Should a Senior Like Me Worry About Getting Life Insurance?

by Ryan Yates on October 12, 2013

This is a common question among individuals over the age of 50 and the answer to this question, with very few exceptions, is always yes. It’s not a question that tends to come about due to someone your age not wanting life insurance coverage; typically, it comes up due to the prices of premiums getting higher as you get older. The thought here being: should I take on this extra expense later in life? Will it even be worth what I’ll have to pay? Again, the answer is yes.

There are two reasons why seniors worry about the worth of a life insurance policy at their age, and those are that they 1) don’t have children that rely upon their income any longer, and 2) they have a spouse that has made investments elsewhere, such as retirement.

While both of these reasons are sound, they are still outweighed by the reasons why a senior should still consider obtaining a life insurance policy. You can get your own life insurance quote at Suncorps new insurance page.

4 Reasons Why Life Insurance is Still a Good Idea for a Senior Citizen

1. Cover More Financial Bases
Often, seniors haven’t really covered all of their bases and they don’t realize this until they sit down with a financial advisor that can really lay everything out on the table. When this discussion takes place, a financial advisor worth their salt will often ask the following questions:

  • Do you have grandchildren whose college tuitions, future weddings, or future generations, you’d like to provide for?
  • Have you financially planned, and set aside funds, for your children or grandchildren should something happen to them medically?
  • Do you currently have any children, or grandchildren, who require extra medical expenses for a life-long illness, or disability?
  • Do you have a large estate, which will be subjected to a hefty estate tax once you die?
  • Do you currently own, found, or have substantial affiliations, with a business or charitable organization that you need, or would like to, provide for?
  • Do you have heirs that you would like to gift with trusts?

Affirmative answers to any of these questions raise a significant, and valid, argument in favor of a life insurance policy.

2. Provide Your Spouse with a Comfy Retirement
This point is actually one that would be brought up with all of the above mentioned ones by a financial advisor, but it deserves its own mentioning, as it isn’t always thought all the way through.

Even if your spouse has their own retirement lined up, or their own financial investments, there’s a lot that could happen after you pass. For instance, if you pass several years before your spouse actually comes into their retirement, they might find themselves financially affected for a time before those funds become available. When this happens, widowed spouses often are forced to dip into their 401(k) and then push back their retirement in order to replenish the losses.

With a life insurance policy on the ready, they’re completely covered for anything that might come up, can retire on time, and possibly even extend any extra funds that they didn’t need to other family members or charitable causes. It’s always better to have too much, than too little, after all.

3. Quick Cash Will Come in Handy for Your Loved Ones
When you die, your life insurance policy will deliver a fast cash payout to your loved ones. If everything was in place, and all premiums were paid, your loved ones will see those funds within two to three weeks. This comes in very handy for loved ones who had to take off work to care for you up until death, who are continuing to take off from work to grieve, who are left with residual medical bills, who need funeral reimbursement, and who are just starting to see estate taxes, probate costs, and outstanding debts pile up.

4. Shield Your Estate from Uncle Sam
This is especially important if you and your estate have a high net worth, or if you currently run a successful small business. You may think you’re leaving behind a substantial amount to your heirs, but it might not be so substantial once a large chunk of it is liquidated to handle the estate tax Uncle Sam wants to put in his pocket.

How does a life insurance policy help? Well, you can set it up to pay off the estate tax; in fact, you can make the policy’s sole purpose exactly that. Then, all other investments you’ve made, and assets you’ve set aside for your heirs, will go solely to them – just as you intended.

{ 4 comments… read them below or add one }

Stan Lee January 3, 2014 at 12:49 am

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talkcarinsurance January 11, 2014 at 9:44 am

In later ages, life insurance is a great way of estate planning. If you have assets your family will face estate taxes after your death. This becomes extra important if you have business that is your life long legacy. If the life insurance pays the estate taxes your heirs can carry on your legacy. Also, a will would be essential along with life insurance. Many people die without leaving a will.

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Hannah February 17, 2014 at 3:15 am

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John @ Wild AboutFinance March 21, 2014 at 12:46 am

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