7 Reasons Why Seniors Should Get Life Insurance Today

by | Aug 7, 2023

After you retire and your employer stops paying for your life insurance, whether to continue with a policy becomes an important question. A common misbelief is that life insurance is for the young and seniors either don’t need it or can’t get it.

However, not only can seniors qualify for life insurance, there are many reasons why they should consider getting a policy. Life insurance has so many benefits, but we’ve put together a list of the top seven reasons seniors should get a policy today.

1 – Protects Families from Income Loss

If you’re the primary provider for your family, whether it be a partner, children, or grandchildren, a life insurance policy is extremely important.

After the death of a loved one, the last thing anyone wants to think about is how they’re going to pay next months’ bills. A life insurance payout helps alleviate those worries, giving your family, and any other dependents, a buffer before they need to worry about money.

2 – Assists in Debt Repayment

The goal for all of us is to be debt free by the time we retire. Unfortunately, with the current economy, that’s becoming a harder goal to reach.

For those with debts larger than their net worth, the money a life insurance policy pays out will prevent those debts being passed on to family members. If you know you have debts, whether they be credit cards or loans, consider getting a life insurance policy to help your beneficiaries pay them off.

3 – Helps Cover Funeral Costs

Funerals are extremely expensive and are only getting more so. While a life insurance policy often takes a month or two to pay out, there are add-ons that pay out immediately to those planning your funeral.

A well-planned life insurance policy will help cover burial, cremation costs, and any other hurdles your family faces after you pass.

4 – Covers Estate Taxes

There’s another end of the spectrum for those considering life insurance. Even if you’re financially secure, don’t have any debts, and your family’s finances are stable, you still might want a policy.

Those with financial assets can use their life insurance policy to pay off an estate planning. Even financially secure families can buckle under the weight of estate taxes, which makes life insurance an appealing option.

The best way to make sure your policy will cover estate needs is to speak with a financial planner.

5 – Works as an Inheritance

If you’ve been financially responsible and know that you won’t leave your loved ones with any debts, you could also use your life insurance policy as an inheritance.

Opting to use your life insurance as an inheritance takes off the pressure for you to save money for your partner, children, or grandchildren. You can live a vibrant life, unworried about your finances, and still know your loved ones will be well looked after when you’re gone.

6 – Offers Financial Flexibility

Life insurance policies are not known for being flexible. They require some work to get approved and often only pay out under predetermined, specific circumstances.

But, by adding a rider, or living benefit, to your life insurance policy, you could give yourself some financial flexibility. For example, an accelerated death benefit is a rider that will pay out your full death benefit if you’ve received certain medical diagnoses. This type of rider will help the cost of medical or nursing home care, preventing huge, unpaid medical bills.

While riders are additions to an existing policy, the choice could provide you with financial assistance at a time you need it most.

7 – Leaves a Legacy

Even if your partner and children will be financially secure when you’ve passed, life insurance benefits can still help.

A final reason why seniors should consider getting life insurance is that life insurance policies can be left to nonprofits or charities. If you have an organization that you’re passionate about and wish you could help more, you can name them as your beneficiary.

Not only will you be able to do a final act of goodness at the end of your life, you could leave a lasting legacy with those you help.


RELATED Articles


14 Tips for Seniors to Save After Retirement

14 Tips for Seniors to Save After Retirement

Senior Savings Staff

Retirement may seem financially frightening, but it doesn’t have to be! We've compiled a few easy tips you can follow to save money after you’ve retired so you can live the life you deserve. Read More >>

Top 7 Ways Seniors Can Live Well on Less

Top 7 Ways Seniors Can Live Well on Less

Senior Savings Staff

in order to truly live well as a senior, you need to be aware of what you’re spending. We’ve gathered a few tips on the best ways seniors can live well without breaking the bank. Read More >>

7 Reasons Why Seniors Need Burial Insurance

7 Reasons Why Seniors Need Burial Insurance

Senior Savings Staff

If you’re making a plan for when you pass, you should consider burial insurance. This  insurance could make a huge difference for your loved ones as they mourn their loss. Read More>>