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Surprising things life insurance for seniors can cover

Senior couple tourist standing by lake in nature on holiday, hugging.
Life insurance for seniors can help cover a variety of items. Getty Images

Life insurance provides financial security for beneficiaries when the policyholder has passed and - depending on the type of policy - a cash reserve for the insured to use while alive. In exchange for a monthly fee to an insurance provider, policyholders can gain peace of mind knowing they have protection should the worst-case scenario arise.

While there are varying groups and demographics that benefit from having a life insurance policy in place, seniors are usually left out of the discussion. The cost of a life insurance policy for an older adult can be prohibitive relative to the amount of coverage they can secure (think under $50,000).

But, like all financial products, the benefits of a life insurance policy are relative to the individual's personal circumstances and goals. For some seniors, a life insurance policy may prove to be worth it. That's why it's beneficial to know what a senior life insurance policy can help cover.

If you're in the market for life insurance then start by getting a free online price estimate now so you know exactly what to expect.

Surprising things life insurance for seniors can cover

Life insurance can be used for a wide variety of items. Here are three surprising things seniors may not have realized a life insurance policy can cover.

End-of-life expenses

Some seniors may want to secure a life insurance policy to help cover end-of-life expenses. A policy for, say, $20,000 can pay for all (or most) expenses like a wake, funeral and burial and it can be secured for a minimal charge to the insured. It will also be beneficial for relatives and loved ones since they won't have to pay those charges on their own.

A death in the family is already hard enough. You won't want to add financial burdens into the mix. Fortunately, a cost-effective and reliable life insurance policy can help eliminate those concerns.

If you think you'd benefit from having a life insurance policy that can cover end-of-life expenses then start by getting a free price quote online now

Outstanding debt

If you're a senior with outstanding debt and are concerned that it will be inherited by your loved ones then you may want to get a life insurance policy that helps reduce - or even pay off - that figure. 

Again, the amount of money a senior can get from a life insurance policy depends on a variety of factors. So, they may not be able to get a robust policy. But maybe they can secure a commensurate amount to what they owe now - or will owe after they have passed. 

That can help both meet the goal of paying off the debt and provide comfort for the insured while alive by knowing that their loved ones won't have to deal with it in their absence. 

Estate taxes

Estate taxes vary depending on where you live in the country. But, after you have died, your loved ones may get stuck with an estate tax to pay when they receive their inheritance.

Fortunately, a life insurance policy can be utilized to pay this cost. First, try to get as accurate a figure as possible to determine how much of a tax your heirs will inherit. From there you can apply for a life insurance policy in a similar amount to cover the charge. 

As mentioned above, you don't want to leave your loved ones with added financial burdens, if they can be avoided. A life insurance policy built to cover estate taxes, however, can help.

The bottom line

This is not an exhaustive list. Life insurance for seniors can cover more items and services than those just listed above. It can also serve as an inheritance for beneficiaries.

However, if you're a senior concerned about covering end-of-life expenses, transferring debt to loved ones or any potential estate taxes in your absence, then life insurance makes sense to have.

Start exploring providers online now or use the table below.

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