After the age of 60, you may be dreaming of retirement and living your golden years without working in a 9-to-5 job.
But, do you know how long you will live? What’s more, do you have enough savings to last your entire lifetime? Apart from having a nest egg, have you thought about life insurance? If you haven’t, then you should do so now.
Why seniors should consider insurance
USA Today recommends you plan on living till at least 95 years of age. Yes, you might die before that, but what happens if you don’t?
There are a lot of things to keep in mind for old age, and life insurance might not be a priority. But, there are plenty of good reasons to think about getting insured if you aren’t already.
Do you have enough of a nest egg for your survivors to cover your burial costs? If you do live for a long period, then you should factor in the fact that much of your savings might get whittled away during your lifetime. With inflation rising day by day, cost of living will also increase in the decades to come.
Life insurance will give you peace of mind and ensure that the cost of your burial is covered after you pass on.
If you have a hefty loan for which you are liable, you will want to ensure that your survivors don’t have to bear its burden after you pass on. Having a life insurance policy is important to help pay off debts which may last longer than you do.
You may also want to leave a large gift to a charity or your family members. Taking out a life insurance policy is a great idea in such a case because death benefit is completely tax-free in comparison to bequeathing a lump sum of money which will be taxable.
Do you need a life insurance policy even if you are retired?
Well, that depends on a number of factors, such as:
- a) Do you have an existing policy?
- b) Are you still working or have loans to pay off?
- c) Do you have any disabled children?
- d) Would you like to leave a charitable legacy?
- e) Have you considered estate planning?
- f) Do you have surplus cash to invest?
It’s always advisable to make a decision on your long term insurance goals while you are still working. But if you didn’t take a decision before your retirement, it’s never too late to start the planning process. Just make sure you don’t put it off for too long.
Which insurance policy should you go for?
Now that you know why life insurance is a good idea if you are a senior citizen, you also need to decide which life insurance policy is best for you. Broadly speaking, the most typical policies for senior citizens are Guaranteed Universal Life, Survivorship Life, or Guaranteed Acceptance Life.
Each of these policies is unique in its own way and you should discuss their individual pros and cons with a trusted financial advisor before taking a decision. After all, if you do take out a life insurance policy at an advanced age, you’d want to make sure that you make the correct decision for your circumstances.
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