NEW YORK, May 2, 2022 (Newswire.com) - iQuanti: As you get older, it can seem like life insurance becomes less important. Your kids may have moved out, or you may have paid off your mortgage. But there are many benefits of getting life insurance if you're over 50. For instance, it can help your beneficiaries pay for your end-of-life expenses, pay off debts, or even cover your children's or grandchildren's college.
Life insurance has become an increasingly popular option for customers across the U.S. In the first three quarters of 2021, life insurance sales saw an 18% increase, with sales growth records in the second and third quarters. If you're considering life insurance quotes over 50, read on to learn why you should consider getting a policy for your loved ones.
1. Can help dependents replace your income
If your spouse or family depends on your income, a life insurance policy can be an excellent investment. Life insurance can provide a significant payout to replace your income if you die so your family can continue to maintain a similar standard of living.
2. Can cover funeral expenses
Planning a funeral can be exhausting, emotionally draining, and expensive. If you pass away, a life insurance policy can help your family cover your funeral and burial costs, which can help alleviate stress as they mourn. Similarly, your loved ones can use a life insurance policy's death benefit to cover other end-of-life expenses, such as medical bills and long-term care costs.
3. Can help pay off debts
When you die, the responsibility of paying off your debts may be passed to your estate. If you still have debts like auto loans or a mortgage, your estate will typically be used to pay them off, leaving fewer assets for your heirs. A life insurance policy can protect against this. It provides a guaranteed sum of money your beneficiaries can use to pay off your debt in order to receive more of your estate. Plus, they may use some of the death benefit to pay their own debts, providing them with more financial security.
4. Can fund your children or grandchildren's education
You typically can't name a minor child as a beneficiary on a life insurance policy. However, you can set up a trust for your children or grandchildren and designate the trust as a beneficiary. A trust gives you control over how your death benefit is used. You can specify that the trust pays your spouse a stipend to use specifically for education expenses, such as tuition and textbooks, or to invest in a college savings account.
You could also arrange for the trust to hold onto the death benefit until your child or grandchild is an adult, then have it pay a specific amount regularly. This provides funds to use for their education without handing them the entire death benefit at once. If you choose to go this route, it's recommended to work with a CPA or attorney to get help and ask any questions you may have.
The bottom line
There are plenty of excellent ways to use life insurance over 50, especially for estate planning purposes. It can help your spouse and any other dependents replace your income and cover your funeral expenses. Plus, they can use it to pay off your and their debts, maximizing your estate. You can even designate your death benefit to fund your children's education. You may have to pay a little more for life insurance over 50, but comparing insurers and gathering several quotes can help you get the coverage you need at a rate within your budget.
Source: iQuanti, Inc.