Many life insurance companies insist that your 20s and 30s are the periods when you should be buying insurance. However, it is possible to buy life insurance in your 50s and 60s. It can be a bit expensive, but it can be worth it.
Life insurance for seniors mostly aims to make the end of life comfortable and make it easy for their loved ones. Here are a few essential plans that you should look into:
Final Expense Insurance
Insurance companies sell final expense insurance to help you with your funeral and medical expenses. When you are at the end of your life, you most likely have plenty of medical expenses. Your heirs will also need to pay for your funeral. This is where the final expense insurance comes in. Depending on how big you want it, you can have up to $50,000 ready to pay off your final expenses. This can be a big weight off the shoulders of your loved ones.
Term Life Insurance
For those who have just retired, term life insurance is one of your best options. One major challenge of getting insurance as a senior is paying off the premiums. Term life insurance is more affordable because it covers only a certain period. This can be from 10 to 30 years and usually allows for conversion at the end of the term.
That can be a big help if you are already aged by the time the term comes up. Death benefits are only paid when you die during the term; no death benefits are released beyond the period of coverage.
Whole Life Insurance
A whole life insurance policy is a great idea for those who are more comfortable about their financial situation. This plan requires you to pay until the day you die and will be sure to pay out to beneficiaries. The main advantage of this policy is that you can actually borrow against the policy. This can help defray medical costs, though it will lower the resulting benefits. It is also more expensive than normal insurance.
Guaranteed Universal Life Insurance
This option is a mix between term and whole life insurance. It gives people a choice of coverage within a specific period or until the day they die. The main advantage of this policy is that it is affordable, with premiums unchanging from start to finish. For those seeking to give money to their beneficiaries or to have a cushion for the final expenses, this is a good option.
Universal Life Insurance
This is an interesting policy since it mainly depends on investments. The insurance company invests your premiums and your benefits come from that. It can be expensive, but policyholders can also take out loans against this policy, though that will be deducted from the final payout.
Life insurance is the best way to secure the future. Seniors can have peace of mind if they have that area covered. One or more of the plans discussed above can help you with that.