Let me cut to the chase, in today’s world life insurance is an integral part of the financial planning for seniors too. Age is just a number, and it is no way going to change your mindset of ensuring that your loved ones are taken care of financially.
Life insurance over 70 is not a luxury anymore, and it will be one of the most important investments that you can ever do for your family. There is nothing worse you can do for your family than to leave them with a massive debt and unpaid expenses. Not having life insurance will further exacerbate the difficult situation if something unexpected occurs to you.
However, there is a common thought among seniors over 70 that they no longer need a life insurance policy, but nothing could be further from the truth. In some cases the senior might feel that the policy they have is getting more expensive. Today there are numerous options for seniors looking out for affordable life insurance. Therefore, prior to looking out for an affordable life insurance, first the seniors should have a clear picture of all their needs and specific requirements.
Why Seniors Need Life Insurance
Some of the important reasons why seniors over 70 need life insurance are
- The proceeds can help the surviving spouse and family to meet recurring expenses like rent and mortgage. It also will help them meet other living expenses.
- To meet the End-of-life expense like funeral and burial costs.
- College fund for grandchildren.
- Donating funds for a charity that is close to your heart.
- Setting up a trust or a fund for a loved one.
- It can also be used to paying estate taxes, which is levied on ‘taxable estate’ at death when it is transferred to a loved one.
Types of Life Insurance
The two primary types of life insurance are term and permanent. Term insurance is the basic form of coverage with relatively lower premium costs. It offers death benefits or short term debt obligations, if the insured passes away within the time period. However, there will not be any cash value or investment component appreciation.
On the other hand, permanent life insurance provides a significant cash value build-up in addition to death benefits. In many cases these funds can be prematurely withdrawn during emergencies. While the premium of a whole life insurance is high, it offers several other benefits.
Which Type of Life Insurance is Right for Seniors over 70?
Before answering this it is important to assess the length and the amount of the coverage you need. It is also important to know how the results turn up in the medical exam, urine and blood tests prior to buying a policy.