Life insurance can be a helpful tool at any age. But seniors, in particular, can see many benefits.
The right life insurance policy can help them protect their partners, assist their loved ones, pass down more wealth to their heirs, and cover medical care costs in retirement.
This article will dive into a few circumstances where seniors could benefit immensely from a life insurance policy.
1. Those with a partner
If you have a partner, life insurance can be a critical financial safety net for them if you pass away early.
The death benefit helps them finish paying off any debt you have left, such as a mortgage or auto loan, and supplement their retirement assets. Furthermore, it can help them cover end-of-life expenses, such as medical care and funeral costs.
This is especially important if you plan to pass most of your assets down to heirs — the life insurance death benefit can help you protect your partner without compromising your estate planning.
2. Those who want to pass down wealth to heirs
Life insurance can help seniors pass down wealth in a few ways.
First, the death benefit is tax-free, making life insurance a potentially powerful piece of an estate plan. When you pass away, your heirs receive more of your wealth since they won’t have to pay taxes on the death benefit.
Another way to pass wealth down is through a permanent life insurance policy’s cash value growth component. Some of each premium goes into this component, which grows tax-deferred at a specified rate.
Once it grows enough, you can borrow or withdraw from it. This could offer you a substantial pool of wealth to help pay for your children’s or grandchildren’s college and help them in other ways financially.
3. Those who have medical and long-term care expenses
Healthcare planning is a vital component of retirement planning. You can qualify for Medicare at 65, but it may not offer enough for all potential medical situations.
A life insurance policy with living benefits can fit into your plan here.
First, the cash value can offer additional funds to cover medical expenses through borrowing or withdrawals if needed.
Beyond that are policy riders, such as the long-term care rider. This rider lets you tap your death benefit while alive if you experience a qualifying injury or illness. As a result, long-term care costs won’t strain your or your partner’s budget.
Life insurance can help seniors in many situations
If you’ve ever asked yourself, “when should I get life insurance?” the answer is generally as soon as possible, especially if you’re a senior.
Life insurance helps seniors protect their partners by helping them pay off debts, supplement retirement assets, and cover end-of-life expenses.
It can also be crucial for maximizing your estate plan. The tax-free death benefit lets you hand more wealth to your heirs, and the cash value provides a way to help loved ones financially while you’re still alive.
A life insurance policy can also assist with senior healthcare needs. The cash value can cover expenses that Medicare and other plans don’t cover. In contrast, a long-term care rider can help you access your death benefit for qualifying illnesses and injuries.
Examine your current circumstances to see how a life insurance policy may fit into your financial plan.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Term & Whole Life (B60000 series) In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Life (68000 series) In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In New York, NY68100-NY68400. Coverage may not be available in all states. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations and exclusions. For complete details, including availability and costs, please contact your local Aflac agent.
Aflac coverage is underwritten by Aflac. In New York, Aflac coverage is underwritten by Aflac New York.
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