Find out why life insurance for seniors can be a good investment in the future of your family
Life insurance is one of those funny things that no one wants to talk about, but it is one of the surest ways for us to leave something behind for our loved ones when we pass. There is, however, a lot of confusion about life insurance.
The different types of policies can seem overwhelming, but once you break them down, those differences help people get the life insurance that is the best fit for them at any stage in life. Life insurance for seniors often goes overlooked, though. The golden years of life are, in reality, an ideal time to have a life insurance policy.
How to Choose Life Insurance for Seniors
The best way to purchase life insurance and to keep your premium at a minimum is to start early. But even if you don't get life insurance when you're 25, there are still plenty of ways to keep your premium down. Beyond that, the key to choosing the right plan is to decide what you want to cover.
For instance, term life insurance gives you coverage for a set length of time—usually 10, 15, 20, or 30 years. A single premium whole life insurance policy offers tax benefits and a good return on your investment.
Pekin Insurance has Pathway® life insurance, which you can use to cover funeral expenses without shifting that burden onto your family. Whole life insurance may have a cash value and provides death benefits to your beneficiaries.
If you only want a policy to cover funeral expenses, then a Pathway® policy may be your best bet. If you prefer a policy to enhance your retirement income, a whole life policy that you can borrow against would be a better option.
To determine which policy is right for you, it's best to talk to your insurance agent or a financial advisor. Your age, health, financial status, and debt, among other things, all impact the choice.
What Are the Benefits of Life Insurance for Seniors
The most obvious benefit of life insurance for seniors is the benefits passed on to your beneficiaries. Leaving your family or loved ones in a secure financial position is one of the greatest gifts you can leave behind. There are, however, substantial benefits to life insurance that you may not know about.
Pekin Insurance offers an accelerated death benefit on certain policies that allows you to withdraw up to $250,000 in the event of a terminal illness. Likewise, you may be able to borrow against permanent insurance policies to cover long-term care expenses, such as a home health care aide or adult day care.
For seniors still holding a mortgage, a life insurance policy can ensure that your spouse or loved ones can live comfortably without the worry of a mortgage or rent payments.
Even if you don't pre-plan a funeral, the payout from a life insurance policy can help cover funeral expenses. According to the National Funeral Directors Association, the average cost of a funeral is about $7,000. That's not an expense you want to leave to your loved ones.
For some seniors, the tax benefits of a life insurance policy can be a way to pass on an inheritance without the burden of an inheritance tax.
With so many grandchildren and adult children living with seniors, a life insurance policy is one way to provide for your loved ones after you are gone.
Some insurance policies double as an investment, with significant returns. The interest, dividends, and capital gains on a policy are often tax-deferred.
If there is an organization or cause that you care deeply about, you can name them as the beneficiary on your insurance policy. This is a good way to continue philanthropic work even beyond your lifetime.
Peace of mind
Above all, there is one priceless benefit to life insurance for seniors: it can help provide peace of mind for your loved ones. End of life care, medical expenses, and funeral expenses add up quickly. That's a lot of stress and worry for those who love you. A life insurance policy can allay those concerns. Knowing that there is a financial safety net, your loved ones can focus on doing what they need to do to take care of you, your legacy, and themselves.
No matter your age, discuss your life insurance needs with a Pekin Insurance agent today. Provide some certainties to your future, so you can enjoy today.