Senior living is often high cost; aging in place at home is expensive too. Hence, before letting the sticker shock turn you away from the bountiful gains, let’s closely examine the significant factors influencing senior living costs and the value affecting these charges.
Final Expense Life Insurance
Based on your age or needs, final expense life insurance might work well for you. Perhaps you don’t have kids who require a big inheritance, or you cannot afford the significant premiums of typical whole-life insurance. However, you seek to fully monitor all your living expenses rather than leaving these bills for your loved ones to pay.
Usually termed “burial insurance” or “funeral insurance,” it’s a form of whole life insurance specially crafted to meet all remaining expenses you have finally, inclusive of old medical bills or funeral bills. Several final expense policies are deemed inexpensive life insurance as coverage may usually begin as low as $15 every month.
Funeral expenses can bill up to $9,000, but holding even a small final expense policy in place may help your kin meet these charges.
As the premium and coverage amounts don’t often vary for whole-life policies (if you submit the premiums), final expense insurance is a good option if you are above 50 or if your health declines. However, the longer you defer the purchasing of a policy, the more costly it may be, and the greater likelihood your health may decline. Locking in a budget insurance rate when you’re in optimum health might conserve many bills for you in the future.
Final expense life insurance often provides smaller coverage than alternative insurance policies, rendering this lower cost and easy to meet requirements.
As the coverage amount remains less than many other forms of life insurance, several final expense policies don’t need a medical exam for eligibility. Most policies may get issued based upon answers to health questions over the insurance submission.
Term Life Insurance
Term life insurance only extends over a “term.” That implies you must apply for (and qualify for) a new policy each time the term expires. For instance, when you buy a ten-year term life insurance policy, you no longer hold life insurance when it expires.
The issue with this form of policy for people over 50 is double. It gets more challenging to qualify for term life insurance as your health declines, and each new term grows more costly as you’re older every time you renew your term. Term premiums may rise by thousands of dollars based on your renewal age.
Also, many term policies do not aggregate cash value.
Here are several general price guidelines for term insurance bills.
Whole Life Insurance
Usually, whole life insurance is the best for people above age 50. The coverage or premium often stays the same in the policy’s life if premiums get paid, and several plans may aggregate cash value that can be used in the future. Whole life insurance is usually termed as “permanent insurance” as you do not have policy terms or you do not need to re-qualify.
Universal Life Insurance
A universal life insurance policy might meet all your retirement financial needs or costs if you seek a permanent life insurance policy like the actual life products but with much greater flexibility.
Medicare, Social Security, and Guaranteed Minimum Income
If you’re worried about finances after retirement, many safety-net programs are available in the United States to ensure that seniors will be taken care of. With Medicare, Medicaid, and Social Security, retirees should have health insurance and a guaranteed minimum income.