Life Insurance for Seniors over 60
How to choose the best Life Insurance for Seniors over 60
In order to choose the best coverage, you first need to ask yourself why you are taking out a life insurance policy in the first place.
- Are you looking to use life insurance as an investment or do you just want protection for a period of time?
- What financial obligations do you still need to protect? For example: mortgages, debts, and credit cards? Who is still financially dependent on you?
- How much have you allocated per month for your life insurance purchase?
- What are your financial needs and goals?
The answers to these questions will lead you to the right type of policy for you.
Types of life insurance for seniors:
Term Life Insurance
Term life insurance provides protection at a fixed premium for a period of time. Term policies are usually 10, 15, 20 or 30 years.
No-Lapse Guaranteed Universal Life
This is a permanent policy that doesn’t build any cash value, but like term policies, provides you protection to age 90, 95 or age 121.
It is more expensive than term but not as expensive as whole life which builds cash value.
This coverage has been a good fit for seniors that want protection and are not interested in building cash value.
These policies are small whole life policies that do have a high monthly premium and stay the same as long as the coverage is in force.
Final expense insurance is a type of life insurance that helps seniors cover end-of-life bills, such as funeral expenses and healthcare.
If you don’t have a final expense life insurance plan in place for these bills, your loved ones will be responsible for them by default.
Funeral costs are expensive, and there are probably more costs than you were aware of.
According to the National Funeral Directors Association, the national median cost for a funeral with a burial and vault is $8,755. The national median cost for a funeral with cremation is $6,260.
These cost estimates do not include the cemetery plot ($2,000), monument (up to $10,000) or grave marker ($1,000), or miscellaneous items like flowers ($200) or an obituary ($200). If we factor those costs in, the average cost for a funeral with a burial and vault can be more like $15,000.
Final Expense Insurance Rates
Final expense insurance plans are meant to be used for end-of-life costs.
Because of this, the benefit value is generally lower than other permanent life insurances.
For example, it’s very common to purchase a final expense policy that has a $5,000-$25,000 benefit.
Be warned, however, that most companies allow you purchase a policy with a very small benefit. For example, $3,000 is the minimum benefit amount with one of the carriers we represent. Be careful that you don’t underestimate your final expense costs.
A $3,000 policy is not nearly enough to cover the most basic of funerals.
If you choose to buy life insurance, don’t forget to tell your policy’s beneficiary.
Since you’ve decided the answer is yes to do I need life insurance, you really want to know that the money will go where you want it to.
Every year, millions of dollars of life insurance policies go unclaimed because the beneficiaries don’t know to claim the money.
If you want your policy to go to your loved ones instead of the insurance company (and we’re assuming you do!) don’t keep the policy a secret.
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