It is easy to start to think of life insurance for seniors as a bit of a waste of money as we get older. We paid the premiums when we were younger to protect our families and ensure they were looked after should the worst happen.
When you are older and your family can look after themselves, is it really necessary to keep on paying life insurance premiums? Everyone has different circumstances so it is impossible to give a definite answer but the guide below should help you think about your specific situation.
Is over 60s life insurance a good idea?
There are times when having over 60s life insurance might be a good idea. If you have children that are still dependent on you for instance, you will want to provide for them after your death. Furthermore, you might look to purchase Life Insurance for Seniors if you are in ill-health and worried about financing medical bills or even concerned about your family after your death in terms of funeral costs. This way, you can be sure there will be no financial struggle for your loved ones who need assistance.
If you want to leave your loved ones a legacy, with a large inheritance you might consider a life insurance policy to provide this. You might also wish to look into whether your pension could be transferred to your partner after your death or whether you’re eligible for an accelerated death benefit. . If they would struggle to support themselves without your income life insurance would be a necessity.
How can I get more cover for my money?
If you are fit and healthy, you might wish to consider a ‘Whole of Life’ insurance product. You will need to pay premiums for as long as you live, but they are often a good way of securing more cover at a cheaper premium. Take a look at one of my earlier posts about life insurance to find out as much as you can before considering your needs.
When to consider selling your life insurance policy
You should only consider selling a life insurance policy if you are sure that your loved ones will be able to get by without your income.
Selling a life insurance policy can be a great way of unlocking cash for you to enjoy in your lifetime. It is much better than simply allowing an existing policy to lapse, but you should be sure that money accrued in that policy won’t be needed after your death. Read this article for more advice on selling your life insurance policy rather than allowing it to lapse.
Advantages of selling your life insurance policy
The main advantage of selling your life insurance policy is the lump sum of cash that you will receive. If you have figured out that you don’t need a policy, it is a much better option then just letting it lapse. The money that you receive can be used to help you and your family now. The cash can help with things such as medical expenses or can help you enjoy your retirement a bit more.
How to sell a term life policy
If your policy could be converted into a permanent policy then it is usually possible to sell it. Selling your policy can be complicated, so you might wish to speak to a life settlement company who can negotiate with a third-party or investor on your behalf in order to get you the best outcome. Typically, sales of life insurance policies are worth around 22% of the face value on the policy.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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