Wednesday, June 22, 2022

Do You Need Life Insurance After 65

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Affordable Life Insurance For Seniors

How to Dump a Whole Life Insurance Policy : Life Insurance & More

In general, final expense insurance is typically the most affordable because you can buy a policy for as little as $15 a month. Final expense plans are perfect for seniors on a fixed income or for those who may have trouble qualifying for larger policies.

When deciding how much senior life insurance you can afford, be sure to consider your entire budget and any future changes that may impact your finances. Some may look for the cheapest life insurance available, but many times these policies arent meant for seniors. Choose a policy with the benefits most likely to help surviving loved ones.

The cost of your policy will depend on your sex, age, overall health, and the coverage amount youre taking out. If your goal is to ensure you dont leave behind your funeral costs for your loved ones, you only need a final expense insurance policy. But if you want to leave something more to your beneficiary, a term or whole life plan may be better if you can afford it.

Should You Keep Paying For Life Insurance After Retirement

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Conventional wisdom suggests you dont need life insurance during retirement. By this point, the children are likely grown and financially self-sufficient and youve amassed a sizable enough nest egg to make life insurance superfluous.

Or so the thinking goes. But before you dump your policy, it pays to take stock of your financial situation and carefully consider your long-term goals. Only then will you know if youve got enough insurance, or too little or too much.

Sometimes life insurance makes a ton of sense to keep and sometimes it makes no sense, says Bob Gavlak, a certified financial planner and wealth adviser with Strategic Wealth Partners Ltd., a registered investment adviser in Independence, Ohio. Sometimes its a matter of getting a more appropriate insurance strategy in place, given that your goals, objectives and financial circumstances have changed.

Among the factors to consider: how much youve saved versus how much debt youve accrued; your financial obligations; your income-replacement needs; your health and how long you expect to live; your tax situation; potential liquidity issues; legacy-planning goals; and charitable-giving desires.

Ideally, financial advisers recommend that people evaluate their future insurance needs a few years before retirement, to optimize the timing of any changes they want to make.

Doing heirs a favor

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Considering health
Better alternatives

Find Affordable Life Insurance For Seniors

As a 65-year-old life insurance applicant, youre going to pay more for life insurance coverage versus what a younger person is going to pay, but there are several ways that you can get more affordable insurance premiums.

Making some changes could drastically increase your chances of getting approved for an affordable life insurance policy.

Are you a senior interested in getting a great term life insurance policy? When youre ready, feel free to contact us at 800-712-8519 ;for a quote or use our quote form on this page to get instant life insurance quotes.

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Other Factors To Think About

Think through any major costs or events you may want life insurance to cover. For instance, if you carry a home loan when you retire, you may decide to keep your life insurance. You could do this so that your loved ones will not be in danger of losing their home after your death. They can keep paying for the house even after you’re gone with the proceeds of your policy. Also, if you want to ensure that your childrens or grandchildrens schooling is paid for even if youre not around, life insurance is one way to do so.

Best Life Insurance Options For Senior Citizens

Do You Need Life Insurance After 65 : A Beginner

The best life insurance for people over 60 years old will depend on your financial situation, health and life insurance needs. When entering your senior years, it is a great idea to think about the remainder of your life to consider if you have enough life insurance coverage and if there are better options available.

Applicants in their 60s will find there are few eligibility restrictions for life insurance. However, not every policy will be right for your situation and thus it is important to evaluate if you need life insurance for short-term or long-term needs. A short-term policy, like term life insurance with lengths of 10 to 20 years, can be great if you are still working and need income protection. Longer term life insurance, like a permanent policy, may be a better choice to cover final expenses like a funeral or burial.

We would not recommend standard whole or universal life insurance, as these products are expensive and are meant to be lifelong products that build cash value. Since you would be in the later stages of your lifetime, you would not be able to take advantage of the cash value growth.

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You May Need Life Insurance After 65 If You Have Significant Financial Obligations

While many individuals aim to pay down their debts and financial obligations before they hit retirement age, this isnât always possible. If you find yourself approaching the age of 65 and you still have debt, then keeping a term or permanent life insurance can be an effective way of protecting your spouse or loved ones in the event of your death.

Can You Buy Life Insurance After Age 65

Luckily, many life insurance companies offer policy choices to people of almost any age, including life insurance for seniors. Some insurers offer term policies to people in their seventies and offer whole life policies to those up to age 85, so it may be easier than you think to find a life insurance policy that offers you peace of mind.

While most people can purchase a life insurance policy, its important to learn about the different kinds of policies available to people 65 years of age and older. That way you can understand all of your available options and choose the right type of life insurance for yourself and your loved ones, no matter your age.

