It’s never too late to plan for your future. Even in your senior years, you can still make sure that your spouse and the family that you will be leaving behind will not be left handling your debts and continuing to live without your financial support. Life insurance for seniors protects your family from getting into financial trouble and may help them continue to earn income even after you are gone.
Contrary to popular belief that you can only get insured during your prime, insurance companies are now making available life insurance that are especially designed for the needs of seniors and elderly. Life insurance policies for seniors are customized to fit the unique needs of seniors and can include provision of funds to cover for legal, medical, and funeral expenses in your passing. Life insurance for seniors also helps your family get by during your loss until the time that they can financially stand on their own.
Benefits of life insurance for seniors
Aside from the continuation of income, having life insurance for seniors has numerous benefits as shown below:
- Your loss will definitely cause financial stress on the family that you will leave behind. Life insurance for seniors can help cover the immediate expenses of your death and help pay off any of the debts that you have left that you do not want to be covered by your spouse’s retirement savings or your family’s estate.
- Social security and other similar programs do not offer benefits for immediate expenses and life insurance for seniors helps bridge this gap and provides the financial assistance that your family needs while waiting for your social security benefits to come in.
- Investing in a life insurance for seniors will give you peace of mind knowing that you were able to provide financial security for your spouse and your family after your unexpected demise.
Types of life insurance for seniors
Life insurance for seniors also takes into consideration your age, gender, and current health condition when determining your insurance premiums and coverage. Life insurance for seniors is generally categorized into 2 types as shown below:
- Whole life insurance policies are life insurance for seniors that pay out the sum mentioned in your insurance contract to the beneficiaries that you have identified after your death. It is very common for whole life insurance to have an investment component included in the contract that is received on top of the insurance coverage. The insurance premiums for this type of insurance are generally the same during the entire term of the policy. This makes for a steady growth of cash value that you can opt to withdraw or loan out as you wish.
- Term life insurance covers or insures you just for a specific term or period, unlike whole life insurance that covers you until your death. This type of life insurance for seniors will help support your family financially in the event of your death within a certain period. Term life insurance does not build equity like whole life insurance, but just pays out the sum agreed upon in the contract if your death falls within the pre-determined period in the policy. Some insurance companies provide renewal options for term life insurance that may avail in case your term life insurance will end soon and you feel that you would still want continued coverage.