Life Insurance Gaining Popularity with Older Americans
The recent uptick in seniors and older Americans purchasing life insurance has some people scratching their heads. Why would older people suddenly begin purchasing life insurance?
After all, in most cases life insurance has been purchased by younger parents who want to protect their children should they suddenly pass away, or by adults looking to establish a safety net for their loved ones until their retirement takes effect.
But life insurance has been gaining popularity among older Americans in the last year. Why? The answer depends on a couple of factors, including the recent economic downturn, taxation issues, and the recent trend in older parenting and involved grandparenting.
First and foremost, many people have found themselves feeling uncomfortable investing in the stock market after the Wall Street Debacle of 2008. Life insurance is often far more reliable than many of the investment portfolios considered "moderate risk."
This is particularly the case with term life insurance. However, many life insurance companies only offer whole life insurance to older Americans and seniors. In those cases it's still possible to choose a stable insurance policy, you'll just need to choose wisely, speak with your broker about your needs, and hang on to your policy for at least 10 or 15 years.
There are also taxation issues to consider. Whole life insurance is a form of life insurance that also offers an investment vehicle that isn't subject to taxation the way that other forms of investment are, or will soon be.
For investment savvy seniors, placing savings into a well constructed whole life insurance portfolio could be a smart way to save money for themselves and for their loved ones in the event of their passing.
Also, for wealthier seniors and older Americans a life insurance policy is a good way to provide financial support for your family should estate taxes prove to be overwhelming or simply too expensive.
Finally, many older Americans are interested in life insurance because they want to provide for younger children or grandchildren in their absence.
In recent years, there has been a surge in the number of grandparents who act as part-time or even full-time caregivers to their grandchildren. These older parents and caregivers often turn to life insurance as a means of financially protecting their children and grandchildren.
It's important to remember that there are several types of life insurance, and it isn't uncommon for scam artists to target seniors for insurance policies that they don't need. If you are an older American interested in life insurance, it's important to do some research, and to work with a licensed broker whose reputation is reliable.
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