Millions of seniors are in the midst of enjoying their retirement, and while life after working for many years may seem like the final phase, there is more to consider for seniors than how they will spend their days. Healthy seniors should consider what will happen in the future and what type of care they may need as they get older. Being able to pay for your retirement expenses is just one part of the financial considerations for seniors. Long or short term care, nursing home expenses, and final expenses are all important considerations for anyone that is facing retirement.
Many seniors that are currently relying on only their savings to finance their retirement are missing out on the benefits of a life insurance policy as an investment. Life insurance can help seniors before they pass on, not just following the funeral. Seniors may believe – mistakenly – that after a certain age they will not qualify for a policy and haven’t given this type of investment much consideration.
In fact, there are several no exam life insurance policies that are available for seniors over the age of 60. Even if you have minor medical conditions, you may still qualify for a life insurance policy that can give you peace of mind and a powerful financial tool during your retirement. Let’s look at a few of the critical reasons that all seniors should have life insurance.
Protection From Debt
We never know what the future holds, and for seniors, the risk of unexpected illness or injury can mean a huge financial strain for the whole family. End of life care expenses can go well beyond the cost of a funeral. If an unexpected illness like a stroke becomes a reality, the cost of a nursing home or prolonged in-home care can be overwhelming.
Under the stress of medical bills, seniors can quickly drain out their retirement savings, leaving the balance to be paid by family members. No one wants to end up seeing their family members going into debt with the burden of their care. A life insurance policy with an added rider for end of life care expenses can help families pay for the needs of seniors that become unexpectedly ill later in life.
Your life insurance policy can also be used to pay for your funeral expenses. If you don’t have a pre-arranged funeral, the costs could be taxing for your remaining spouse and family. The average funeral is estimated to cost nearly $10,000. Your policy payout could help to pay those bills and provide your family with peace of mind.
Chronic Illness Riders
Dementia and Alzheimers are among the most common long-term debilitating illnesses to affect seniors. Memory-related ailments can hit anyone at any time and require specialized care that can be expensive. Whether you will require full-time in-home care or will need to be moved into a senior facility, the cost of long term care can be overwhelming. Your life insurance policy will offer specialized chronic illness riders that will pay out if you end up in a situation where you can’t care for yourself and require extra attention and care. Without this type of coverage, the burden of your care could be left to your spouse and family members.
Leave a Legacy
Leaving a legacy for your cherished family members may not seem like a priority until you realize that your gift could change a life for the better. With a life insurance policy, you can name specific beneficiaries that will collect all or a portion shared of your payout. These funds are protected, are tax-free, and cannot be taken within your estate expenses.
Imagine being able to leave not only memories with your family and cherished friends. You may be able to leave enough for your child to pay off their own mortgage early, or for your grandchild to pay for college without having to pile up thousands of dollars worth of debt. Your gift could change someone’s life for the better and create a legacy of success that will go on long after you are gone.
The premiums that you pay to your insurance policy may seem like an unnecessary expense for seniors that are on a tight budget. However, the money that you are putting into your policy can work for you outside of the basic protection. Most policies provide the opportunity for owners to borrow against the accumulated cash value.
If you have a financial emergency and need cash fast, you can borrow from your insurance policy at lower interest rates than going through traditional lenders. The amount that you borrow will get deducted from your final payout and you can use that money before you pass to help with your expenses.
Thinking about your end of life planning can be unpleasant and even intimidating, but it is a fact of life that all seniors should consider. Investing in a life insurance policy can do so much more than pay for your funeral expenses. Leave a life-changing legacy for your loved ones, protect your family from debt, and have the resources to pay for any necessary long-term care with your insurance policy. Being protected can give you the peace of mind that you need to get out and enjoy your retirement to the fullest.