Life Insurance for Seniors

You would not think that many seniors would be looking for life insurance at age 65 but with growing economic pressure and mortality rates extending longer than ever before, life insurance for seniors is at an all time high. Wanting Life insurance after age 65 and getting approved are two very different things. For one thing after age 65 your health issues have likely worsened and the older you are the more expensive the rates. One thing that deters seniors from purchasing life insurance is the belief that there health issues might be too severe for them getting approved with any Canadian life insurance company. If the senior uses a high risk life insurance specialist such as Lifeman Insurance in most cases using some very creative and simple methods the senior applicant can obtain a good notion of the likeness of approval and how much it might cost. The other option is a non medical insurance guaranteed issue product that usually has limited medical questions and means instant approval.

Why seniors buy Life Insurance?

Most seniors start thinking of buying life insurance to cover their funeral or burial costs. But even if you’re looking for senior’s insurance coverage it really is never too late. You may wonder how much a funeral costs now. I have been told that it can run as little 10 to 30 thousand. Can you imagine what it will cost in 20 years, with inflation and the cost of living rising steadily each year, how will many of us be able to bury our loved ones the way they deserve.

Seniors also use life insurance to protect their estate, such as a second property which would cover taxes that the beneficiary of the property would likely have to pay because it is non the primary residence which would have been protected from taxation.

Baby Boomers and their Children Beware

Permanent Life Insurance policies are slowly discontinued or being made too expensive to purchase. This problem will only get worse. The most common response from a senior is that they can just sell the house or use the remainder of the rrsp, or accumulated assets. Many fail to realize that the spouse who is still living needs a place to live, they need to survive with growing living expenses. Seniors are living longer not necessarily better, all of their savings and assets will probably be eaten up by a long term care or long term care facility. What does this mean for the children who are left holding the bag? When it comes time for burial, there is nothing left and this can cause turmoil in families. It can cause huge family rifts and turmoil because of arguments on which child will fund the expenses.

As a life insurance advisor it is actually shocking how many of the children have to bare the financial burden, and they want to make sure the same does not happen to their own family. Even if there was money left over for inheritance, after the division of assets, rrsp, capital gains, taxes, probate fees, it still poses a big problem.

Will the government pay for my funeral?

In 2020 the Canadian population will be comprised of 20 per cent of seniors. If you think the government will help fund your funeral, think about the financial strain that will be placed on the government in those years. With so many seniors to look after, likely in long term care facilities, you would think they will be up to their ears in debt. The only responsible thing is to educate your parents to make them see the reality of tomorrow. If you are reading this and you are in late 30?s with our own children in University, plus the added responsibility of helping out parents financially in a long term care facilities due to lack of funding. You have to ask yourself can we really shoulder this extra expense when something so small could have been prepared for.