Life Insurance for Seniors Can Protect Your Estate and Your Family
When you reach a certain age you begin to accept that you’re closer to the end of life than to its beginning. As a senior, the kids have left your home years ago and you might have fewer responsibilities. However it doesn’t mean that you don’t need the protection life insurance offers.
You may not need as much insurance as people who are just starting a family and have a mortgage, but you need it just the same. Here are some reasons why:
Estate Taxes
For example, if you have a substantially large estate it can be subject to substantially high estate taxes. A life insurance plan for seniors can offer options to pay these taxes so that your beneficiaries will not be burdened with these taxes.
Funeral Expenses
Unless you have paid all your bills and no one is financially dependent upon you - and you have money in the bank to cover your funeral expenses - the burden of your demise will be passed on to your family. Funerals today aren’t cheap. Figure yours will cost a minimum of $10,000.
The Economy
As far as we’re all concerned, although it seems that we’re currently in a recession, the US government is beginning to print money like it’s going out of style. Historically, when the money supply has increased it has resulted in an inflationary spiral. Inflation can spread around the world. If so, whatever money you have will have less buying power this time next year.
If you are a senior you might recall the double digit inflationary spikes during the 1970s. Times were tough, but you were young and were able to handle it. Chances are you’re retired now or close to retirement and will not have the earning potential you enjoyed when you were young.
Your Lifestyle
That being said, many older people often have some sort of income. If you are older and married - or if you have a significant other - you and your partner in life may have become accustomed to a particular style of life. If one of you survives and that income evaporates, this lifestyle may no longer be affordable.
What to Do
So how can you, as a senior, help protect your significant other and your children?
One way is to get a modest term life insurance policy. Making affordable payments now can ensure that your survivor will continue to be able to enjoy your current lifestyle.
If you already have a whole life insurance policy - one whose tax deferred savings has increased as the years have gone by - you already may have amassed a substantial cash value. Perhaps you’ve already drawn on it or have taken advantage of its potential to become an annuity.
If you have been drawing on your cash value, your purchasing power has diminished. If so, a supplemental term life insurance policy can augment the challenges that inflation throws your way.
Considering that life expectancies have increased, now is the time to decide if you want to protect your survivors and relieve them of the challenges that your passing, your funeral, and inflation will bring. Cheap life insurance can protect them from it all.
Next, find out more about life insurance for seniors at Saga Life Insurance or go to http://www.TotallyMoney.com
Wendy Moyer is a professional writer.