Life insurance is something that many people associate with young families that have children under the age of 18. However, life insurance is taken out by people of all ages in all kinds of situations. In fact, life insurance can be incredibly beneficial for older people, which is why special over 70s life insurance policies exist.
These kinds of policies typically offer guaranteed acceptance, which means you won’t need to undergo any medical testing to get them. But why would someone over the age of 70 choose to take out life insurance? Below, we list some of the main benefits of these types of policies and how they could improve your and your family’s life.
Peace of mind
As we get older, we often worry about our loved ones that we’ll be leaving behind after we’re gone. If you’re concerned about your partner’s or children’s financial security, life insurance could give you the peace of mind you need to fully enjoy your retirement. Even if you plan on leaving your loved ones money in your will, if you still have a mortgage or are a caregiver for someone, life cover will make sure that your family will have extra money to live a more comfortable life.
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Funeral expenses
Funerals can cost a lot of money and the burden typically falls on the family of the deceased. If you know your family will struggle to pay for your funeral, life cover could really help them out. Instead of using their own money or some of the inheritance you leave them to pay for a funeral, they’ll have a separate pot of money they can dip into. You may even be able to find a life insurance policy that covers funerals specifically. While the pay out for these will be smaller than other types of policy, your monthly payments should also be smaller.
Tax-free money
The money you leave to your family in your will could be subject to inheritance tax, meaning they’ll be left with less than you might think. An insurance pay out is usually tax-free, which could help your family pay inheritance tax on any properties or assets you leave them. However, if you’re concerned about your family having to pay tax on life insurance, consider putting your life insurance in a trust. This will mean the pay out won’t be considered part of your estate and therefore won’t be subject to inheritance tax.
Income protection
If you’re in your 70s and don’t expect to retire in the near future due to your financial situation, life insurance with income protection may be something to look into. As we get older, our chances of falling ill or getting injured increase, but if an accident or diagnosis leaves you unable to work, will you be able to live off the money you have? Life cover with income protection can help you to pay the bills even if you’re no longer able to work.
Ultimately, the types of benefits that life insurance has to offer later in life will depend on your individual situation. Cover for over 70s won’t be right for everyone, but if you’re worried about the future and aren’t sure how your family will cope without you, life insurance could be worth looking into.
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