While it’s more common for individuals to purchase life insurance at a younger age in preparation for their later years, some seniors may find they need life insurance later on. When it comes to senior life insurance, it can be a little different than purchasing life insurance earlier. Learning more about your options and how to choose the right one for you will help you make the best decision to protect your financial future.
First and foremost, when understanding why you may need life insurance for seniors, it’s critical to learn what the money can be used for. Most people see life insurance as a way to pay for funeral costs, but this isn’t the only use for these policies. Sometimes, individuals require hospice care or acquire other end of life expenses. In addition, once you pass away, this money can be used for a large number of expenses such as paying off any remaining debt you have, providing for children, grandchildren or other dependents, paying for estate taxes or leaving an inheritance.
There are many types of insurance policies you can choose from. Younger generations often choose a term or whole life insurance policy, but these aren’t the only senior life insurance options. For those who are in senior living in OKC, you can choose from the following types of policies:
Burial Insurance — If you only need enough cash to pay for funeral expenses and other end of life costs, burial insurance can be the ideal option. However, it’s critical to keep in mind benefits are extremely limited and can’t be used for other costs.
Annual Renewable Term Insurance — Sometimes you may be unsure of whether you can maintain paying for premiums. This type of term insurance policy works similar to a traditional term policy, except you get the choice to renew each year without going through the approval process again. This means you can keep it as long as you need it.
Guaranteed Universal Insurance — This hybrid insurance policy can be in effect for a set term or extended for the duration of your life. Premiums remain consistent like a whole life policy, but there is no cash value attached to it. This type of policy is ideal for paying estate taxes and several other costs.
Universal Life Insurance — This type of insurance policy is in effect until the end of your life. The value of the policy depends largely on how well the investments attached to it perform, similar to your 401k retirement plans. There is a higher risk, but there can also be higher rewards.
Choosing the right life insurance for seniors isn’t always easy, but there are plenty of advantages to having a good policy. Talking with a financial advisor can help you make the right choice for you or a senior loved one. If you need help finding an insurance provider or need more information on senior living in OKC, contact us. We can guide you through the process.