By the time you reach retirement, one hopes that they've gotten their mortgage paid off. Pensions, social security and investments become a person's only income. With the rising price of gasoline, heating fuel and groceries, people are spending more money than ever and, therefore, are unable to invest as much as they need. If you are trying to get by on a limited income, you need life insurance payments that are affordable.
Having life insurance coverage by the time you reach your retirement age (typically 65 years old) is important. By the time people retire, their estimated life expectancy is only ten to twenty years. There is no magical age when someone will pass away, so it's best to be prepared no matter what age you have reached. If you pass away, how will your spouse or significant other survive without you? If you haven't purchased a prearranged funeral, will they have enough money to make sure you are buried or cremated as desired?
Right now, the average cost of a funeral in the US is $7,800 not including cemetery fees. Cremations are around $2,000 to $4,000.
When considering a life insurance policy, you must add in these expenses to the money you feel your spouse or significant other would need if you did die. Most life insurance agents suggest multiplying your yearly income by ten and purchasing a figure close to that amount.
Purchasing life insurance when you are a senior citizen, or already over 65, is more costly, but it still is possible. You can start by doing an Internet search and researching different life insurance companies and their rates. You'll find that the rates vary. Women pay less than men, and healthy adults at their target rate pay less than those who are overweight or have an illness like diabetes. Smokers pay far more (3-4 times more) than non-smokers and those with a history of cancer or heart disease pay more.
One of the best places to start your Internet search is with AARP. AARP was organized to help ensure retirees and the elderly are given benefits that do not penalize them for their age. AARP works with New York Life to come up with the lowest possible life insurance rates. They also have plans that allow you access to a small percentage of the insurance benefit if you become terminally ill. This can really help with medical expenses.
Retirement is meant to be a stress free time of your life. You are no longer stuck behind a desk waiting for the day to end. Instead, you fill your days with hobbies, new adventures and relaxation. Don't let a lack of life insurance fill your thoughts with worry!