There are some significant reasons why seniors may want (or need) a life insurance policy.
Published: 2022-12-02 02:49 pm
Why seniors should buy life insurance
There are some significant reasons why seniors may want (or need) a life insurance policy.  Getty Images/iStockphoto

Life insurance is one of the most important financial investments an adult can make. For a minimal fee to an insurance provider each month (often discounted if paid annually), the insured can rest easy knowing that their loved ones will have a financial safety net in their absence. 

Some policy types can even offer the policyholder a cash account to use while they're still alive.

While the benefits of life insurance are numerous, there are some groups of people who may benefit more than others. Young people, for example, can generally secure a robust policy for a minimal cost. A term life insurance policy for someone under 40, for instance, could cost less than $100 a month - and be worth more than $1 million.

One demographic that's usually excluded from the life insurance conversation? Seniors. Life insurance for older Americans is often considered not to be worth the price tag.

But, like most financial investments, the benefits of life insurance are specific to each individual. And there are some significant reasons why seniors may want (or need) a life insurance policy that we will explore below.

If you're in the market for life insurance then start by getting a free price estimate online now so you know what to expect.

Here are four reasons why a life insurance policy, even in a minimal amount, should be purchased by seniors:

It can cover end-of-life expenses

Many people think of life insurance as a big payout to beneficiaries after the policyholder has died. But it can also be used for more practical reasons, like covering the full cost of end-of-life expenses. A wake, funeral, coffin and burial could cost thousands of dollars. That may not be money your family can afford to part with. Fortunately, a life insurance policy could take these concerns out of the equation by covering the outstanding expenses.

It can pay down debt

Are you a senior worried about leaving debt to your loved ones? If you have a life insurance policy you can stress a little less knowing that your family will have the financial assistance to pay down what you owe. Life insurance is primarily designed to provide a safety net for beneficiaries after the insured has died. By purchasing a plan that can help eliminate the debt that would otherwise be passed on, you'd be doing precisely that.

Get a free price quote online now to see how much you're eligible to receive.

It can serve as an inheritance

If you're a senior with little to no savings or home equity a life insurance policy could help fill the gap by leaving your beneficiaries with some welcome financial support. Granted, a life insurance policy for a senior won't be massive (think under $50,000) but it's still better than nothing - especially if it can be obtained for a minimal cost.

It provides peace of mind

This is often thought of as a benefit for policyholders of all ages so why should seniors be any different? All insurance policies provide some level of comfort and peace of mind by letting the policyholder know that they have financial support should something go wrong. In this case, a death in the family could be traumatizing. But with a life insurance payout left by the insured, the senior in question can rest easy knowing that their loved ones won't be burdened by major financial concerns (or, at a minimum, that those financial concerns will be reduced).

The bottom line

This is not an exhaustive list. As mentioned earlier, the benefits of financial products are specific to each individual's personal circumstances and financial well-being. With that being said, if you're a senior looking to cover end-of-life expenses, pay down debt, provide a nest egg for loved ones - or simply want peace of mind - life insurance may be worth buying.

Start shopping providers to find the best plan for your needs now or use the table below to compare your options.

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