How Does Senior Life Insurance Work for Entrepreneurs?

You hear so much about life insurance. Life insurance policies are designed for families who have dependent children and other financial obligations. It is meant to provide financial protection for your family in the event of your unexpected death.

As you get older, however, your life changes. This means that your life insurance needs change, too. Especially if you are an entrepreneur or are self-employed.

There are several insurance companies that are responding to these changing needs by offering senior life insurance, but just how does senior life insurance work?

What is Senior Life Insurance?

When you’re younger, you have a number of financial obligations. You might have young children. Perhaps you’ve just bought your first home and are paying a mortgage. You might also have a loan out on a car. Your family depends on your income. Should something happen to you that results in death, your spouse and children could be stuck in a precarious position. Not only do they have to worry about paying for your funeral, but then they also have to worry about making payments so they don’t lose their home and other possessions. Life insurance is designed to help provide your family with the financial stability they need while they grieve your loss.

When you’re older, your needs are different. Your children are likely grown and financially independent. Your mortgage and car are paid off. Your debts are most likely less than what they were in your younger years. Senior life insurance is designed to meet these needs. Often called burial insurance or final expense insurance, senior life insurance is there specifically to cover the costs of your funeral as well as the cost of any debts that you may leave behind.

Why is Senior Life Insurance Important?

Even though your children are grown and you likely don’t have the same financial obligations you once did, there is still one expense that often goes overlooked. While most people don’t like to think about it, death is an unfortunate inevitability. The cost of a funeral service and burial is expensive. The national average for these costs range between $7,000 and $10,000. These costs can be a shock to grieving family members. For many families, funeral costs can be financially devastating. Senior life insurance, however, is there to cover all costs associated with your funeral, which then allows your family to give you the funeral and burial you want and deserve without leaving them in a financial bind.  It’s also very affordable and you can find some good websites selling final expense insurance quotes online.

How Does Senior Life Insurance Work?

Senior life insurance is designed specifically for older adults. It is a type of whole-life policy, but is not the same as a traditional whole-life. Where traditional life insurance policies are meant to replace your income, senior life insurance is just meant to cover funeral costs and other end of life costs. They do not have an age limit, unlike term life insurance, nor do they require a medical exam. They may request a copy of your medical records, but most senior life insurance companies offer guaranteed acceptance. Senior life insurance policies are meant to provide anywhere from a few thousand dollars to $25,000 or more.

These policies build cash value over time and generally pay out quickly, which helps to ease the financial burden on your family. There may, however, be a waiting period, which means that the payout slowly increases over time until it reaches its total face value. When shopping for senior life insurance, make sure that you get multiple quotes. While all senior life insurance policies are meant to cover end of life expenses, what each company offers and how much coverage will cost varies greatly. Multiple quotes will help you to get the best policy for your needs at the most affordable cost.

Even with fewer financial obligations and your children fully grown, the cost of a funeral can be a significant burden. Senior life insurance helps to ease that burden, which can provide some relief during an otherwise emotional time. You and your family can rest easy knowing that finances are protected following your death.