Currently, the world has more seniors than it has ever had at any other time in human history. This is attributed to improved lifestyle and living standards. It has created the need for new insurance products to help fulfill the desires of the elderly people. Taking life insurance for 88 year olds is considered as one of the greatest investments you can ever make. It covers the life of the elderly and helps them to prepare for death.
Besides, it secures families and provides funds to cater for funeral expenses. Also, such a cover enables the family of the deceased to receive a lump sum payment upon the demise of the insured. The family can use the money to pay off debts and start income-generating projects.
Note that there are other investments such as pension programs that provide funds in the old age. But the funds are always inadequate. They may not provide enough financial security for the elderly.
Thus, the elderly need a reliable life insurance cover to give them the financial freedom they need in their old age.
Available Options at 88 Years
Life insurance options for the 88-year-old may be a little bit expensive. This is always the case when compared to those available to people in their 70’s. Even though, there are plenty of options to choose from. What counts is the service you want the policy to offer to you.
Here are the Options
Guaranteed Universal Life Insurance
It is a good option available to the elderly. With this policy, the beneficiaries get the benefits upon the demise of the insured. It is better than the whole life policy because the premiums are affordable.
It also gives you the freedom to choose whether the policy should end at a certain age or continue until you die.
Thus, it is the best policy if you are looking forward to leaving a legacy to your family. It will also assist in defraying your final funeral expenses.
Whole Life Insurance
The policy is designed to last for the entire life. The good thing about it is that you will be required to pay the same premiums for the rest of your life. And when you die, all the death benefits are paid to the beneficiaries.
Also, the policy allows the insured to borrow against its cash value to pay for hospital expenses.
But, the policy is more expensive. Thus, you may consider the cheaper guaranteed universal.
Universal Life Insurance
The cash value of the policy accumulates over time. But, the amount that may be available depends on how the investments perform. If they underperform, you will be sure that the insurance premiums will increase.
It is also possible to use the policy to borrow money. But, if you die before completing the repayment, deductions will be made from the benefits. This is a risky policy for the elderly but it can help them build up a reasonable amount of cash value.
Final Expense Insurance
It is available to anyone wishing to give the family a peace of mind upon death. The cover provides funds to cater for funeral costs and medical expenses. It is cheap and can be bought at any age.
Why People at 88 Years of Age Need A Cover?
In the later stages of life, having a strong financial backing is critical. Even when you have some savings, it is possible to be diagnosed with a serious illness. If the illness requires more money than you have in the savings account it can be disastrous.
It is a big setback which can leave you without money to meet your send-off expenses. But, with a life insurance policy, bills and funeral expenses will no longer bother you.
To Support Them in the Remaining Part of Life
It is possible to work up to 65 years. But, the savings and the money you get from your employer and the pension schemes may not be enough to cater for your needs. That is why people of 88 years need an insurance policy.
It can help them accumulate cash value to use as collateral when borrowing. With these cash values, the elderly can borrow loans with low interest rates. The good thing about these loans is that they do not require a credit check.
In most cases, the money borrowed is tax-free. Also, some policies can earn dividends which are normally paid after a certain period. Such payout can be used to defray some expenses.
Medical Related Debts
Emergency medical treatments such as major operations are expensive. They are now causing more financial stress to families. Seniors who do not have life covers end up in financial crisis and in some cases, they get declared bankrupt.
A life insurance policy can help you avoid all this. It will insulate you against medical bill debts. You will be allowed to access a fraction of the policy’s face value to help pay for the medical bills.
Raising a Family
A senior that gets into a second marriage may have a younger family that needs to be catered for when they die. Also, if they are parenting grandchildren the benefits can come in handy.
Such seniors need to secure the lives of the family even after they die. Life insurance is one of the options that are available. The guaranteed benefits are available to take care of the children upon the death of the insured.
In some cases, tough economic times may make it difficult for adult children to make ends meet. If such adults are supported by the seniors, they can rely on the guaranteed benefits.
Seniors who take a mortgage in the late stages of their lives are likely to face foreclosure. Such elders need an insurance policy to help raise money to pay for the debt. Upon their demise, the benefits paid to the family can be used to offset the mortgage.
Why Life Insurance Is More Relevant in Modern Life?
Coverage Through Work is Unreliable
Many people enjoy coverage through work. Unfortunately, such covers cease when they get laid off. It can leave them exposed especially if they live past the 88 years’ mark. So, buying a long-term insurance policy will give you enough money to pay for expenses in your old age.
Leaves Children with a Buffer
Seniors who start a second marriage in their later years need a life insurance cover. It reduces the chances of leaving the family broke when they die. It is hard to predict the future. So, having this policy can help to sort out funeral expenses and leave the children with some cash.
Can Save Your Business
The employee life insurance policy is critical. It can protect the company from losses when one of the most valuable employees dies.
For instance, in a case where the sales and price of the stock are dependent on the employee, the company may suffer heavy losses when the employee dies. But with a life insurance cover, the company can be kept afloat for a while as it reorganizes itself.
It Comes in Handy for Stay at Home Parents
In modern times, the cost of paying for a nanny and a handyman to do a few repairs and keep the home neat are high. In most cases, parents choose to have either of them to pursue a formal career.
The other parent remains at home to take care of the children. If the parent who stays at home dies, it may be difficult for the working parent to raise money to pay people to do this work. But a life policy would provide the funds required to take care of the domestic chores and keep the home neat.
It Gives Peace of Mind
An inexpensive life insurance cover is all you need. It gives members of your family a piece of mind if the cruel hand of death comes calling. It also helps 88 years old not to worry about future financial needs. They stay knowing that they will keep their lifestyle no matter what happens.
With a permanent life insurance cover, one is able to increase their cash value with time. They can borrow against this policy tax-free. It is a good source of income that may be relied on to supplement retirement if other investments fail.
Factors That May Affect the Cost
It is true that life insurance can be used to protect the beneficiaries financially. It can be a big investment over the years since lower premiums can help yield bigger savings. But the cost of insurance policies can be affected by many factors.
Some of the factors include:
It is one of the most critical factors to consider when determining the cost of a policy. Young people make payments over several years before cashing it out. So, they are likely to enjoy lower payments compared to the 88-year-old.
Women have a longer lifespan compared to men. So insurers will always consider the gender before they decide on the payments to be made.
Thus, since women are likely to pay premiums for a longer time, they are likely to pay less. Most insurance carriers offer women lower premiums compared to men of the same age.
If the persons to be insured smoke, they are susceptible to ailments of all sorts. As a result, insurance companies charge a higher premium to smokers. Therefore, kicking out the habit as you prepare to take a life policy cover could help you.
The process of underwriting includes an in-depth medical examination. Metrics such as diabetes, cholesterol and blood pressure are considered. If you chose no exam policy, you are likely to pay higher premiums.
Family medical history and how you spend your free time are important factors. Also, your past driving record is considered when deciding the premium you should pay.
Other Options of Protecting Your Future
If you are a senior citizen, life insurance may be too expensive for you. So what other options do you have? You can decide to buy other care insurance policies. The options include funeral expense and longevity insurance. Funeral expense cover takes care of funeral costs. On the other hand, the longevity cover ensures that you don’t outlive your savings.