You may find the idea amusing; however, life Insurance for senior citizens is a brilliant way to ensure your family has no expenses to bear at the time of the funeral.
Besides that, there is a guarantee your family won’t have to burden clearing debts when you are not around. This type of insurance is also known as whole life insurance and has become a popular choice rather amongst responsible senior citizens.
Most companies do not allow general life insurance policies to the seniors given the age factor, and hence a senior life insurance policy could provide a great sense of possible security despite the old age.
Why Might Senior Life Insurance be a Good Investment?
In most cases, a senior citizen might have taken care of all related financial matters. However, in other scenarios where there might be someone from the family dependent on the senior member or maybe the home loan is still pending, senior life insurance policies prove to be a smarter investment choice.
This could be a gift to your family, so they don’t have to pay the huge expenses incurred at the time of the funeral. Such Life insurance policies ensure a smooth transition without having anyone bear the burden you once imagined yourself bearing.
Why Should You Keep an Eye on the Premium Offered?
Similar to the stock market, premiums for life insurance policies vary. They are different from person to person based on factors such as age, health, and lifestyle.
Most likely, the premium amount for a senior citizen in good health would always be higher than a younger citizen considering people in their old age possess a greater risk of death.
However, there would be some relief in the premium amount if a senior citizen is in better health comparatively. This is the reason we recommend opting for a life insurance policy when you are younger and healthier. You would have a less premium amount to pay.
Having said, most companies offer affordable premiums and let you take advantage of the associated benefits, maybe not yourself, but your family would definitely be benefitted.
Are There Any Qualifying Criteria One Needs to Consider?
Most insurance policies have criteria one need to fulfill in order to qualify to avail of the benefits of an insurance policy. Similarly, there are some levels of qualification required to purchase a suitable plan for senior life insurance.
As mentioned earlier, senior life insurance is whole life insurance, and you could certainly choose either standard life insurance or a guaranteed acceptance.
While in a standard life insurance policy, you would be required to answer medical questions to gather information related to paramedical, when opting for guaranteed life insurance, you would be asked even lesser questions.
Consider a policy with paramedical writing if you think you are healthy and possess no previous medical records. By doing so, one could save on their premium amount you might have to pay less!
You should ideally be carefully comparing the offered premiums by different insurance companies. There are some who offer relief in premium amounts and ensures stress-free life coverage.
Certain criteria changes from a company to a company, the location often plays an important role in deciding on the acceptable premium amount. Hence, we recommend considering options and not limiting yourself to one insurance company.
Benefits of Senior Life Insurance
Additional Support to Your Spouse
While most couples take vows to keep each other happy in a marriage, senior life insurance could prove to be extraordinary support to the spouse who has survived.
As per the data available, on average, it costs from $7000 to $12,000 to arrange for a funeral. You might want to take that burden off! Hence, we recommend opting for a senior life insurance plan for a stress- free transition for your spouse and family.
Let Your Family Not Bear the Burden of Pending Loans
There might be chances of you failing to pay off the debts while you are healthy and alive. In such cases, if under some unfortunate circumstances, you happen to die prior to clearing your debts, you would most certainly be bothering your family with the financial stress.
Hence, we encourage you to consider senior life insurance option if you are uncertain about your near future financial stability. It is always a good idea to hope for the best to happen while preparing you for the worst.
Benefits of Non-Taxable Withdrawals
Senior life insurance is a type of whole life insurance. Hence, similar to general scenarios where you are eligible to withdraw a certain amount of money from your whole life insurance, senior life insurance holds an equal cash value.
This is mostly the accumulated sum of premium paid and is, in fact non-taxable upon withdrawal. Another convincing reason to opt for a senior life insurance plan!
It Is for Your Family
Just like any other type of life insurance, even this one is for your family more than it is for you. Amidst the mourning, they would be relieved to know you have got your funeral expenses covered, or your children won’t have to spend their lives clearing your debts even while you are not around.
Investing in senior life insurance is a win-win situation, and we highly recommend utilizing your money to ensure your family’s betterment.
Anyone who has dependents should consider buying life insurance. Senior life insurance is suitable for responsible senior citizens who would like their family not to be burdened with any future expenses that are otherwise not related to them.
While most senior citizens have had term life insurance, which they chose to drop for fair reasons, there is provided an equal opportunity to the citizens who are too old to get a general term or permanent life insurance policy.
It is recommended to reach out to a broker in case of confusion. The experts tend to know better and also guide you in the best possible manner.