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Five Reasons Why Seniors Need Life Insurance

We hear it time and time again – life insurance protects your family after you pass on. So, why do seniors need life insurance? Once you retire and your mortgage is paid off, won’t your savings be enough to take care of final expenses? The truth is, seniors need life insurance even if they are no longer earning an income. Today we will look at five reasons why Canadian life insurance for seniors is necessary.

Seniors are living longer

Thanks to innovations in health care, life expectancy for Canadians continues to rise. What is not keeping pace with this rise in expectancy is quality of life. The longer we live, the more health-related issues occur. While a senior may have taken every precaution to live without debt and to pay off a mortgage, a heart attack, stroke, serious fall, diabetes, or any other health issue could mean co-pays on expensive medication, having to hire a private nurse, or even a move to a nursing facility. Savings could quickly be eroded, leaving your survivors with nothing for final expenses when you pass on

2. Capital gains are in play

One of the joys of retirement is spending time at that cottage on the lake or that property in a warm climate. When you pass, Canada Revenue Agency deems you to have disposed of your assets. If that cottage or other property does not pass to a surviving spouse or is not in a tax-saving framework, your estate could be hit hard with capital gains tax – in addition to any tax owing on your final tax return (which is completed after you pass away). Canadian life insurance for seniors can help pay for these final expenses.

3.Funerals are expensive

The average cost of a funeral in Canada is $8,500, but it can easily be much higher. Every aspect has a fee associated with it: the flowers, the obituary notice, the body transfer, the casket, the burial plot, etc. In addition to these fees, one must also consider the cost of hosting out-of-town guests for the funeral, and even smaller things like ordering in meals if you are bereaved and not in a frame of mind to cook. Canadian life insurance for seniors can take care of funeral and final costs.

4.Added value 

Not every life insurance policy is about death insurance. Critical illness insurance is an example of a living policy because it pays the life insured, not the beneficiaries. To make a claim, the life insured must be suffering from an ailment listed in the policy. This could be a heart attack, stroke, or even some forms of cancer. The diagnosis does not have to be terminal, it just needs to meet the conditions in the policy. Treatment for serious illnesses, especially cancer, is very expensive. While Canadians enjoy a robust health care system, it does not pay for driving back and forth to cancer centres, carers, and respite. Depending on where you live, medications may be an out-of-pocket expense too. Critical illness insurance is a gamechanger, providing money upfront to be used however you wish, be it a bucket-list trip, to pay off debts, or to pay for medication.

5.Leave a legacy

Sometimes there is money in place to take care of final expenses, no debt, no mortgage, and no expensive illness. However, there may not be money left to provide assistance for your grandchildren’s education or a donation to a cause that means the world to you. Many seniors are comforted knowing their final act is something that will benefit others for years to come. For this reason, some Canadian life insurance for seniors’ policies function as legacy funds that are revealed to the fortunate recipients after the senior passes away. 

What is the best life insurance for seniors?

The best life insurance for seniors is one that fulfills a specific need, and that need is different for everyone. It could be final expenses, legacy building, or to offset the expenses of an unexpected illness. To get the best life insurance for seniors, work with a broker that has the ability to compare the market on your behalf and get you a quote that matches your needs and budget. Life insurance rates for seniors vary; brokers can sort through them all and find you the one you need.

#insurance for seniors