Why Has Seniors Life Insurance Become Popular?
Insurance companies have never really pitched life insurance policy to seniors. Senior life policies are in fact one of the most profitable areas for insurance companies to venture into. The ideal clients for most of the insurance policies have been people who belong to a younger generation, have kids and mortgages to take care of. But the truth is seniors have been parents much longer that the couples of the current generation. Research shows that people are getting married late in life and as a result of this they become parents not before they're well into their 30s. With the increasing pressure on parents to pay for college and meet their kids' expenses, insurance companies choose to ignore this segment of seniors that now prove to be a highly potential yet untapped market to sell life insurance policies.
Seniors need to ensure that they're covered under some kind of life assurance policy. The rising costs of health care and the expensive medical bills to be paid make it mandatory for seniors to choose a policy that suits their financial position and savings. Life insurance provides the much-needed financial security during retirement and old age and is also an excellent vehicle for seamless and hassle-free transfer of wealth and assets. For those who have assets that can be easily liquefied, the policies aren't that important as they have some source of cash readily available in case of an emergency or for their immediate use. However, only a very small percentage of seniors have access to the necessary funds for retirement. People should not wait till they fulfill all their financial obligations to sign up for a policy. A periodic investment in a life assurance policy proves useful in the long run.
These policies permit seniors to choose a beneficiary or beneficiaries who become the sole owners of the funds and enjoy the benefits of the fund after the seniors' death. The single premium life insurance policy involves paying the insurance company a single lump sum amount. It comes with an added advantage of a death benefit guarantee. The entire amount is tax-deferred and is passed onto the beneficiary in the tax-deferred way. This policy is best suited for seniors who are above sixty five years of age, who want to leave their loved ones a fixed amount of money and also need enough funds to take care of their personal expenses.
by: Carina SmithAbout the Author:Life Insurance for Seniors has always been an essential tool in financial planning, but historically has been reserved for younger people who plenty of kids and a large mortgage. The myth that seniors don't need Life Insurance for Seniorshasn't kept up with the world we live in today. Let's discuss why.