Why Is Life Insurance Essential for Seniors?

The majority of people believe that once you get into your senior years, your obligations decrease, and life insurance becomes unnecessary. However, contrary to what most people think, senior citizens can also benefit from a life insurance policy. 

Furthermore, there are plenty of other life insurance options available for seniors to ensure that surviving family members are not saddled with a financial burden. Life insurance for seniors can help pay for things such as loss of income, funeral expenses, medical debt, and more. 

Therefore, even a relatively inexpensive term life insurance policy is a good option for a senior citizen who needs to ensure that their family won’t be left to cover these expenses. In this blog, we discuss why seniors need life insurance and the benefits to getting one.

Why Seniors Need a Life Insurance Plan?

There are a lot of reasons why seniors should obtain the protection that life insurance covers. In some cases, seniors still have debts and liabilities that need to be covered. 

Let’s accept that death is an inevitable part of everyone’s life. However, it comes with some expenses. Thankfully, with a life insurance policy, you can lessen the final costs. Below are some of the essential things that a life insurance policy for seniors covers.

Final Life Expenses

In case you didn’t know, the average cost of a funeral and burial can reach up to $15,000. Fortunately, with a life insurance policy, you can help your family honour your life without passing the burden of your final expense.

Remaining Bills Expenses

A life insurance policy can also cover remaining mortgage payments, medical bills, credit card balances, additional debt, and income loss.

Supplemental Income

A final expense life insurance has a cash value policy that can help supplement social security benefits.


Life insurance can also allow your beneficiary benefit from your life insurance coverage. You can give a tax-free financial gift to your children/grandchildren. Therefore, even if you’re not with them anymore, your presence will be felt — financially.

Peace of Mind

A final advantage of a life insurance plan it’s that it provides you and your family with peace of mind. Knowing that there is financial assistance available when it will be needed the most is a relief.

Benefits of Life Insurance Policies to Seniors

Still wondering why seniors need a life insurance plan? The benefits we discuss in this section will help you make an informed decision. 

Covering Funeral and Burial Expenses

Most people of all ages get a life insurance plan to assist with funeral costs and burial expenses. Many of us worry that when we pass, there may not be enough money to cover all the funeral expenses and burial expenses. Besides, we do not want to pass all the burden and costs to our family. By getting an affordable life insurance plan for seniors, you can cover these final expenses. 

Securing and Protecting a Spouse and Children

Probably the biggest motivator behind getting a life insurance plan for seniors is the desire to protect a spouse, child, or other loved one. When a person passes away, they leave behind some unresolved bills and debts. These remaining expenses can be from a mortgage, vehicle, property or outstanding loan. Besides, if you have a family who depends on you financially, they may struggle to maintain a proper lifestyle without you by their side.

Some seniors also use life insurance plans as a way of leaving money to their grandchild. The money from the life insurance policy can be used to help fund a college education or business property.

Protecting Against Estate Taxes

Another thing is, some seniors with large estates that include huge residential property or expensive vehicles can use life insurance policy in transferring their wealth. Generally, the higher your net worth is, the higher your tax liability becomes. Therefore, seniors with a good life insurance plan can leave the next generation some money without worrying about the inheritance tax.

Mostly a whole or universal life insurance plan works best when it comes to transferring wealth. The main reason is that a permanent insurance plan allows for the accumulation of cash, the death benefit can also be used to cover taxes.


Choosing the best life insurance provider for seniors requires deep understanding. If you are thinking about getting a life insurance policy, ask yourself first who you are trying to protect. In doing so, you can ensure that the type of plan you select meets your specific needs. Also, you can consider the factors mentioned above if you seek a life insurance policy. 

If you plan to get a life insurance policy plan for seniors, visit Life Insurance Direct. We offer a wide variety of insurance plans that can cater to your specific needs. You can contact us today to discuss specifics by calling us at 1-844-922-1392 or sending a message to info@lifeinsurancedirect.ca.

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