You’ve done a great job providing for your family. A comfortable retirement awaits you. How do you know if it’s time to get a new policy of life insurance? Many people who are either about to retire or have recently retired mistakenly believe they do not need life insurance. When it comes to money, you may no longer have to worry about things like home payments, tuition, and the cost of raising children.
Then, why is it important for the elderly to have life insurance? Many people over 65 don’t realize how vital life insurance might be for their loved ones in the event of their untimely death. Creating a strategy for your latter years is essential. Since people in the United States are living longer than before, proper financial preparation is essential.
Even if you have enough money saved up, unexpected medical bills or any other type of financial hardship could leave you without a way to cover your final expenses. Life insurance for the elderly can cover various costs, including final expenses, hospital bills, income replacement, and more. On that note, let’s look at some benefits of life insurance for retired people.
It’s a common misconception that life insurance isn’t necessary once you’ve reached retirement age. However, the reality is that elderly people frequently have the same or even more extensive requirements. Here are five of the most important reasons you should strongly consider purchasing life insurance once you reach retirement age.
1. People Are Living Longer
As per the SSA, the median life expectancy for men is 84 years old, while for women, it’s 87. hose ages in 1950 were 66 and 71. The costs of supporting a population that is living longer are straining government programs like Social Security, Medicare, pensions, and personal savings for old age.
In the past, retirees simply needed to plan for their financial needs until retirement age and beyond; now, they must plan for 16-18 more years of life. Some seniors have found a solution to this problem by continuing to work past traditional retirement ages, but others cannot due to declining health.
Consequently, many retired couples worry about having enough money in their bank accounts, pensions, and other sources of income to last them the rest of their lives. If you are concerned that your current assets and pension income won’t be enough to meet your requirements in retirement, a life insurance plan can be a solid financial safety net.
2. Medical Debts
You undoubtedly already know that skyrocketing medical bills are putting a serious strain on the budgets of many American households. The majority of Americans (62%) who declare bankruptcy do so because of medical bills; the elderly are not exempt. When it comes to a senior’s financial security, a medical emergency is the greatest risk.
In particular, many people build their retirement funds on medical projections that aren’t practical, so a severe disease or the requirement for long-term treatment can result in a significant decline in income. The cost of medical care might be cushioned by the protection provided by a senior life insurance plan. The death benefit on some types of permanent life insurance can be accessed early in the event of a terminal disease.
In some cases, you may be able to withdraw 90% or more of the policy’s net worth in the form of living benefits. These payments are a subset of the whole death payment that can be accessed throughout the policyholder’s lifetime.
3. Loss Of Pension
The number of elderly people declaring bankruptcy has increased recently, and this trend may be traced partly to mounting medical bills and decreasing pensions. The shift from traditional pensions to 401(k)s has left many Americans with insufficient savings for retirement. In the event of unforeseen costs, having access to the monetary benefit of a life insurance plan can serve as a safety net.
After a partner’s death, the surviving spouse may experience financial hardship if the deceased spouse’s pension is decreased or eliminated. The money received from a life insurance plan might be used to make up for or even compensate for this loss.
If you or someone you know is looking for life insurance in Houston for their retired relatives, then Franklin Life & Annuity is your best option. We are among the top life insurance agencies in Houston and offer comprehensive life insurance policies. Contact us today to learn all about our offerings in detail.