Life Insurance for Seniors   by Dwayne

in Insurance / Life Annuities    (submitted 2011-11-09)

Insurance is important during all phases of life. Young individuals and families require coverage in the event of a premature death, retirees need coverage to bridge income needs for loved ones, and seniors often consider coverage for final expenses, leaving funds to a non-profit organization or creating a legacy for loved ones. The amount of insurance needed during each phase of life, as well as the ideal type of coverage will vary.
Final Expenses
The average funeral costs within the U.S. range from $10,000-$15,000. In order to cover these costs and to avoid burdening a friend of family member, many seniors turn to affordable insurance. A portion of an existing policy could be earmarked for these funds. Or alternatively, a cash value, or permanent policy, could be obtained during retirement specifically for this purpose. The most popular selection for seniors who do not currently have sufficient assets or a life insurance policy to cover these costs is to apply for a whole life or universal life policy. Many insurance companies offer special rates for seniors and limited medical exam requirements for approval.
Life Insurance- Charitable Giving
What organizations do you passionately give your time and/or resources to? Many seniors have dedicated themselves to one or more causes over the course of their lifetime. Whether the passion includes pets, abused women, children's education or the arts, it is central to one's beliefs and passions. Many seniors have a strong desire to leave a financial legacy to one or more of these charitable organizations. Donations can be received as cash, securities and through insurance proceeds. While all forms of donation are welcomed, creating a insurance trust or selecting a charitable organization as the beneficiary of a life insurance is often one of the most cost effective options for the donor. Life insurance enables the donor to give funds for pennies on the dollar to a designated beneficiary. And, it leaves the remainder of their accumulated estate for the donor's heirs.
Life Insurance- Building a Legacy
Some of the nation's wealthiest families built their fortune over several generations using life insurance proceeds. For pennies on the dollar, life insurance can create a significant estate for designated heirs. These funds can be added to any other accumulated assets during the individual's lifetime. When combined, a much more sizable estate is created than if assets were considered on an isolated basis.
Whether funds are needed to cover a senior's final expenses, to create a legacy for a favourite charity, or to create a family legacy, whole or term life insurance is a viable option to provide these outcomes. Time should be spent considering which type of insurance is most appropriate for the senior's goals and desires. In addition, the senior's risk tolerance, total investable assets, household income and expenses and mortality rate should all be taken into consideration when designing an appropriate insurance solution.

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