Are you a senior wondering about what is the best life insurance? Perhaps, like many people, you owned term life insurance and it is coming up for renewal. This was purchased when your family was at home and the mortgage was higher. Now the kids are gone and the mortgage is lower or gone as well and here is this insurance coming up for renewal. What to do?
The best life insurance for seniors is a policy that provides an amount of cash on their death that accomplishes whatever they wanted to have happen when they purchased it. The first and least expensive would be a policy that would pay about $25,000, possibly less if there are budget issues, to ensure that the money used for the final arrangements is replaced. We find that this is the primary reason seniors buy life insurance.
Another equally good reason, depending on the budget, is a life insurance policy to benefit the ones they love. This could be a larger policy to top of their spouses savings as savings can go quickly in retirement and a top up is something we find is really appreciated.
Purchasing a life insurance on their children and grandchildren is also popular for those with surplus cash flow. If the pension and RIF payments exceed their needs and they are actually paying more taxes than they would like the purchase of a modest policy and over funding it creates cash that can be used for education or down payments in the future. It is a great legacy.
The use of life insurance to pass wealth to another generation tax free is a very popular strategy.
For some, the best life insurance for seniors who will have significant capital gains (they may have a cottage or properties to their children) is a life insurance policy to provide the cash to pay the taxes. Other seniors will purchase a life insurance policy to give to a charity which creates a tax credit that accomplishes almost the same thing but a charity benefits. This is a very interesting approach that is seldom used – everyone but the taxman wins with this strategy. Perhaps this is the best reason to buy life insurance.
Once the purpose of the insurance is determined, the best life insurance for seniors is the one that accomplishes this purpose at the best price taking into account any medical issues they have. IDC Insurance Direct Canada specializes in helping seniors buy life insurance by reviewing all the above and then choosing the best company and type of policy.