Is Life Insurance Necessary After 80?

Life insuranceIf you’re elderly and don’t have an insurance policy you may be wondering “Is life insurance even necessary after 80?”

Many individuals over 80 avoid buying life insurance because they no longer have family responsibilities. The children are grown, and their children have likely also reached adulthood. And while it’s certainly nice to be able to leave cash for family members after you die that’s not the most important reason to maintain a life insurance policy.

Benefits of having life insurance

One significant reason why insurance is essential for seniors above 80 is the right policy covers your final expenses. You can pay for the funeral you want (burial and/or cremation) and your loved ones aren’t stuck with expenses associated with your final arrangements.

A second reason is the right insurance policy pays expenses that have accrued over time, such as medical costs, credit cards, and various other expenses. You most likely don’t want to leave these expenses for family members to pay out of pocket.

Senior Insurance Is Simple

If you lack prior experience with buying insurance you may think it’s too complicated. However, this isn’t the case. There are plenty of options available for life insurance for seniors that are easy to understand and easy to buy.

Term insurance policies are a popular option because they are very flexible. You can usually get a policy that remains in effect for 5 years, 20 years, or any time frame in between.

Then there’s the question of affordability. This is particularly important for seniors living on a fixed income. Term policies cost much less than whole life policies and can be designed to meet your needs and your budget.

Finally, most term policies do not require a physical exam. You can buy a policy regardless of medical history. Even if you have a preexisting medical condition you can purchase insurance.

What you need to know before buying a policy

The premium cost depends on age. The sooner you buy a policy the less it costs in monthly payments.

Consider the terms of your policy before making a purchase. Many policies will only pay benefits if the policy-holder dies before the term expires. If you’re alive when it expires you’ll need to apply for a new policy. Obviously as you’re now older the monthly premium will be higher than the policy you bought previously.

However, some companies allow you to renew your existing policy if it ends before you die. The premiums may be a bit higher but you’re assured of coverage and the increase is less than if you were opening a brand new policy.

A third option gaining popularity is the return of premiums policy. If you outlive the policy’s expiration date, the premiums you have paid are returned to you.

Other considerations

Unlike whole life insurance term insurance does not build up cash value. You cannot borrow against it, nor surrender the policy for cash. This is usually not a concern for most seniors.

The most important insurance benefit is peace of mind. When you know your final expenses are covered you have less to worry about and can focus on enjoying your retirement and life as a senior citizen.

We suggest you take some time to look at your options. Find an affordable policy that meets your needs and is within your budget . You will generally find the cost of monthly premiums are quite small for the long-term benefits received

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