Life insurance policies are fairly straightforward. You purchase an insurance policy, pay the premiums, and leave a secure life for your loved ones in the event of a natural or untimely death. However, many Americans are either uninsured or have inadequate coverage.
According to a recent LIMRA survey, more than 41% of adults who were both insured and uninsured expressed concern about not having enough life insurance coverage. The study also discovered that single mothers and younger parents were more likely to purchase life insurance.
We have always seen apprehension in elderly people seeking insurance coverage when they have their basic needs covered. For example, if a couple owns a home and has Social Security, they may not consider purchasing life insurance.
However, in some cases, paying for an event can become excruciatingly expensive. That’s where life insurance can be highly beneficial in alleviating any unexpected financial burden. There is nothing like being too old to invest in proper and adequate life insurance to support your spouse and dependents. Insurance coverage is available for every age group.
Life Insurance Coverage for Extra Protection: How Does It Help?
Assisted Living Expenses
One of the most beneficial applications of purchasing a life insurance policy in old age is the provision for assisted living expenses. Often, elderly people are unable to live on their own and require special care, sometimes 24 hours a day, seven days a week. The average cost of staying in a care home in the United States ranges from $7,000 to $9,000 per month, depending on the type of room chosen or the city you are in.
Such high costs are easily covered by life insurance, and the policies can be used to pay regular expenses for care facilities. After the passing away of the policyholder, the life insurance money passes to the beneficiary.
Burial Expenses
Although you are well covered as a senior citizen and have no significant expenses, let us face it, funeral costs can have a considerable impact on the otherwise regular expense quotas. According to the World Population Review, the cost of a funeral in the US can range between $6,000 and $16,000. This puts the average funeral cost somewhere between $7,000 and $9,000.
There has been an evident jump in how much a person can get as Social Security, but the highest possible benefit is $3,627 as of 2023. So, it is undoubtedly wise to opt for an adjusted life insurance policy, which can help cover burial expenses so that no loved one gets to feel any sort of financial burden upon sudden or natural demise.
Leftover Debts
This can be a back-breaker for sure. When a person takes out loans that they haven’t been able to repay while alive, it creates serious problems for the ones left behind. It is difficult to use your life savings to pay off these debts.
Life insurance is an excellent way to deal with this situation. If a person chooses a life insurance policy, the insurance coverage pays the beneficiary after the policyholder’s death (natural or accidental). With this money, the beneficiary can easily repay all their outstanding debts without disrupting their daily routine or cash flow.
Support to Dependent Child
It is ideal for retirees with no loans or mortgages to feel content with their Social Security benefits. However, some parents have to take care of their dependent child due to their young age or disability. Life insurance is an excellent option if both parents pass away and the child is left on their own or if one parent dies and the other is unable to continue caring for the child as they would like.
Purchasing a life insurance policy can be a great way to pay for your child’s healthcare, education, and any special needs if a financially responsible parent passes away.
Estate Planning
It is difficult for any individual to plan all aspects of their estates, assets, and other personal belongings. Whether you want to leave an inheritance to your loved ones or give money to a good cause, life insurance is a great option and a simple way to handle everything.
With proper life insurance, federal taxes can be paid, and wealth can be distributed correctly and smoothly. A few of the most important questions to consider are whether you own a business or not, what the portion for healthcare should be, and who all get to become beneficiaries. Depending on all these factors, a suitable life insurance policy can be purchased to ensure the smooth transfer of estates and benefits following the policyholder’s death.
So, What’s the Way Forward?
It is critical to consider all aspects of insurance and coverage before deciding what you do and do not want. To do this, you must conduct a risk assessment so that you can choose from the best options available. Gonzalez Insurance assists individuals and business owners in conducting a comprehensive portfolio analysis. We recommend the most relevant policies and coverages needed, ensuring that you are never under or over-insured. Contact us to learn more about risk assessment or to receive a customized quote.