As lifespans across the world increase and older adults can expect to spend many more years in retirement, you may be wondering if it’s too late to buy life insurance. Your children are grown up and financially independent, you may not have many financial obligations, and you are relatively comfortable. However, there are still perks of purchasing life insurance for seniors, which we will share more about in this article.
Boost a Surviving Spouse’s Income
Did you know that once you start qualifying for a pension, you can choose whether your spouse gets a survivor’s pension in the event that you predecease them? If you do, the monthly amount you receive is reduced, however, you can enjoy peace of mind that your spouse will receive an additional income after your death.
Although this may sound good in theory, it only makes sense if your spouse outlives you for years, otherwise, there’s no financial gain and you may even stand to lose. When you get life insurance and opt for a single-life pension, your spouse will receive the insurance pay-out if you predecease them.
Benefits from Life Insurance Are Income-Tax Free
Upon your death, your estate passes to your heirs. This can be your spouse if they outlive you, your children and grandchildren, and even siblings or nieces and nephews. Did you know that legislation has eliminated the option for beneficiaries to stretch out distributions over their lifetime? This means that heirs who are not the spouse of the deceased person have to empty the IRA within ten years, and the larger amounts can meet the threshold for tax. If you wish to avoid this scenario for your heirs, keep in mind that death benefits from a life insurance policy are not taxable under income tax.
Can Be Used to Pay for Healthcare
With the huge advances we have made in medicine and healthcare, humans are living longer than ever before. You never know when you will need money to go towards your healthcare needs, and a life insurance policy can be a useful contingency plan. Some policies offer pay-outs that go towards covering the cost of long-term care in the event of a chronic illness, disability, or indisposition.
Enjoy Your Golden Years in an Independent Living Community
Has aging in place left you socially isolated? You should never underestimate the impact mental health can have on your overall well-being. When you are unable to access socialization opportunities from home or find yourself increasingly isolated, consider moving into an active independent community for older adults. At TerraBella Windsor Lake, our residents benefit from a safe and secure environment where they can enjoy a wide range of activities and events with friends and neighbors.
We understand that transitioning to senior living is a big change in your life and to this end, we want to help you make the most well-informed decision for your needs. Please feel free to schedule a tour of our stylish campus today and discover what makes us your top choice for senior living.