If you are approaching retirement, you may start to think it’s not necessary to be considering life insurance for seniors over 75. Despite this, we encounter a lot of reasons why people in this age group would be considering purchasing life insurance.
Life insurance for seniors over 75 can give you the peace of mind for multiple different thing, and many different options exist from term life insurance to more permanent insurance solutions.
If you are looking for life insurance for seniors over 75, we are here to help.
When you reach 75 years of age, multiple financial decisions will have to start being made. Many of the clients we work with don’t feel turning 75 is much of an event as far as financially, but many different financial plans start getting made in this time period.
When you are 75 years old, you may already be taking required minimum distributions, since they are mandatory at age 72 1/2. This means you will have to start taking money from any tax deferred retirement accounts you may have if they fall within these rules. Many people become frustrated by this because they don’t need the income yet, but they are still forced to take the money as well as pay taxes on the new stream of income.
You may not be thinking this has anything to do with life insurance for seniors over 75, but it actually does.
It incorporates in with life insurance because it creates a circumstance where you can increase the legacy for your heirs. If you are someone who doesn’t need to take the income yet from your RMD’s then you may be thinking about leaving this money as a gift. This is where you can use these new funds to pay for a sizable life insurance policy in order to leverage your legacy money.
This not only leverages your premiums into a larger death benefit, but also puts the money back into the best tax situation available. When life insurance proceeds are distributed, they are done so tax free! In the majority of cases life insurance money is tax free, so you start turning tax deferred retirement money into a tax free legacy environment.
Life insurance for seniors over 75 can also be used for more common things, just as any other demographic who is purchasing life insurance. One of these main examples is that of a mortgage. Many people who are 75 still have a loan on their home which they would not want to leave to your family if you were no longer around to pay on it. This is a prime example of a great reason of purchasing a term life insurance policy.
If you still have some debts which you haven’t paid off, and you want to make sure your family members don’t inherit debt , life insurance is a great solution. Many different types of debts are transferrable such as personal loans, car loans, and of course credit cards. The other debt to consider is medical bills. Whichever kind of debt it is, you don’t want to pass it on to your loved ones.
When you pass away, many other bills pop up such as funeral costs. Many people choose to be buried, while others want to be cremated. Each one has costs associated with them. This is where the right solution may be a final needs life insurance policy. Before purchasing this type of policy, make sure it is the right solution for you.
One of the more common uses of life insurance for seniors over 75 is for paying estate taxes. If you have a sizable estate, these taxes will be due upon your passing. A life insurance policy provides to funds which can be used for your family instead of liquidating your estate. Many different options exist for this type of planning from term insurance to permanent life insurance.
Most of the people we work with who are over 75, have some sort of medical issue. This doesn’t always disqualify you for life insurance. It does however make it important for you to work with an independent life insurance agent. We work with over 50 life insurance carriers to be sure you are getting the best deal in industry, especially with a medical condition.
In order to start shopping for life insurance, you can use our life insurance quoting tool. Just put in some basic information and you can view quotes from multiple carriers. If you see what you like, you can even start the application process online. If you have any questions regarding life insurance for seniors over 75 please don’t hesitate to get in contact with us.