Why seniors should consider life insurance in 2023

January marks a good time for reflection. Many people use the start of a new year to review the previous 12 months to determine what worked and what didn't. It's also a good time to reevaluate one's personal finances for opportunities to grow and, where appropriate, for openings to save and cut debt in the new year.

For older Americans, many of whom live on a tight budget, this evaluation is especially important. There may be ways to save that they have not been taking advantage of. There also may be financial protections that they have yet to secure but would benefit from having now.

Life insurance is one of those protections.

While not traditionally considered a valuable product for older adults, relative to the cost typically attached, life insurance for seniors can actually be beneficial to have. This is particularly true if it helps meet financial goals and provides some additional economic security.

If you're considering life insurance then start by getting a free price quote so you know exactly what it would cost.

Why seniors should consider life insurance in 2023

Life insurance for seniors may not always be worth it. But, like any financial product, the benefits are particular to each individual. Here are three reasons why seniors should consider life insurance now.

It can help pay end-of-life expenses

Life insurance is often thought of as coming in exorbitant amounts ranging from hundreds of thousands to even $1 million or more. And while many providers will provide that amount of coverage, you may only need a small policy to cover end-of-life expenses.

These types of policies, which can be secured for a relatively low cost, can come in smaller amounts like $10-$20,000. That can be used to pay for things like a wake, funeral, coffin and other end-of-life expenses. It may not be pleasant to think about it - or to prepare for - but a life insurance policy that can cover these costs can be beneficial to have, particularly if you would otherwise leave these to be paid for by relatives and loved ones.

You can easily get a free price estimate now to see if this makes sense for you.

It can serve as an inheritance for loved ones

If you have little or no savings (and no home equity) to leave as an inheritance for loved ones then a life insurance policy could help fill the gap. Again, depending on your age, and other traditional influencing factors, the amount you can secure will vary.

For a 64-year-old male living in New York, Haven Life quotes a 10-year term life insurance policy in the amount of $150,000 at $98.74 per month. That's for a non-smoking male considered to be in good health. A female with all of the same characteristics is quoted at $70.11 for the same amount of coverage.

$150,000 for $70-$100 a month may be worth it for you, especially if you currently don't have much to leave your family. 

It can help pay off the debt you have

Life insurance is primarily designed to ease the financial concerns of loved ones and beneficiaries. One way you can do this is by purchasing a plan to help pay the debt you would otherwise have left behind for others. 

There are some debts that may end when you die, so it pays to do your research first. But there are other kinds that will remain no matter what. For example, if you know you won't be able to pay off your house in full while alive - but know that a life insurance policy could do it for you - then you may want to purchase a policy in that specific amount. This will insure that the home you leave to your family will be fully theirs and the value will be full (not minus any remaining payments to the lender).

Start by getting a free life insurance quote now to see how much it would cost or use the table below to compare some top providers.

The bottom line

Life insurance is generally beneficial for a wide array of adults. Seniors need to be more judicious, however, as the cost-benefit analysis isn't always advantageous. With that being said, if you're a senior looking for a way to pay end-of-life expenses, then it may make sense to buy a small policy. Similarly, if you want to leave an inheritance for loved ones or simply need a way to pay off the debt in your absence, a life insurance policy may be worth considering this year.