subject: Elder Life Insurance Choices [print this page] Elder Life Insurance Choices
Why do elderly people consider life insurance anyway?
When you think of this type of insurance, you may only associate it with younger people who buy it to protect their growing family or cover a home mortgage. But just because a person has passed age 50, 65, or even 80, does not always mean that they have outgrown their need for coverage!
Here are some of the uses that older people may have for coverage. If you are an older person shopping for a policy, or if you are shopping for an older person in your family, it is important to understand why you want to buy life insurance anyway!
Estate Transfer - A policy is one way to transfer wealth to the next generation. It may have some great tax advantages over other ways. It can also be an affordable and sensible way to plan for this. So a policy can simply be a way to leave money to future generations. It can also be a way to leave money to a favorite charity or foundation.
Business Use - Many business owners are older people. They can use a policy for multiple business reasons. It might be a way to compensate some familymembers who will not run the business. It might be a way to make sure the business can stay running if an important (key) person passes away. It may simply be a way to help secure financing.
Burial Policies - These are smaller face value whole life policies that are used to cover end-of-life expenses. They are popular with people whohave modest assets, and for whom the costs of funerals may be quite severe.
Cash Value - Some life policies actually grow a cash vaue They can be used as assets while the insured person is still alive.
Of course, the type and amount of coverage will depend upon what you want to accomplish with your policy. A burial policy may only be for about $10,000 worth of coverage while business transfer policies may be for hundreds or thousands of dollars or more!
When you decide what you want to accomplish, it will be much easier to find the right policy for you.
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