Life Insurance for the Elderly, Is it Expensive? Is It Needed?
First of all, what is considered elderly? Now a days it can be more difficult to define. It used to be that an elderly person was retired at around age 59, taking a vacations here and there or spending every minutes in or around the house on a rocking chair reminiscing about the good old times. Well, that certainly does not apply today. Many elderly individuals work full time or are involved in full time volunteer activities. Some are even involved in sports that could break the back of younger peers. An individual may not be considered elderly until age 70 or 75 or 80 even 90. As people live longer and stay in good health longer, the elderly lines have been blurred. And that is good!
Insurance companies have taken notice! When individuals in their 70s or older look for life insurance, life insurance rates are no longer necessarily through the roof. With mortality tables now extended to age 121, older individuals can get good rates on life insurance at much older age than even just 15 year sago (which is not a reason to procrastinate at younger ages – rates on a 70 year old are still much higher than rates on a 40 year old – secure lower rates as early in your life as you can!). Even if sometimes elderly individuals have or have had health issues good rates may still be available. Can someone in their 70’s, 80s or even 90s really get good rates or even be approved for life insurance? The answer is a definite yes and that should be a question to a qualified professional who has access to the right polices and companies. You may be surprised as to what kind of life insurance plans are available to older individuals. It is even possible to qualify for life insurance without an exam (although amounts may not be very large, but again ask).
Now, just because something is affordable does not always mean that it is needed. Besides the obvious final expenses which amount to at most ,000, why would an older individual need life insurance? That really all depends on the individual. And in some situations a very small policy is really all that should be needed. Things to consider when deciding on the need for life insurance are fist liabilities and second estate creation. With liabilities, elderly may need to consider all taxes that may need to be paid (estate or income), all debts including mortgages that need to be paid off, medical expenses that may need to be paid upon death and income replacement for spouse or other dependents.
With Estate creation, an elderly individual can leave a larger amount of money than they may not have bene able to for a surviving spouse or children or grandchildren. It is also not uncommon for elderly individuals to set up life insurance funded college funds for grand-children. Most of all, leaving a life insurance policy to supply a lost income to a surviving spouse is certainly an important responsibility. Some people have said that they would just use their savings to take care of all those needs (if it is even possible) but that is not always the most cost effective way to use retirement savings. For one, life insurance proceeds are not taxable and are very liquid. Savings plans may no be as liquid and most are taxable which can make them very costly for certain uses. Particularly if the uses are needed promptly.
Of course, much more can be said about elderly life insurance , but as you may see, being elderly does not mean being uninsurable or having little need for life insurance or paying high premiums. Even if that need is small, no one wants to leave children and grand children with the burden of final expenses and other financial responsibilities. No matter what your needs are, as we always say in all of our articles, be sure to ask, ask and ask more questions. Be well and live a long life.
Philippe Deray – About the Author:
Philippe Deray is President and CEO of MCD Financial Services and MCD Life. Our web site address is http://www.mcdlife.com
MCD Life is a successful, dynamic company built on the principal of serving our customers FIRST! Our primary mission is to bring peace of mind to our clients by offering innovative, value-added products and information that place emphasis on short and long term benefits, benefits backed by selected companies with high quality assets and written guarantees.
Our Focus Life Insurance for elderly individuals
With many years of experience in the insurance business, we have developed proprietary methods to help elderly individuals with great or not so perfect health history, get affordable insurance. We offer term insurance, whole life and universl life insurance. We will make this process as simple as possible and get you an answer as fast as possible.