Published on: September 10, 2024
Why is life insurance important for seniors?
Financial planning can become increasingly important in your senior years. A critical part of this planning may include securing a suitable life insurance policy. Life insurance can offer financial security for your loved ones after you die.
At Sun Life, we understand the unique life insurance needs of seniors. We offer a variety of policies that are suitable for this life stage. From term life insurance to whole life insurance, our policies can help provide you with peace of mind and financial security.
What are the benefits of life insurance for seniors?
As you grow older you may find yourself wanting to protect your loved ones in the event of your death. Here are some key benefits and reasons for why you should consider life insurance as a senior:
Provide funds for final expenses
Life insurance can help cover funeral costs, medical bills, outstanding debts, and other final expenses that may not be covered by other assets. This can help relieve the financial burden on your surviving family members.
Protect retirement income and assets
The death of a spouse can affect retirement income and assets if there is no life insurance. Proceeds from a policy can help the surviving spouse maintain their standard of living in retirement and provide funds to help pay taxes that may arise upon death.
Estate planning purposes
Without life insurance, other assets like the family home or investments may need to be sold to cover estate settlement costs. Life insurance can help protect these legacy assets from being sold off prematurely. Life insurance can also help equalize inheritances, pay estate taxes, or leave money to charity.
Legacy for heirs
You may want to leave something to your children and grandchildren. Life insurance allows you to do so in a tax-advantaged way versus relying solely on assets in your estate.
Life insurance options for seniors
Several options are available when considering life insurance as a senior. Understanding these different types can help you make an informed decision suitable for your needs:
Term life insurance
Term life insurance is coverage that lasts for a defined term. It can be a good choice for seniors who still have financial obligations like a mortgage or outstanding debt. You can choose how long you want your term policy to last, but coverage will end at age 85.
Whole life insurance
Whole life insurance can provide lifetime coverage and build cash value over time. A type of permanent life insurance, it gives your beneficiaries a tax-free payment after you die (called a death benefit). Your beneficiaries can use the money from the death benefit any way they want, including for final expenses and funeral costs.
Guaranteed life insurance
Guaranteed life insurance is a type of life insurance you can get without having to provide any medical details or answer any health questions. We guarantee your approval regardless of your state of health. Please note that if you die for any reason other than an accident within the first 2 years, Sun Life will not pay the claim. Instead, we will refund your premiums without interest, less administrative fees.
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