WHY DO SENIOR CITIZENS NEED LIFE INSURANCE?
Too many people assume that the golden years bring an end to responsibility. They picture grandma and grandpa sitting in their rocking chairs out on the porch, with grandma knitting and grandpa looking out into the sunset. This is a great scene, and it can be a wonderful image of retirement! However we all know that this picture of grandma and grandpa is hardly complete. American seniors are living longer, staying healthy, and being quite productive well into their traditional retirement years.
During the current economic downturn, the children and grandchildren are moving back in with the grandparents as they still need their support. The picture of grandma and grandpa attending school functions, keeping food on the table, or picking up the children when they are sick may be be more realistic.
Seniors Still Have Responsibilities!
Funeral and other expenses can cost thousands of dollars today. The average cost of a funeral in the US can cost $8,000.00 and many can cost much more. In addition to the cost of funerals, other bills may have to be paid. Medical bills can arrive in the mail for months on end after a loved one passes away. The person who passed away could leave debts that need to be settled and assets that need to be handled. Family members may need to travel; either for their jobs or they might need to take off work it is an incredible burden to have to come up with thousands of dollars to settle all of these bills during a very sad and stressful time.
Many seniors may want to transfer their wealth to the next generation. A tax free way to transfer their wealth is by cashing in your life insurance policy and giving them the cash. Paying life insurance premiums, with the assurance that heirs can inherit the money, are an affordable way to plan for this.
Some Advantage of Senior Life Coverage
Some life insurance policies have a cash value, or they can be settled for a cash value. Some types of life insurance, like whole life and universal life policies, actually build up a cash value. This value can be borrowed against or cashed in when the policy owner needs money. In addition to providing valuable coverage, it can also be a way to build up and asset. Many people like this idea of combining coverage with a savings or investment plan. Tern life does not usually have a cash value, but some may have an option to convert to a permanent type of life insurance. So universal life insurance, whole life insurance, and some term life, may be sold for a cash settlement to an investor. In other words, some policies may be sold for more than their cash value.
Seniors may still have a need for life insurance because responsibility does not end at 65! The good news is that insurers are extending affordable coverage to older people.
Here are two topics that seniors, and the grown children of older people. may be very interested in:
No Medical Exam Life Insurance << Find policies that do not require an insurance physical.
Over 50s Life Insurance — Yes, you can still find affordable life insurance after 50 years of age!
Related posts:
- The Need for Final Expense Insurance For Seniors Can Senior Citizens Use Final Expense Policies? Many seniors,...
- Why Seniors Buy Final Expense Insurance What is Final Expense Insurance? Before we can answer the...
- Senior Life Settlements – Basics of Selling Life Insurance For Cash Can Senior Citizens Get Paid Cash for Unwanted Policies? I...
- Can Older People Still Qualify For Term Life? When most of us consider life insurance for seniors, we...
- Understanding Variable Life Insurance Understand Variable Life Insurance Advantages and Disadvantages Take a moment...
Related posts brought to you by Yet Another Related Posts Plugin.
[...] Do Retired People (Seniors) Still Need Life Insurance? is a US blog post but the life insurance questions it raises are universal. The first is of course why would senior citizens need life insurance at all? Well clearly seniors still have responsibilities. Here are two of the topics discussed: Funeral and other expenses can cost thousands of dollars today. The person who passed away could leave debts that need to be settled and assets that need to be handled. Family members may need to travel and to come up with thousands of dollars to settle all of these bills during a very sad and stressful time. Many seniors may want to transfer their wealth to the next generation. A tax free way to transfer their wealth is by cashing in your life insurance policy and giving them the cash. Paying life insurance premiums, with the assurance that heirs can inherit the money, are an affordable way to plan for this. [...]