It’s becoming a very popular question: is life insurance really necessary? Well, not if you do not have dependents. Senior life insurance can be costly. However, if you have a spouse, children, grandchildren, or others that depend on you financially, senior life insurance is well worth the expense. You are ensuring you do not leave any financial burdens and that they have the financial stability to continue on after your death. Forbes has a good article on how to start planning and below are five reasons senior life insurance is definitely worth it.
Couples are Saving for Retirement
Senior life insurance could prove vital for those senior couples saving for retirement. Taking care of your children could prove hard to save money until they are out of the house, and for some families out of college. So you may start saving for retirement quite late. Having a life insurance policy could be the replacement income needed when other retirement sources are just not enough.
Consider if you have a pension plan. It may pay well for you and your family, as long as you are alive. However, if your plan is not set up as a joint-and-survivor payout, it's possible your plan is set up to end upon your death. It could be set up to end 10-15 years after you’ve started receiving it. This places your spouse in a predicament where the income they were used to is now cut short. This same situation occurs for those receiving social security as well.
Seniors with Dependent Children
For many seniors, their children grow up and are stable on their own. However, seniors who have had children later on in life should consider senior life insurance. The other idea is if the couple has a special needs dependent. This person could be well grown but will need to be cared for the remainder of their lives. You need to consider the expenses a single parent must take care of on their own such as transportation, day care, and possibly a nanny. It doesn’t matter if the other spouse is a stay at home parent or one in the workforce. Financial responsibilities will pick up for the surviving spouse.
Leave a Legacy for Children and Grandchildren
If you have children and grandchildren, have you considered what legacy you will leave them? Often some families have businesses, a large estate, or fancy cars to pass down. However, if not, a senior life insurance policy can ensure they have something to not only keep them on their feet, but start something fantastic on their own.
Covers Final Expenses
When you pass on, there are many expenses to worry about. You may not have your mortgage paid off. You also need to consider your burial expenses. Make sure you have left your family enough money to cover these vital things.
To Keep the Family Business Going
If you own a business or are in a business partnership, you want your family to continue that business. It’s, in essence, your legacy. Senior life insurance can ensure your family business continues on. They can use the money to hire a professional to help the business.
The above five reasons are why senior life insurance is worth it. You may be able to now think of a few reasons of your own of why it’s worthwhile to your family.