All About Life Insurance for Seniors
Posted by Lenny Robbins on Wed, Feb 15, 2012 @ 03:43 AM
As your children leave home, you may think you don't need life insurance any more. However, many of us are living longer these days and life insurance for seniors can be an important part of the total package of your future financial planning. Whether you want to protect an income for your spouse, or leave your estate intact for your family, you might want to discuss with an independent insurance agent how life insurance can help you. Why an independent agent? Because they work for you, not a company.
Reasons Seniors Need Life Insurance
- Financial Protection for Families: Whether you have a spouse or special needs adult children, life insurance can be an easy way to be sure they are protected.
- Financial Planning: Life insurance can allow you to maximize your pension by choosing the lifetime only option on your pension plan. Then you can use life insurance to provide for your spouse and/or mortgage and debt relief.
- Financial Protection of Estate: Life insurance death benefits are generally tax free, so they can be used as a way of providing a tax-free legacy for your family. If you expect other parts of your estate to be taxed, you can use life insurance for seniors as a way to provide money to pay those taxes.
What Kind of Insurance? Term or Permanent?
When people are younger, they often just want financial protection for their families and choosing Term insurance is usually their least expensive option. Because people over 50 have a variety of reasons for buying life insurance, they need the help of an independent agent to sort through their options. An independent agent who is experienced in life insurance for seniors can help you decide which life insurance is better for you: Term or Permanent. Often, seniors need a combination of both types of insurance.
How Can An Independent Agent Help?
- Explain the different types of policies.
- See if your whole life policy can be changed to a better one through a 1035 exchange.
- Evaluate your financial situation and goals and suggest how life insurance for seniors can help you meet them.
- Find the best carrier and policy for your health history, lifestyle and financial situation.
The Bottom Line
Life insurance for seniors is an important part of the total package of your financial planning and an independent agent can help you understand your options and make the best choice.