Once you have a grasp of what you want, and how life insurance for seniors will benefit you, it will be easier to choose the best senior life insurance for your situation.

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You Have A Complicated Marriage/relationship Situation

There are certain situations in which it might make sense to consider life insurance due to your marital situation. For example, in some cases, a person is not eligible to receive his partners pension should he or she die.

If you fall into this category and your partner would have trouble supporting himself if you were to pass away, you may want to consider keeping your life insurance.

Once again, this decision comes down to a number of factors including your health, the health of your partner and his ability to support himself should something happen to you.

The decision regarding whether to keep your life insurance policy in your 60s is complicated, and you should definitely get professional support. The most important thing is to make this decision consciously.

Dont keep your life insurance just because you have always had it. You may end up spending more on premiums than your survivors could ever hope to receive.

At the same time, dont think that you automatically need to get rid of life insurance just because you reached your 60th birthday. Take the time to look at your personal situation and make an informed decision.

Remarrying Or Reaching Common

Do You Need Life Insurance After Retirement?
  • Is your new spouse, common-law partner and/or dependant child eligible to be covered under your group insurance benefit plans?

    If you have opted for coverage under the Public Service Health Care Plan or the Pensioners Dental Services Plan as a survivor, you can apply for coverage for your new eligible spouse, common-law partner and/or dependant children.

    In general, an eligible spouse or common-law partner means:

  • the person to whom you are legally married or your common-law partner .

In general, an eligible child includes an unmarried child of a member, of the members spouse or of the members survivor , including a stepchild, an adopted child and a foster child for whom the member stands in place of a parent.

To be dependant, the child must be:

  • under 21 years of age;
  • under 25 years of age and attending an accredited school, college or university on a full-time basis; or
  • incapable of engaging in self-sustaining employment by reason of mental or physical impairment and is primarily dependant upon the member, provided such impairment occurred by the ages indicated above.
  • How can you apply for group insurance benefits for your new spouse, common-law partner and/or dependant child?

    To apply for:

  • The Public Service Health Care Plan :
  • Changes can be made to your positive enrolment information by visiting the Sun Life Member Services website. Alternatively, you can request a paper positive enrolment form by contacting Sun Life.
  • The Pensioners Dental Services Plan :
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    Changes To Ohip Coverage

    In the past two years, the Government of Ontario has introduced many changes to OHIP. First, the Liberal government introduced some measures to expand the program. The highlight of OHIP+ was prescription medication coverage for people under 25.

    OHIP+ also expanded senior OHIP coverage. Beginning in August 2019, the province would cover all prescriptions for senior citizens. Before, the government had offered seniors a co-pay arrangement.

    Under the co-pay, seniors would pay a $100 deductible at the beginning of the year. The province would then cover most of their prescription medications. The level of coverage depended on their income.

    Seniors with low incomes would pay only a $2 co-payment. Seniors with higher incomes paid $6.11 per prescription.

    Some pharmacies didnt charge the co-payment. Low-income seniors paid nothing and others paid $4.11. This arrangement didn’t cover all prescription medications either.

    Senior advocacy organizations announced their support of changes. Even though only some medications were covered, lower fees would help many seniors.

    If You Are Leaving A Charitable Legacy

    You will also need the more costly cash value policy if you purchase life insurance for the purpose of leaving a charitable legacy, Simmonds said.

    “Instead of making annual donations to your college of $10,000 a year, for example, you could buy life insurance worth $500,000 and pay the premiums with the equivalent of that annual donation,” he said. “Many large charitable organizations are urging supporters to consider a gift of life insurance.”

    If structured correctly, Simmonds explained, the life insurance policy can benefit both you and the recipient of your gift.

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    Do I Need Life Insurance In My 60s

    This is a question many of our clients ask themselves. There are several special considerations for people who need life insurance in their 60s. Your best bet is to find an underwriting expert that can not only give you a great quote but also expert guidance to go along with that quote.

    Buying life insurance in the autumn of your life is different and unique. If a life insurance agent is giving you the same advice that they give to a 28-year-old in good health, you need a new agent!

    We are here to guide and navigate you through the special considerations for people who need and buy life insurance in their 60s. Since this is likely the last life insurance policy you will ever need, its imperative that you get it right.

    We will cover these questions in detail:

    Life Insurance Options In Your 60s And 70s

    Life Insurance

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    The value of life insurance to a young parent, homeowner or married couple is fairly clear. For healthy applicants, the cost is low and the choices are abundant. If you die unexpectedly, your family will be able to pay bills, send the kids to school or just manage the costs associated with your burial with less financial strain.

