Well, it’s official: we’re all getting older. We may have thought we were invincible in our youth, but the reality is that we’re all going to kick the bucket eventually.
With a life of hard work behind us, we typically assess how we stack up financially as we enter our golden years. A full retirement account and a paid-up mortgage are positive signs of good money management.
However, there are several reasons to consider keeping or purchasing life insurance after the age of 60, including:
1. Final Expenses: One of the main reasons to purchase life insurance is to pay for final expenses, such as funeral and burial costs. Even if someone has saved enough money to cover these expenses, life insurance can provide a way to pay for them without using savings or assets that might be needed for other purposes.
2. Paying off Debts: Life insurance can be used to pay off outstanding debts, such as business loans or credit card balances, providing peace of mind for the policyholder and their loved ones.
3. Leaving a Legacy: Life insurance can also be considered part of an inheritance, for those who wish to leave a financial legacy to loved ones, charity, etc.
4. Supplementing Retirement Income: As people age, they may need to supplement their retirement income to maintain their desired lifestyle. Life insurance can provide a source of income for a surviving spouse or other family members.
5. Long-term Care: Some life insurance policies have built-in long-term care benefits to provide coverage for care not covered by Medicare or Medicaid. This can be especially important for older adults concerned about long-term care’s high costs.
It’s worth noting that buying life insurance at a later stage in life, especially over 60, can be more expensive than purchasing a policy at a younger age. But some options are specifically tailored for seniors, known as guaranteed issue or final expense policies.
It’s important to consult with a licensed insurance professional to help you understand the options available to you. They can help you find the best policy suited to your needs and budget.