Senior Life Insurance: What You Need to Know
If you don't already have a life insurance policy and are in your 50s or older, you may be wondering if you need a life insurance plan. Life insurance benefits provide for those who rely on you financially when you pass on. For those who are getting older and don't yet have a plan, senior life insurance is a good option to consider.
Learn what kind of life insurance policy options are available for seniors, why senior life insurance may be a fit for you, and what type of coverage you should consider:
What Types of Senior Life Insurance Are Available?
There are several types of life insurance policies seniors can consider. Term life insurance is a life insurance policy that lasts a certain amount of time. As you get into your 60s and 70s, some term policies may be unavailable to you.
Older adults are also eligible for permanent life insurance options like Guaranteed Issue Whole Life Insurance (GIWL Insurance), which is available for those ages 50 to 85. Anyone who applies cannot be turned down due to health reasons. You may be eligible for up to $25,000 in coverage to help with end-of-life costs, like funeral expenses or medical bills.
Why Would I Need Life Insurance Over 60?
Later in life, you may encounter reasons why a life insurance policy makes sense. Here are a few things to consider:
- You have dependents: You might have had children later in life or you might be raising your grandchildren if their parents aren't around.
- You have a special needs child or children: If you're still caring for a child with a mental or physical disability, even if they've reached adult age, you may want to get a life insurance policy so they are taken care of if you pass on.
- You want to provide a financial legacy: If you get a permanent life insurance policy like whole life insurance, that includes a cash value component that can be passed on as an inheritance.
- Pension is not guaranteed: In some cases, a pension will not be paid out or will be reduced if the individual passes. Senior life insurance can provide extra coverage.
As you get older, you may experience unexpected health issues. GIWL insurance offerred through AIG Direct includes living benefits, which can be used while the insured party is alive if he or she faces a chronic or terminal illness.
How Much Coverage Should I Get?
Life insurance may be a long-term solution for estate planning, inheritance planning, or funeral expenses. The amount of coverage you should get depends on the reason you're taking out the policy. You should discuss your desires with your insurance agent, who can make a recommendation for your ideal plan.
If the coverage is intended for expenses such as a funeral, cemetery, and church, around $30,000 should be enough. If the goal is to leave heirs a lump sum, ideal coverage might be between $100,000 to $1 million, depending on their needs. If you're getting paid a certain pension amount, and that will be eliminated when you pass on, you'll want to factor in those payments for however long you'd want to provide for your family.
You should discuss this with whoever your beneficiaries would be, like your spouse and dependents, to get their thoughts. It's also a good idea to meet with a financial advisor or lawyer to get an accurate amount of desired coverage.
A Life Insurance Policy Could Help Wherever You Are in Life
Even as you enter your 50s and beyond, you have an opportunity to get a life insurance policy that can help provide for your loved ones. The earlier you can look into senior life insurance, the more likely you'll be able to obtain a longer term life insurance policy or accrue more cash value while you're alive for living benefits in a GIWL insurance policy.
Discuss your options with a senior life insurance expert so you can get the best coverage for your loved ones. Contact AIG Direct today for a quote.