Four Good Reasons Seniors Should Have Life Insurance
As seniors age then it’s time to think smartly about their expenses. Without an income then they will risk running out of money if their spending is too high. This means they need to look for affordable housing (find out more at https://www.immanuel.com/senior-living-choice/affordable-housing), their will, and getting life insurance.
1. Life insurance can replace lost income. Many seniors live on a fixed retirement income that is far below the standards of a working couple. When one partner dies, the surviving spouse can struggle to make ends meet. Final expenses, estate taxes, and basic living expenses even getting a simple cell phone for seniors can get complicated and can quickly put financial strain on an already limited income.
Life insurance for seniors in Canada makes sense because it can help reduce some of the financial burden that is caused when one spouse dies.
2. Life insurance can help cover final expenses. The average cost for a funeral and burial in Canada is $6000. For a senior citizen living on a fixed income, that cost can be devastating. Even a small term life insurance policy can provide tax free, liquid cash that will help to cover these expenses. This is another reason that life insurance for seniors in Canada is a necessity.
3. Life insurance can help pay off debts. Senior citizens are living longer than ever. However, the cost for extra care or specialized medical treatments can be overwhelming. The cost of living for seniors in a long-term residential care facility varies from province to province, with the average cost being between $1,597 and $2,178 per month. When you consider these numbers, a senior citizen could be spending much of their income on basic living expenses. Life insurance for seniors in Canada can help surviving family members to pay off any extra outstanding debts. This includes credit card debt, car loans, outstanding taxes, and even additional medical expenses or living expenses. Even a small life insurance policy can help surviving family members. If you have outstandings, your family could also help pay off those debts with the use of debt payoff planners from personal banking companies similar to SoFi so they won’t have to worry about it.
4. Life insurance can allow seniors to leave an inheritance. It can be used to leave an inheritance for a spouse or children. This is a simple legacy for surviving family members and usually very appreciated. It is important for seniors to use their wills to designate how the money will be shared. An estate planner is a great source of information for seniors wishing to leave an inheritance.
Life Insurance proceeds are paid out tax free and the younger you take it out the better. This is especially true for seniors. The difference in premium is more significant for a 70 year old versus a 65 year old than with a 50 year old versus a 45 year old. Also you can lock in at your current health. Many no medical life insurance plans still ask health questions and the more questions you can answer ‘no’ to the better the premiums.
Seniors want to have the peace of mind of knowing that those that they leave behind will be able to celebrate and honor their life. By preparing their estate and building a solid portfolio which includes life insurance, they can be reassured that the people that they care for most will be able to do this. So whether they want to leave a small inheritance or cover the cost of their final expenses, life insurance for seniors in Canada is the best ways to guarantee that surviving family members are not left with a financial burden.