    Things get more complex when you consider life insurance for older buyers. Many people in their 60s and 70s may no longer . They may have already paid off the house, stopped working and sent the kids off to care for themselves.

    Sometimes buying or maintaining a life insurance policy over age 60 makes sense. Whether you decide to double down or drop coverage, your retirement years are often a good time to reexamine your life insurance. Here are some of the options.

    As you enter your 60s, you might find you need life insurance as much as ever. Maybe:

    If you didnt purchase life insurance in your 20s, 30s or 40s and are hoping to get a policy now in your 60s or 70s, you might find yourself in a tough position. increase as you age, and any health problems youve developed will make it more difficult to find an affordable policy.

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    Would It Help Your Estate

    Some people with considerable assets can use life insurance strategicallyfor instance, as a way to take care of estate taxes. It could pay off business debt, fund any buy-sell agreements related to your business or estate, or even fund retirement plans.

    As you can imagine, how you use life insurance as a tax-efficient part of your estate plan is very complicated. Youll need the help of an attorney who specializes in estate planning. Keep in mind that unless you have an estate that reaches into the millions of dollars in net worth, estate tax considerations probably dont apply. You, therefore, may not need life insurance for this purpose, but to be sure, its a good idea to ask a qualified expert.;

    If You Are In Debt Or Still Working

    For retirees who are still paying off large loans , a guaranteed level-premium term life policy is ideal, said Scott Simmonds, a fee-only insurance consultant in Saco, Maine.

    But the key is not to overinsure. To minimize premium costs, he suggests considering a term life policy that expires when your payments are scheduled to end and to obtain just enough coverage to extinguish that debt.

    “Life insurance in retirement might make sense if you have a fair amount of debt that you don’t want to burden your family with,” Simmonds said.

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    Term life may also make sense if you continue to work during retirement, even part-time, to supplement your savings and wish to protect your spouse from the loss of your income when you die, he said.

    It all depends on how much you earn and how much your savings falls short of your income needs. Generally speaking, though, you should cancel your policy immediately if your spouseâfor whom the policy was intended to provide a financial cushionâdies before you, he said.

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    Life Insurance For Senior Veterans

    All veterans who were enrolled in the Servicemember Group Life Insurance plan during their service have the option to convert this life insurance policy into Veterans Group Life Insurance when they return from duty. This can be a good option early in your life. However, once you age into your senior years, you would be able to get better rates through other types of life insurance. For example, for a male 60-year-old enrolled in the VGLI program with $400,000 in coverage, the monthly premium is $432, which is $226 more than a similar policy offered by Prudential. For this reason, if you are a veteran who recently turned 60 or are entering your older years, we would recommend looking into an affordable term life insurance policy.

    Prescriptions Ohip Doesnt Cover

    Life Insurance for Seniors Over 65 Years

    Seniors drug coverage under OHIP is guided by the Ontario Drug Benefit program. The ODB includes a database of 4,400 medications the province will pay for.

    This means some seniors wont be able to access coverage for some of their prescriptions. If your medication isnt in the ODB, the province likely wont cover it.

    You can apply to the Trillium Drug Plan if your medication isnt covered by the ODP. The Trillium plan helps Ontarians who have high medication costs. It also assists in cases where medications are necessary, but uncovered by ODB.

    In most instances, the province prefers generic medications over name-brand medications. If you need the name-brand, make sure your doctor notes this on the prescription. Otherwise, the province may not extend coverage.

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    Basic Life Insurance Need Calculation

    You can also determine your life insurance need with a pencil, paper and this basic equation:;

    = Your life insurance need

    Heres what you might include in financial obligations you want to cover:

    ; Income replacement: Multiply the salary you want to replace for the number of years you want to replace it. You want this income replacement to cover current and future expenses.

    ; A mortgage: You can include the balance of a mortgage so your family can stay in their home without fear of losing it. If income replacement would already cover mortgage payments and other expenses, no need to add more mortgage money.

    ; Other large debts: Would your family struggle with other large debts if you passed away unexpectedly? If so, add those in.

    ; Childrens college tuition: Add tuition money to ensure your children can pay for college if you were no longer around.

    Heres what you could include in existing assets that can be used toward bills:

    ; Existing life insurance: If other life insurance is already in place to provide a financial cushion, subtract that amount. Be careful about relying on supplemental life insurance from work thoughsince it doesnt go with you if you leave a job, you cant be sure youll have it later on.

    ; Savings: Subtract any savings your family would use to pay expenses. You can include retirement savings such as a 401 plan, or leave it out of your analysis if your beneficiaries want to preserve that amount for retirement years.

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