There may be more benefits to life insurance for older adults than most people realize. Here are the facts on 7 of those benefits.
"You are never too old to set another goal or to dream a new dream." - C.S. Lewis
What exactly "old" or "older" means is subject to debate. What isn't up for debate is the fact that as we get older, our lives change. We trade in some of our spritely dexterity for experience. We gain a few muscle pains, but we lose some of our insecurities. Our hopes change direction from what we want to achieve to what we hope to leave behind for younger generations.
It's the leaving behind part, however, that many of us don't want to talk about, yet we need to. There are many ways you can leave a legacy for your family and children, and life insurance for older adults is one guaranteed way to leave them with some security for their own future.
Am I too old for life insurance?
Chances are you are not too old for life insurance. For older adults, in fact, life insurance can be especially helpful. For instance, you can borrow against some whole life insurance policies to cover the expenses of long-term care.
Pekin Insurance offers a term life insurance policy with coverage until the age of 95. The specifics are best discussed directly with an insurance agent as there are different options and policies. However, you may be able to get life insurance when you're 65, 75, and even 85 years old.
The catch here is that insurance premiums for new policies increase with age. Your best bet to keep costs low is to purchase a policy at a young age. Nonetheless, life insurance still has some big benefits for older adults.
The benefits of life insurance for older adults
1. Life insurance can cover funeral expenses
Let's just tackle the elephant in the room, shall we? Barring a mass extinction by an invasion of extraterrestrials bent on carrying out the plot of Independence Day, we are all going to pass on, leaving our family and friends here amongst the living. When we do, they'll be the ones left covering funeral expenses.
The payout from your life insurance policy can help cover those expenses. Some people even purchase a specific funeral preplanning policy so their loved ones don't have to handle the details.
2. Life insurance is guaranteed cash
What will you leave for your spouse, partner, or children? With a life insurance policy, you can leave them with cash. In some cases, moving other investments into a whole life policy can increase your guaranteed payout, and the benefits are generally paid out tax-free.
3. Leave a legacy
Do you have a favorite charity? Did you know you can name that charity as a beneficiary on your insurance policy? Most charitable organizations can do a lot with even a little cash influx. Your insurance policy, no matter how big or small, could have an enormous impact on people's lives after you are gone.
4. Supplement your retirement funds
That guaranteed cash part of life insurance for older adults truly comes to the fore on this one. Your policy can double as an investment, providing you with cash value to supplement your retirement and social security funds.
5. Cover the cost of long-term care
There's no way around the fact that long-term care is expensive. But it's comforting to know the care is there if you need it. Whole life insurance policies have a cash value that you can use to cover these expenses. While that does reduce the value of your overall policy, it may be well worth it to live out your days in comfort.
6. Tax benefits
The cash value of your policy can grow, tax-free, for decades. Your beneficiaries do not have to pay taxes on the distribution of death benefits. Furthermore, if you withdraw funds from your policy to supplement your retirement, those funds may be taxed at a low rate, assuming you have minimal income.
7. It may be more affordable than you think
While technically not a benefit, it is worth noting that life insurance could be more affordable than you may believe. It is true that the cost of a policy increases with age; however, your cable bill may be more expensive than a term life insurance policy.
There is no one-size-fits-all when it comes to life insurance for older adults, young adults, or anyone else. Get in touch with your local Pekin Insurance agent to get the right policy for you.
What benefits would you add to this? Share your thoughts in the comments below.