Senior Insurance – Various Types
While everyone needs car, homeowners and health insurance, there are specific types of insurance that are very pertinent to seniors or retirees. These senior insurances are detailed below.
Senior Life Insurance
While the common reason to get life insurance is to replace income for the family should we die and our income stops, seniors or retirees are not dependent on their labor for income. Therefore, it seems that senior life insurance would be superfluous. But life insurance for seniors has other uses to solve other problems, such as providing liquidity at death, ease of estate settlement and division, create a pool of money for special needs, to create an estate and to pay estate taxes.
Senior Health Insurance
No one should go without health insurance. However, senior health insurance is different in that private insurance is required in combination with government coverage. A typical senior health insurance program would include Medicare to cover 80% of health care costs and private insurance, or Medigap coverage, to cover the other 20%.
While its true that a funeral can easily cost a lot, most people of any means have the financial resources to cover their funeral so special insurance may not be necessary. However, it is an excellent idea to have a funeral program structured so that your heirs don’t need to take on this burden at their greatest time of grief. It could make sense to combine your funeral arrangements with funeral insurance as a package that relieves heirs of all financial and funeral planning concerns.
Long Term Care Insurance
Typically, in our working years, we have disability insurance to provide income in the event of our disability. Since we are no longer working in our retirement, its wise to obtain long term care insurance in the event of disability due to age. Long term care insurance policies provide income to cover the extra expenses for the help you need for shopping, cleaning cooking, bathing, dressing, driving and getting round.
Settlement Life Insurance
Selling life insurance policies is a big business. Because many older persons believe that they no longer need their life insurance policies, they will sell it for cash. While its true that life insurance for the elderly is not commonly needed, senior life insurance has uses that coincide with estate planning and liquidity issues. We cover the issues to consider before you sell your senior life insurance.
As you see there are many types of senior insurance issues that apply specifically to retirees of those post age 65.