What to Look for in a Senior Life Insurance Policy


What to Look for in a Senior Life Insurance Policy

Your need for life insurance will usually decrease as you grow older and accumulate other assets. The primary need for life insurance is based upon providing income to someone who is financially dependent upon you. If the assets you are leaving to heirs will be sufficient after you pass away, then your need for life insurance may disappear.

Here are reasons seniors may need life insurance:

Final expenses. Provide funeral and related expenses to close up an estate.

Inheritance. Fund an inheritance outside of your estate’s assets.

Liquidity. Provide liquidity for an estate that has mainly illiquid assets, such as real estate.

Income replacement. Continue income for a spouse or other dependent when your income is primarily from a pension or annuity that has minimal to no survivor benefits.

Debts: Provide funds for survivors to pay large debts.

Estate taxes. Provide funds to cover potential estate tax liability for heirs.

Special needs child. Fund a special needs trust for a dependent who needs lifetime financial support.

Charitable bequest. Make a lump-sum donation to replace your ongoing financial support for a non-profit.

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