Life insurance is generally advantageous for many adults. Thanks to the typically minimal costs, policyholders can ensure that loved ones have a financial safety net once they die.
Even though the benefits of this coverage are typically well-known, seniors are often left out of the equation. For older adults, life insurance isn’t usually deemed “worth it” due to the increased monthly premiums.
However, PHP Agency reviews that this doesn’t mean all seniors don’t need it. On the contrary, in certain situations, it can be beneficial for older adults.
Three Reasons Why Seniors Should Obtain Life Insurance
This type of coverage can supplement savings or fill a financial gap for most adults, including seniors in the following situations:
Life Insurance Helps Cover End-of-Life Expenses
While most adults obtain life insurance with payouts in the six- to seven-figure range, those who are only looking to cover end-of-life expenses won’t need that much.
Experts suggest around $20,000 or less for burials and funeral costs, so seniors can expect to secure life insurance coverage for reasonable monthly premiums.
Older adults should think realistically about their end-of-life requirements. After all, burdening loved ones is something most people want to avoid. So, a life insurance policy can prevent this from happening in case seniors don’t have enough home equity or savings to cover such costs.
Those With Debt That Will Outlive Them Should Consider Life Insurance
People should seek complete understanding of their personal financial circumstances before acquiring life insurance for this reason. Often, seniors choose to seek assistance from financial advisors.
Debts like mortgages, personal loans, and outstanding credit card balances are carried over to heirs when people die without enough money to cover them. Therefore, some older adults choose to take out life insurance policies that cover their debts, ensuring their relatives won’t need to pay them instead.
As mentioned, not everybody requires life insurance for this reason. Even mortgagees with balances can be valuable once the outstanding amount has been removed.
However, seniors concerned that they’ll leave loved ones with their remaining bills should seriously think about getting a life insurance policy.
Life Insurance Provides Inheritance
Older adults with limited home equity and minimal savings choose to take out life insurance coverage to give their beneficiaries inheritance (regardless of the amount). After all, this is the main reason that anybody obtains life insurance!
Naturally, senior policies aren’t going to be robust, and they’re more expensive than those for younger adults. However, it allows older people the chance to leave a nest egg for their family.
Underlying Health Conditions and Life Insurance
Those who relate to the three situations above should consider their underlying health conditions (e.g., obesity, mental health concerns, cancer, diabetes, asthma, and heart disease) before applying for a policy.
Some providers aren’t able to offer coverage to those with certain medical conditions, and those that do tend to boost their premium payments, making them more expensive.
That being said, seniors shouldn’t immediately rule out life insurance, as it can be incredibly beneficial for those they leave behind.