If you are a senior citizen and find yourself without life insurance, a policy can be purchased without medical examination during the underwriting process. Policies written at this age can be designed to simply pay funeral expenses so the burden won’t be put on loved ones.
Nowadays, burials can cost up to $10,000, so if savings are not adequate, having an insurance policy is extremely important especially if your loved ones, too, do not have the means to pay for funeral costs.
Cremation costs which include an undertaker to transport the body, permits and filing for a death certificate can vary from about $500 to more than 3,000. If a visitation or funeral service is held before cremation, the cost will increase.
Life insurance can also pay medical bills and any outstanding debt that includes mortgage payments, credit card bills and business loans.
Life insurance for seniors does not make sense, if the following is already in place:
- Your funeral expenses are already covered
- You have sufficient savings set aside for golden years
- Your children are not financially dependent on you
- You have no outstanding financial commitments
- You have long-term care insurance
You may consider life insurance as inheritance or a charitable gift to a cause you care about. Permanent life insurance policies can earn considerable amounts of money that can be accessed by the beneficiaries upon the death of the insured.
Because many leave the money in the family, the policy can be considered an heirloom. Another option is to designate your favorite charity as a beneficiary that you would like to give back.
The best type of insurance depends on the reason you need life insurance. Term policies are available for income replacement but whole life is better if an estate is involved. Check with a qualified agent to determine the best policy for your needs.