Nobody enjoys thinking about the end of their life, but death is something that must be planned for. Buying life insurance is one of the best steps that you can take to plan for your death. While many experts recommend that adults purchase coverage as early in life as possible, many seniors are faced with the dilemma of trying to find affordable coverage that will provide benefits to their loved ones after their departure.
THE BENEFITS OF LIFE INSURANCE FOR SENIORS
Life insurance for seniors provides your loved ones with a number of key benefits after death. Coverage may be purchased in your choice of benefit amounts, and upon your death, the death benefits will be provided to the named beneficiaries. Death benefits for seniors can be used in a number of ways, including:
- Payment of funeral expenses.
- Repayment of outstanding debts.
- Supplementing income for dependents such as a spouse or children.
- Providing heirs with a legacy.
- Funding large events in the family’s plans, such as putting kids through college or paying for an adult child’s wedding.
Many seniors today have children who are grown and financially independent, but many have a spouse who may be a financial dependent. While many seniors have already raised their children, some seniors do still have children who are dependent on them financially. Death benefits can be used to provide for all of those who are dependent on you after your death.
WHICH TYPE OF LIFE INSURANCE IS BEST FOR SENIORS?
After making the decision to buy life insurance, seniors must decide which type of life insurance to buy. Term life insurance is generally the most affordable option. It will provide death benefits to your beneficiaries throughout the term of the policy. Whole life insurance is more costly, but it can accrue cash value. However, it can take a considerable amount of time for these policies to accrue a significant amount of cash value. Therefore, seniors who purchase whole life insurance typically do so to benefit from a policy that will remain in place throughout their lifetime rather than to benefit from the accumulation of cash value. Depending on your age and how long you anticipate living, purchasing a 20 or 30 year term policy may provide you with benefits roughly equivalent to purchasing a whole life insurance policy and will be more affordable to purchase. However, if you want guaranteed coverage, need cash value accumulation or anticipate living beyond the length of a typical term policy, whole life insurance may be a better option.
Finding Affordable Life Insurance as a Senior
There are a few steps that you can take to make life insurance more affordable.
Consider that term life insurance is the most affordable option, and quotes for term life insurance will typically be lower than whole life insurance quotes.
Consider that the cost of your premium will be based on your age, your level of health and your coverage amount. Defining your coverage needs and only buying the coverage needed can be of benefit. Buying coverage before your next birthday can yield lower rates as well.
Finally, making an effort to stay in shape by eating healthfully and getting exercise can help you to qualify for the best rates possible.