Perhaps you have come to retirement, have no dependents, and now feel senior life insurance coverage is unnecessary for you. You may be right. However, if, later on, you have accumulated debts and need them covered once you die, you may decide to get it done with senior life insurance coverage - or an alternative. Here's some retirement advice on various choices with senior life insurance coverage.
Senior life insurance coverage alternatives
Financial companies have found it profitable to offer insurance coverage to take care of financial debt you incur with them. Credit card organizations and banking institutions offer life insurance on your outstanding balances. This'll most likely cost you a few dollars each month. And when you die, this debt-based insurance coverage pays that specific debt in full. Occasionally they do this for automobile loans and always for mortgages.
Therefore if such debt-based insurance is a better alternative than spending for a normal senior life insurance plan to cover your financial debt, go for it. And if so, and you still have additional use for a regular senior life insurance coverage, make sure to subtract off the debt protected by your debt-based insurance from your projected death benefit needs for your normal senior life insurance policy.
Note that any policy offered to you which does not require any health review almost always costs more. Your minimum expense insurance policies always come from insurance companies who require looking at your health history and sometimes a health insurance examination.
Utilizing existing senior life insurance coverage
If you have a life insurance policy and feel you may want it to handle outstanding debts at your death (e.g. mortgage, credit cards, etc), then maintain it. Another reason to keep senior life insurance in retirement is to equalize your estate. Say you're leaving an asset that is difficult to divide, your house, to one son. You are able to leave the senior life insurance benefit to the other son thereby "equalizing" your estate and eliminating hard feelings or arguments.
Obtaining a new senior life insurance coverage
Should you worry about qualifying for new senior life insurance coverage to fulfill you're needs?
Yes, if you want a policy more than say $50,000 of death benefit. When this happens, your health will determine qualifications. Your medical record isn't a concern for a small coverage. You have seen those late night television advertisements from AARP and Colonial Life on buying a $50,000 policy regardless of health. The will cost you a whole lot but they will sell a coverage to anyone. If your health is acceptable, then have an insurance agent shop for better prices on your behalf.
Liquidating existing life coverage
When you've got coverage in retirement and no longer require it as you do not have debts or estate equalization concerns as explained above, you then can either surrender it to the insurance firm or sell it to a third-party (called life settlement). Just consult your insurance agent about each options and to get you the quotations.
Disclosures about life insurance coverage
The acquisition of senior life insurance coverage involves costs, fees, expenditures and possible surrender costs (should you give up the policy later) and depends on the overall health of the candidate. Not all candidates are insurable (except for cases where the insurance company provides a no-health evaluation coverage).