| The reasons for buying any kind of life insurance | | | | benefits when the death is from natural causes. |
| are always personal. What makes perfect sense | | | | This is to prevent the writing of "deathbed" |
| for one person may not add up for another. For | | | | policies that insure patients who are terminally ill. If |
| example, a 65-year-old man wants to buy a | | | | the insured dies within the first two years of the |
| million dollar life insurance policy. He doesn't have | | | | policy, most insurance companies will pay the |
| to insure against lost income. He doesn't need to | | | | beneficiary the premium amounts plus interest as |
| pay off his home. He just wants to leave behind a | | | | a death benefit, but not the full face value. |
| large amount of money for his family. It's his | | | | Accidental death-from an automobile accident, for |
| dream. Since he can afford it, it's his choice. | | | | example-is covered as soon as the policy is |
| Life insurance usually is intended to maintain a | | | | written. |
| family's lifestyle in the event that one or both of | | | | Another unconventional type of policy is the |
| a family's wage earners dies prematurely. Most | | | | single-premium life insurance policy. The premium |
| seniors do not have to worry about this. The | | | | is paid upfront in a lump sum and covers the |
| vast majority are no longer providing for their | | | | policyholder until death. Depending on the age of |
| children. Many have already paid off their homes | | | | the policy holder, the death benefit can be two or |
| or have sold them for a profit and moved into a | | | | more times the amount of the single premium. |
| more affordable housing. The traditional reasons | | | | Since life insurance death benefits usually are |
| for life insurance may not apply, but some | | | | exempt from estate taxes, many seniors use a |
| untraditional ones may. | | | | single-premium life insurance policy as a tool to |
| Some seniors are concerned with final | | | | pass on wealth to their heirs tax-free. |
| expenses-funeral and burial costs. These costs | | | | Some single-premium policies can include a |
| have risen dramatically in the last decade or so. | | | | provision to pay for certain kinds of medical care, |
| Some seniors who thought they had saved | | | | such as nursing home care or hospice care. In this |
| enough for final expenses or had a small life | | | | sense, the policy functions as a kind of long term |
| insurance policy to cover them are finding that | | | | care insurance. Any money remaining in the death |
| they might come up short. They can take out | | | | benefit at the time of the policyholder's death is |
| final expense policies. Generally small, some final | | | | passed on to the beneficiary. |
| expense policies do not require a physical. They | | | | Most seniors do not need life insurance for the |
| are known as "guaranteed acceptance" policies. | | | | traditional purpose of income replacement, but |
| To minimize risk on the guaranteed acceptance | | | | some seniors decide that life insurance is a tool |
| policies, insurance companies often require a | | | | that can help them realize their final goals and |
| two-year waiting period before paying full death | | | | dreams. |