Life insurance for pensioners
[social_share]Life insurance is not always a popular option for pensioners. After all it is quite expensive due to reduced life expectancies and the fact that there are not the obvious dependents that there are when a person is younger.
There are good reasons why a person should still be interested in life insurance, whether the life insurance has already been taken out or whether the question is to decide if it is a good idea to take out life insurance.
If there is a life insurance policy in place then it is probably not a good idea to simply stop paying the premiums. Instead the policy holder should look at other alternatives. One of these is to simply keep on paying the premiums. This is because the value of the policy may still make it worth passing the benefit into the estate or to different beneficiaries.
Another alternative is to sell off the life insurance. In this way another investor gets to be named as the beneficiary and to make the payments. Due to a certain amount of value that has been added to the policy already, there may very well be some value that is in the policy. Investors are often prepared to buy these policies from the policy holders.
Another reason to have life insurance is if there is a spouse or partner who has a far lower entitlement to a pension. It is often a good idea for a person who is retiring to opt for a lower pension but with the pension rights being transferred to the spouse if the person dies before their spouse. However not all pensions have this option, and many of these pensions have already been chosen. In these cases life insurance can play a part in making up income.
Another role for life insurance for retired people is to pay for a funeral and meet other incidental expenses. This will mean that the funeral expenses will be met if there are inadequate savings. It can mean that there will be less stress for the survivors who will already be emotionally stretched.
If there are children that are being relied on for care or for some financial support it can be a very good idea to have some term life insurance. As the children will often be in their thirties or forties this insurance should be very cheap, assuming that there are no pre-existing medical conditions.
