Ta-Rah-Rah Boomer Days
Posted by Lenny Robbins on Tue, Jun 14, 2011 @ 04:56 AM
The baby boomers have just begun reaching retirement age. The next several years will have more and more of us at that milestone. Life insurance for seniors can help with pension maximization, estate taxes and with securing a financial future for your spouse.
Pension maximization and life insurance for seniors
- If you have a pension with different payout options, life insurance may allow you to take the maximum pension during your lifetime, while providing financial security for your spouse through the life insurance.
- You must be insurable at a price that makes financial sense in the equation.
- An independent agent with experience in pension maximization can help determine if it makes sense.
Estate taxes and life insurance for seniors
- It appears that estate taxes are here to stay, although there may be changes to the laws.
- If you expect to pay significant estate taxes, a survivorship life insurance policy may make sense for you.
- Even if one spouse is uninsurable you can still get a survivorship (or second to die) life insurance policy.
Securing your spouse's financial future with life insurance for seniors
- A life insurance policy can secure your spouse's financial future by assisting with mortgage repayment, debt repayment and day to day expenses.
- If you have concerns that your spouse's finances would be difficult without your income, you may want to consider life insurance.
Misconceptions about life insurance for seniors
- It's not affordable. The premium will depend on your health, history, medications, etc and the amount and term of the insurance. (A 60 year old male who receives a preferred non smoker rating can purchase $250,000 of coverage for 20 years for only $128.94 per month. For 15 years the premium drops to $66.16 per month. A female would be even less.)
- I won't be able to get insurance with my health history. For some applicants this will be true. But for many it's not. Your independent life insurance agent will be able to have you apply with the company that will look at your situation in the most favorable manner. That's one benefit of an independent agent.
- My health history will make insurance too expensive. Using an independent agent can save you money. We recently secured a super preferred rating for a client with a prior brain hemmorhage (see June 4, 2011 blog). Who would have thought this possible?
Key Points
Seniors have life insurance needs that often can be met with affordable premiums. Be sure to speak with an independent life insurance agent with experience in the senior market. You might want to find a baby boomer agent! Ta-Rah-Rah Boomer Days!!
Photo credit: Jeremy Bronson