Why Do Seniors Need Life Insurance?

A lot of us though we would not need life insurance in middle age or retirement. We figured that we would be fine once the house got paid off and the kids were grown. So the large term life insurance policy we purchased was fine. It  would expire in a few decades, but by that time we would have saved plenty of money to protect our family if we passed away.

The problem is, this way of thinking just did not work out for a lot of older people. For instance, many people purchased a mortgage life policy. They planned to have their home mortgage paid off by the time that policy expired. But then they extended their loan, bought another house, or had to take out a second mortgage. Now the find that their policy is gone, but their mortgage is still with them. They know that if they should pass away, their family still depends upon their income to keep the home they have paid on for so long.

Some Reasons Older People May Want More Life Insurance Coverage

• Pass tax free wealth on to their heirs
• Pay for funerals and other final expenses.
• Protect a business if the owner or partner should pass away.
• Make sure that a spouse or other family members have money to live on.

Can Seniors Buy Life Insurance? Younger and healthier people will always be cheaper to insure. But we have good news! Americans are living longer and healthier lives than they were a decade ago, and of course, in any decade before that! Middle aged people, and even people in their senior years, can still choose between many life insurance options. Even if you already have life insurance, your needs may have changed. Even though you are 10 years older than you were a decade ago, if you need less coverage, you may be able to find a new policy with less coverage at a lower rate.

What Kind Of Life Insurance Can Older People Buy?

• Term Life Insurance For Older People - Large insurers are willing to extend affordable 10 to 20 year term policies to people in their 70s. The applicants must be reasonable healthy for their age, but if so, an older person can still find a few hundred thousand dollars worth of term life.
• Senior Life Insurance - These are usually whole life ins
• Insurance policies that were specifically designed for older people. The underwriting is simplified, and some policies do not require underwriting. The face values on the policies tend to be smaller, but the premiums are reasonable, underwriting is relaxed, and this is cash value life insurance that does not expire after a set term of years.

So, if ten more years would get the house paid off or get the kids educated and on their own, coverage may still be available in the form of a 10 year term policy. If an older person decides they like the idea of passing on a tax free estate to their children when they die, and also to leave money so their final expenses can be paid for, a whole life policy may be the right answer.