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Life insurance is important especially when you have dependents. Should you pass away, you don’t want to pass the financial burden of hospital bills, funeral costs, and debts on them.

Therefore, you need to choose a life insurance company and a policy that is suitable for you and pay your premiums. In this way, if you die, your family will receive a lump sum payment, which they can use to support themselves, ensuring that you can still take care of your loved ones after you’re gone.

It is never too late for life insurance even at 65 or 70 years of age. According to data collected by the Center for Disease Control and Prevention (CDC), once you reach the age of 65, you can expect to live another 19.3 years.

Term and permanent life insurance life policies are available to older people regardless of age. However, for term life insurance, there is a cut-off point which we shall look at later.

Find What You Need


Which Seniors Need To Buy Life Insurance Coverage?

This is dependent on the individual and whether it is necessary for them. As you get older, your financial responsibilities diminish, in which case if you are living comfortably and have no dependents, life insurance may not be necessary.

Here are reasons to buy a life insurance policy:

Life insurance is not required when:


Types of Insurance

1. Term Insurance

Main features of a term life insurance policy:

2. Whole Of Life Insurance

It is recommended for seniors who have a substantial income, own a large estate, and require liquidity, as well as those who have maxed out their IRA or 401(K).

If you do not want to pay very high premiums, then structure your policy in a way that it does not build up much cash values. Always speak to an insurance agent to help you figure this out.

3. Final Expense Life Insurance

It is the most popular insurance cover for seniors. It is basically whole life insurance with lower death benefits ($2000–$25,000). It is also known as burial insurance, simplified issue life insurance or guaranteed issue life insurance.

It is recommended for seniors who have significant life-threatening conditions and for those who require minimal coverage. The primary intention of this insurance is to pay any small debts such as medical bills and to prepay for funeral expenses.

You can assign it to a funeral home of your choice where once you die, all your costs are catered for. Relieving your family of this burden is good.

Studies show that the average costs for a basic funeral are $7181.This caters for embalming, transferring, viewing, burial and service fees. With other extra expenditure, the cost could go up to $25,000 or more.

If you are still quite healthy and are looking for a way to cover your final expense, opt for a term life insurance since a final expense insurance costs more.

4. Guaranteed Universal Life Insurance

This is permanent life coverage. It is very often mistaken for a whole life insurance; however, they are very different.

If you still require a significant amount for your senior years but not on a long-term basis, consider pairing guaranteed universal life insurance with term insurance this way you can cater to both your permanent and temporary needs.

5. Guaranteed, Modified Or Graded Death Benefit Policy

This type of coverage is similar to final expense life insurance. The main difference is that, with graded death benefit insurance, the amount paid out is dependent on when and why you die while this is not considered in final expense policy.

This insurance is ideal for people with serious health problems. Even if you die within the first two or three years, your family will still receive the premiums with 4- to 10-percent interest.


Ensure You Get the Best Life Insurance Rates

Here are some approaches you can take to ensure that you get the best life insurance rates:

Sources

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