For years there has been the idea that Senior Citizens don’t need life insurance At one time, insurance companies even refused to cover the elderly. Today, in many states, laws have changed to where they require life insurance companies to provide guaranteed coverage to those over the age of 63.
But people 65 and older still find it hard to buy life insurance. The premiums for Whole life insurance are quite expensive. But there is a way to cover your golden years with an insurance policy that serves an important purpose and is relatively affordable.
It’s called Term Life Insurance and is usually purchased for a temporary need, such as to cover a bank loan or a mortgage. Term life is the most inexpensive type of life insurance to buy and for our purposes here, to cover the possible final years of your life.
Seniors with a history of good heath up to 75 years of age can qualify for a 10 to 15 year policy with a value of between $10,000 and $25,000 with a premium of under $100 a month and without a medical exam.
You may be thinking that $10,000 to $25,000 for a 10 year term isn’t worth the trouble but as you will see, this isn’t the case.
If you have a mortgage, $25,000 will enable your beneficiaries to make mortgage payments for about 2 years. Your loved ones can stay in their home that you worked so hard to keep until they decide what to do with the property. This will give them time to grieve and eliminate any immediate financial burden.
And what better way to preserve your legacy than with a $25,000 gift to a favorite charity or organization that you were a member of. A tax-free gift to be used for something worthwhile will be greatly appreciated and remembered for years to come.
Another great way to help someone out is to leave the money to finance someone’s education. A cash gift of this magnitude will go a long way to help any college student with tuition, housing, books, etc. Others may find a creative way to use the money by investing in an endowment to help finance 4 years of college or more.
Most importantly, the money comes in good use for covering final expenses at the end of one’s life. With the average burial costs ranging from $8,000 to more than $15,000, a $25,000 Term Life policy is practical and eliminates the financial burden an unexpected death can create.
When your loved one turns 65, start to determine whether you need more insurance coverage. It is best to be over insured rather than under. When my Mother passed away last year, she once told me that she had enough insurance to cover her final expenses. Her life Insurance policy death benefit was only for $1500 and I had to pay for the rest of it out of pocket. A $10,000 to $25,000 would have come in handy.
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