Why Do Seniors Need Life Insurance

Why Do Seniors Need Life Insurance

You hear all these talks about wanting to retire as early as possible and living the great life after retirement where there are no more employment responsibilities and just chilling with your family, traveling, and doing the things you could never do in your 20’s slaving away at your corporate job. Before it is all done, you have to make sure that everything is smooth and sailing before you reach that milestone.

Insurance policies are an important investment and part of seniors’ money management as they can cover your financial needs when you encounter difficult financial situations in your life such as getting sick and being confined to the hospital, or when you do not have enough income during your retirement. That is why seniors’ life insurance becomes more expensive as you grow older because insurance companies are also a business. The less likely you are to get sick or you are years away from your retirement then the less likely the insurance company needs to payout.

There are reasons why you do not have an insurance policy yet despite your age. It could be you were not introduced to it in your younger years, or you lost your insurance coverage due to a change of employment.

The good thing is that there are insurance companies that have programs and policies that specialize for seniors and their needs in their stage of life.

While they are still quite expensive compared to when you have purchased them when you are younger, the best life insurance should still offer competitive prices that can suit your budget, as well as good coverage that is specific to your needs as a retiree.

Whether you are thinking about getting your first insurance policy, or you are on your way to getting your second or third, it is better to be refreshed on why and how your insurance policy could provide you and your family peace of mind and financial security.

Here are the reasons why you should start investing in life insurance and how it could benefit you in your retirement days.


  • Life insurance will help protect you and your family from the unexpected. 
  • Breadwinners of the family are the best person to get life insurance to make sure the family’s secured from any financial trouble.
  • There are 2 different types of life insurance that cover different aspects of life. These are term and permanent life insurance. 
  • Having dependents makes it more necessary to have life insurance.
  • Insurance can help your retirement planning be more light and easy to manage.

Life insurance is an important part of your life

Depending on where you are in life your income is used to support the lifestyle you prefer and to maintain the standard your family is used to living.

If you are single, then your income could be supporting your parents or siblings who are still studying and in need of support. If you have a family and kids of your own, then your income is very important in keeping your family financially secure and making sure that your children are met with their necessities, and planning for their future as well.

Insurance is a very important part of your life no matter at what point you are in your years. Breadwinners of the family should be properly equipped with life insurance to make sure that your hard work is paying off and your money is going to continue to support your family and other dependents.

There are different types of life insurance that cover different types of needs such as healthcare, retirement income, protection from income loss because of accident, illness, or death.

Here is some type of life insurance that you need in your life:

Term Life Insurance

Term Life Insurance is a type of insurance that has a coverage limit of 10 years or more. 

Permanent Life Insurance or Cash-Value Insurance

Permanent Life Insurance is an insurance type that has lifetime coverage. Permanent life insurance has 2 types – Whole Life & Universal Life.

Whole Life

Whole Life provides a guaranteed benefit in case of death, and guaranteed growth or your cash value. What is great about Whole Life Permanent Life Insurance is your beneficiaries are secured in case of your death.

Universal Life

Universal Life gives the flexibility of changing the price of your premium payments and still provide a guaranteed minimum benefit in case of death. This minimum death benefit will apply and depends on the premiums you have paid. The good thing about Universal Life Permanent Life Insurance is you can have lower premiums or adjust your premiums according to your budget. It is more flexible than other types of permanent life insurance.

Life insurance to support your retirement

Your retirement is something you want to prepare for to continue living your life to the fullest no matter what age you are. This is why people set up retirement funds and apply for a social security program that could help them continue receiving income even after they stopped working. 

Insurance can work the same way. If you stopped working, then your income is cut off, and you do not want that for your retirement. 

You need to determine how much coverage you need when you retire. Do you want to keep living the same lifestyle, or do you want more or less as you age. Once you determine that then you would know how much you need to be saved up for your retirement fund.

Thinking about your retirement fund can really drain you when you think about how much goes to your savings instead of buying the latest gadget or making your current life lighter and more convenient. That is why social security funds and insurance can help you lighten the load by providing an ample amount of income once you retire.

If you think you have enough to live off during your retirement, you might think that you do not need any insurance anymore, but that should not be the case. Insurance is there as double security for you and your family. There is nothing wrong to double your security as long as you could afford it. It provides not just financial security but also peace of mind.

Paying off debt nearing retirement

Getting to your golden years debt-free is a goal everyone wants to achieve. That is the ideal situation but if it is not possible then insurance is something you need even before you near your retirement. 

Debt includes mortgage, loans, credit card bills, even the loans you co-signed with other people.

Having life insurance coverage when you know you are still paying off your debt in your retirement years is a good idea. 

The first is because you will not be able to save for your retirement fund as much as you would like. When paying off debts while trying to save can be challenging and in reality, you might not be able to reach your ideal fund goal. As they say, it is better safe than sorry, that is why it is always good to have a backup.

Second, having life insurance means that you will have something to hold on to in case you face financial difficulty in your retirement years.

Having Dependents

By your golden years, ideally, your family, your husband, and your children have their own financial dependence aside from your own income. But before you get there, of course, you will have dependents such as your children and grandchildren. And being a breadwinner, your income is supporting the family for their financial needs. It is important to protect that important aspect of the family’s financial security.

Insurance can help you protect that income, and give your family security and peace of mind. When you reach those golden years, you might think that you do not need any income protection anymore but this is something you cannot put into chance. That is why insurance is a great investment because you will need it one way or another. 

Dependents are protected under your insurance policy when you get ill or get in an accident, or pass away. They will not need to carry the burden of medical or funeral bills, and they will get the time to recover and recuperate from this unfortunate and unexpected event.


Insurance policies are created to help secure individuals and families by giving them a backup plan in case they face financial difficulties. Regardless of your financial standing right now, you absolutely need to fit an insurance policy in your budget. A few dollars spent on securing your financial stability in the future cannot compare to the possible loss you can encounter when something untoward and unexpected happens.

This is very much true for breadwinners, and all those who are working for a living. Rich or poor, we want to protect our stability, and capability to provide for our own needs as well as for our family. That is why no matter what age you are, whether you are young or going to your retirement it is best to be equipped and secured with an insurance policy that covers the aspects of your life that you care about. 

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