Do Seniors Need Life Insurance Coverage?

Do Seniors Need Life Insurance Coverage?

It is hard to say for sure if a whole group of people needs life insurance. Usually, life coverage is bought by parents and spouses to financially secure their family. Because many people continue to have dependents even after they retire, the insurance business stretched its marketing target so that it includes seniors.Types of Life Insurance for SeniorsFinal Expenses it’s a policy which provides permanent coverage. This means that the policy will not expire as long as you continue to pay the premiums. A medical examination is not required. Because you skip the underwriting process, the costs will be higher and the coverage limited to 30,000$. This can be enough though, to cover your funeral expenses and other small debts.Term insurance, unlike final expenses covers the insured for a limited period, but at cheaper premium. The rates are based on your age, sex, weight, height and your overall health. Because it requires a medical examination, seniors with serious health problems may not qualify.Guaranteed issue is a policy sold by some agencies. It means that you can get coverage regardless of your health state. The coverage is limited though, and the premiums are expensive Also, the policy features a two-year limited benefit period, which means that during this time the policy will pay the full coverage only if you die in an accident. Otherwise, the policy will only return the total cost of premiums.When should seniors get life coverage?Life insurance makes sense if you have dependents. Many people support their children well into their 60’s. Also, women tend to live longer, so your death may leave your wife without financial support.A policy can be used to pay for your own funeral. Funeral expenses are quite high as they cost an average $10,000. In many cases, a final expenses policy can be cost efficient, especially if you buy bit late in your life.Inheritance taxes are very high and they can eat up a big part of your wealth. A life insurance however, pays a benefit which is tax-free. If you want to leave a tax-free inheritance to your children and spouse, a policy can be a good idea!Life insurance for seniors works very well in certain situations. However, if you don’t have relatives who depend on your income and if you can’t afford paying the premiums, life coverage is a useless expense for a retired person.