Senior man looking into the horizon

Senior Life Insurance in Your Retirement Planning

Posted On Dec 03, 2021

Making a whole life insurance policy a part of your retirement plan will provide you and your family with financial peace of mind.

The purpose of senior life insurance is to help your family cover expenses associated with the end of your life. The money from a life insurance policy can help cover funeral expenses, mortgages, debts, medical bills, or other final bills.

A good retirement plan should provide you with the income you need during your final years, but not everyone will be able to save as much as they would like for retirement. Additionally, you never know what kind of unexpected things might happen and potentially derail your retirement budget. 

What is Life Insurance?

The two main types of life insurance are whole life insurance and term life insurance: 

Whole Life Insurance: Whole life insurance is also called permanent life insurance. When you purchase a whole life insurance policy, you have it from the time you purchase until the end of your life. The only thing you need to do to keep your whole life insurance policy is continue paying your premium. 

When you have a whole life insurance policy and you pass away, your beneficiaries will receive a death benefit. The death benefit is the amount of money the insurance company will pay the beneficiary when the policyholder dies. 

Term Life Insurance: Term life insurance is life insurance that you only have for a set amount of time. When you purchase a term policy, the length of the policy is decided at the time of purchase. Term life insurance policies usually range from five years to 30 years. 

If you pass away during the time you have a term policy, your beneficiary will receive money from the insurance company. If you do not die during the time you have a term policy, no one will receive any money.

Which Kind of Life Insurance Policy Do You Need?

A term life insurance policy may be a good idea for people who are still working. If you are young and in good health, a term policy can be a good way to get a large policy for a relatively low premium. The downside to term life insurance is that the older you are when you purchase it, the more expensive it will be. Your age when you purchase the policy will also determine how long the policy will be in effect. 

For seniors, a better option might be a permanent whole life insurance policy. The premium of a  whole life insurance policy is locked in for the life of the policy and nearly anyone can qualify. Even better, your coverage will only terminate upon your death. You won’t have to worry about outliving the term of your policy. Your loved ones will receive a payment that can cover the costs of a funeral or other final expenses. 

Life Insurance as Part of Your Retirement Planning

For most people, retirement means adapting to an entirely new budget. Your regular income will likely be replaced by Social Security benefits and whatever else you’ve managed to save through investment accounts, retirement accounts, savings, and maybe a pension.  

However, research shows that most Americans have not been saving enough for retirement. What’s even more shocking is that nearly one quarter of Americans have no retirement savings at all. For many people, this means perpetual financial struggle during retirement. When they die, their family will be left to cover any financial obligations left behind, as well as figuring out how to pay for the funeral. The average cost of a funeral is between $7,000 and $12,000. This can put a significant strain on families. 

This means that when you create your retirement budget, it’s probably a good idea to factor in the cost of a permanent whole life insurance policy to cover your final expenses. The benefits of a final expense whole life insurance policy include: 

  • You can purchase up until age 80
  • Nearly everyone can qualify (medical exams are not usually required)
  • Your beneficiaries will receive a payout upon your death to help cover final expenses
  • Affordable premiums
  • Your policy may accumulate a cash value after a certain amount of time
  • Your rate will be locked in for the life of the policy

If you don’t want your family to be burdened with your final expenses, consider an affordable, permanent whole life insurance policy. 

Turn to Americo Senior Life for Your Whole Life Insurance Needs

Americo Senior Life specializes in final expense whole life insurance and can help you find the coverage right for your situation. We also have a 30-day money-back guarantee, so there’s no reason to put off purchasing your life insurance policy. Apply online today and get pre-approved in minutes.