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5 reasons you should take out life insurance for seniors

Life insurance is important for everyone, but senior citizens should consider taking the extra step to make sure that they are covered. There are many benefits to having life insurance coverage, even if you do not have dependents or children that your passing would financially impact.

In this article, we take a look at five main reasons you need life insurance in your old age. Before that though, we will share three types of life plans available for seniors.

Three main types of life insurance for seniors

Term Insurance

This is the most common type of life insurance where you pay a premium for a set number of years. If you pass away during the term, your beneficiary will receive a death benefit. If this period elapses and you still want coverage, you can choose to renew your current policy or purchase another one.

Whole of Life Insurance

Whole of Life insurance is more expensive than term insurance, but it stays in effect for your entire life. It means that you never have to worry about renewing or purchasing another policy once the term expires. If you pass away while the policy is still active, your beneficiary will receive a death benefit.

Over 50s Plan

This policy is specially designed for seniors – anyone between the ages of 50-80. The good news is that you are guaranteed acceptance with the over 50s life plan as no health report or lifestyle audit is needed to qualify for coverage.

Your beneficiaries are assured of a payout as long as you continue to pay your premiums. You also pay a fixed, pre-agreed monthly premium depending on the amount of cover you need.

So, Why Should You Take Out Life Insurance As a Senior?

You want to plan for the inevitable

No one knows when their time will come, which is why it’s so important to always stay prepared for the unexpected. If you pass away without life insurance, your loved ones will have to bear the burden of your funeral costs and other expenses related to your loss.

A life insurance policy can help alleviate some of that financial stress. For example, your family will be able to give you a fitting send-off and probably have more to clear any outstanding debts you may have left behind.

You have financial obligations

Even if you do not have any dependents, you may still have financial obligations that need to be taken care of in the event of your demise. These financial obligations may include debts, unpaid bills or even an expensive business loan.

Someone must deal with these financial liabilities after you pass away. Having life insurance can help protect your family’s quality of life by ensuring that these debts are settled in the event of your death.

Remember, dealing with a deceased person’s debts can be a heavy burden on top of grieving, so make sure your loved ones are taken care of by getting life insurance.

You want to leave an inheritance

Having a life policy guarantees that those you leave behind receive a death benefit and continue living comfortably. In some cases, the payout is big enough to serve as an inheritance especially if you have children who you would like to remember you long after you are gone.

For example, your loved ones can use the proceeds to clear a mortgage or even buy themselves a new home, car or lasting gifts that remind them of you for many years.

You have a high-risk job

If you have a high-risk job, it makes it even more critical to take out life insurance. A few examples of jobs that are considered dangerous include security agents, firefighters and construction workers.

If something happens to you while you’re working, your loved ones will need money to cover your funeral expenses and any debts you may have left behind. By taking out a life plan, you guarantee that they won’t have problems dealing with these kinds of expenses.

You engage in extreme hobbies

If you take part in extreme hobbies such as skydiving or rock climbing, it’s a good idea to have life insurance. That way, if something happens to you while you’re enjoying yourself, your loved ones will be taken care of financially. Some sporting activities such as skydiving or bungee jumping may also require you to have a life insurance policy to participate.

Conclusion

As a senior, life insurance is key if you are serious about safeguarding the wellbeing of those you love in the event the inevitable strikes. Thankfully, there are many options available to seniors including the over 50s plans and non-medically underwritten insurance among others.

Couple this with the myriad of benefits that life plans offer and you have no reason not to take out a policy today! 

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