Typically, life insurance is thought of for younger families—those with a child or two, a mortgage, or future college expenses. But once the mortgage is paid, the kids are gone, and you’re in your senior years, it’s still important to keep your life insurance in place.
Why Would a Senior Need Life Insurance?
Senior years can range anywhere from age 60 to age 85 or 90, maybe even older. So why would someone in that age range still need life insurance?
Think of life insurance as cash. The number one reason a senior would need cash in today’s culture is for long-term healthcare costs.
The Financial Impact of Long-Term Care
If someone or their spouse experiences a decline in health and needs long-term care—such as hiring nursing support or making medical-related modifications to the home—those costs can become very expensive. There are insurance products, such as long-term care insurance, that may help cover these types of expenses.
However, no one can predict how long someone may need long-term healthcare, which makes these costs difficult to plan for.
How Life Insurance Helps Replace Lost Assets
If someone is married and has assets—savings, a pension, or home equity—there may be enough to pay for the long-term care. But if a spouse spends that money, the question becomes: How does that spouse get that money back for retirement?
The use of life insurance in the senior years is to protect the surviving spouse, an estate, and beneficiaries from the depletion of those cash assets. Life insurance can then help replace that amount in a cost-effective way.
Contact MBhealth About Life Insurance
To learn more about how life insurance can provide protection during the senior years, call MBhealth at (314) 544-5400 or reach out via our website.
