For people who have ages over 65, life insurance is still of high importance to have. Why do people of such old ages need to have life insurance? There are lots of reasons why and actually, most of the reasons are the same with people who are younger than 65. Well, keep reading for the following can be really helpful when deciding to buy a life insurance policy not just for your loved ones who are aged 65 and above but for you as well, whatever your age is.
Final expenses are also called end-of-life costs. Lots of senior insurance policies are sold so that burials, funerals, as well as debts can be covered. In the United States at present, funeral costs are expensive but these costs that can reach up to several thousands of dollars are still considered as policies of smaller face value.
Many of these final expense policies being offered by many different insurance companies can be bought with death benefits that are usually of $2,500 to $25,000 value. These are kept at a more affordable price for the reason that, when compared to other life insurance types, they are of lower face value. Older people who are not in perfect health can easily avail for these life insurance for seniors policies because these policies were also especially designed for them.
The average expense for burials and funerals in the United States is about $8,000 dollars. For families who find it hard to come up with that amount of money, a senior insurance policy may be the best way for them to afford expenses for such. If arrangements regarding a funeral were previously been made, getting a senior insurance policy is still a good decision because it is a way for the senior to leave some cash for his or her children or grandchildren.
Distributing an estate fairly to children can be ensured through a life insurance policy. If for example, the owner of a business has three children, he or she can plan on leaving the business to one of his or her children and cash settlement for the remaining two children in case he or she passes away. Another example is that the policyholder has two children and one of his or her children lives with him or her in one house. The policyholder can plan on transferring the ownership rights of the house to his or her child that lives with him or her then cash compensation for the other child.
For people who are aged over 65, life insurance is a way to transfer wealth to beneficiaries without paying any tax. The benefits of this over 65 life insurance are most of the time not taxed. It is a good way for their children to inherit money.