the senior set and learn if any of those worries are justified or if now is the time engage.
Whether you’re 60, 70, or 80+, the most common reasons older adults need life insurance can be summed up as:
• Covering Debt
You want to leave enough behind to cover debts such as mortgage, automobile and credit card debt.
• Providing for Dependents
In the event of your death, your dependents will be provided for.
• Leaving a Legacy
Whether you want to leave a significant amount to your spouse, children or a charity, a death benefit can be a smart way to leave a financial legacy.
• Taking Care of Funeral Expenses
No one really wants to think about it. Yet, funeral costs can add up, averaging 10-25K. A death benefit payout can cover funeral costs. This is not only practical; it also can reduce financial stress for your surviving family.
Hey, no problem. Not judging here. Life insurance is for most people, a dreaded topic. If you’ve waited ‘til now, you are not alone. Many people know that life insurance is an option…but who wants to deal with it?
In the heat of earlier decades, thinking about life insurance may have occurred to you. But it was just a fleeting thought.
Now, at this moment in life, it shows up.
So, if you’ve been busy beating yourself up, it’s time to say, “Enough!” Enough with investing in guilt, regret, or recrimination.
Here you are. You still may choose to get life insurance. Or not. Taking time to look at your options is a good idea. There’s no time like the present.
Simply, the older you get the more expensive life insurance coverage becomes. If you’re thinking about getting a policy…the sooner, the better.
There are two main types of life insurance that experts advise for seniors. Term Life Insurance and Guaranteed Universal Life.
These are generally recommended because they offer more affordable pricing, flexibility to select payout amounts, ability to add riders, and guaranteed death benefit amounts.
This tends to have less expensive insurance premiums, especially before age 75. Having this insurance can help to secure bank loans. Additionally, you can add riders that act as living benefits, if you become critically or terminally ill.
This type of insurance can provide peace of mind, for the event if one spouse dies prematurely. It can be used to cover mortgage costs, debt or lost wages.
You don’t accumulate a cash value. Your premium insures only a death benefit payment amount.
Additionally, the policy has an end-date, meaning you might outlive your policy. If you do, you may be able to renew. But policy renewal comes at higher costs with shorter time frames.
As the name says, the premiums never go up and you have a guaranteed Death Benefit payment amount. This offers options for setting the age limit at 120, radically reducing the risk of outliving your policy. Plus, you can set death benefits of $25,000 to $10 million or more.
For seniors through age 80, you can apply without a medical exam. It is possible to purchase GUL through age 85, with a medical exam. You can add riders, allowing you to use a portion of benefits to cover health costs in the event of terminal illness.
You don’t accumulate cash value. Your premium payment insures a death benefit payment amount.
The set payment schedule carries penalties for late payment.
Check out your local resources to find trustworthy help. You may find a directory at your local Agency on Aging (AAA). The AAA assists seniors in understanding and maximizing the benefits of their insurance.
Additionally, you can look for referrals from The Society of Financial Service Professionals. If you have close relationships with friends or family in your area, ask for personal referrals.
Most experts advise getting quotes from several providers to find the best price for the best life insurance.
The #1 Take Away: The Sooner The Better.
If you’ve been considering life insurance, don’t wait.
By getting life insurance at your current age, you have more options than if you wait ‘til later. You’ll have more choices, may find less cost effective options, and may be able to get insurance without a medical exam. If you choose to get life insurance, you can start enjoying the peace of mind that this financial instrument provides.