Life Insurance for Seniors: A Worthwhile Purchase
Strong financial planning is merely a necessity than a luxury in recent times. It is a common misconception that money isn’t necessary in the olden days, but the opposite is always true. Financial expenditure in the olden days plays a crucial role in the medical, funeral, and other essential expenses.
The necessity for senior life insurance
Like mentioned above, many people believe that as citizens reach their twilight years, their obligations and the need for certain things diminish. But the reality is far different from people’s claims, especially for senior citizens above the age of 85 years. The main benefits of employing senior life insurance plans are:
Increase in life-span
According to certain studies, the life span of men extends to an average of 84 and women to the age of 87. However, this was not the scenario in the 1950s when the men and women lived for an average of 66 years and 71 years respectively. This primarily means that senior citizens are compelled to live their lives 18 years longer. In such situations, budget life insurance for citizens over 85, plays a crucial role in their medial check-ups and overall well-being.
According to researchers conducted, almost 62% of the bankruptcies around the world, is caused due to medical debts. This reason is primarily sufficient to make long-term plans in the senior stages of life. Having an affordable medical plan can help in alleviating these medical debts.
Around 20% of the young population does not live with their parents and are accustomed to growing with their grandparents. This increases the financial burden on senior citizens who ought to purchase loans. Instead of taking loans at an old age, financial insurances can reduce half the burden and benefit them during these times.
Loss of pension
Loss or diminishing pension has resulted in senior bankruptcy. Poorly funded retirement plans are a major cause of these difficulties in the later stages of life. Instead of hovering around with the little money they have, they might as well invest in life insurance, which can prove its advantages at the need of the hour.
Different types of life insurance for seniors
Now that we’re familiar with the advantages, it’s time to look at the different types of senior life insurances:
- Whole Life Insurance
- Universal Life Insurance
- Indexed Universal Life Insurance
- Term Life Insurance
- Final Expense Insurance
Different ways in which life insurances can be used
Although the above-mentioned advantages are some of the reasons for using life insurance, there exist other benefits of them like:
- Covering burial expenditure
- Protecting a spouse/child
- Protecting estate taxes
- Leaving a legacy.