8
MARCH/APRIL 2016
Do You Need Life
Insurance?
Study your options carefully
by Doris Dearen Settles,
Staff Writer
In a best-case scenario, everyone over age 60 has enough money saved to stay financially stable
throughout the remainder of their
lives. However, research shows
that is not the case, and today’s seniors have added responsibilities
that are unique to this generation,
such as full-time grandparenting,
caring for relatives or children
moving back home.
Most people haven’t been great
at saving even without these
added stresses. A recent Government Accountability Office
(GAO) analysis finds among
households with members aged
55 or older, nearly 29 percent have
neither retirement savings nor a
traditional pension.
“There hasn’t been a significant
increase in wages. People have
student loans and other debt, and
many are continuing to struggle
financially,” said Charles Jeszeck,
the GAO’s director of education,
workforce and income security,
which analyzed the Federal Reserve’s 2013 Survey of Consumer
Finances to come up with its
estimates. “We aren’t surprised
that people have not saved a lot
for retirement.”
Here are some interesting statistics about U.S. senior citizens:
• In 2009, there were 36.9 million
Americans over the age of 65.
• By 2030, there will be approximately 72.1 million Americans
over age 65.
• 29 percent of people over age
55 have no pension and zero
savings.
Even the 49 percent of
65-74-year-olds with savings have
less than $148,000. By anybody’s
calculations, with life expectancy
rising fast, that’s just not going to
cut it.
Life insurance can be a “lifesaver” in situations such as this
— providing a way for seniors to
protect their families from becoming financially burdened with endof-life or future living expenses for
a surviving dependent.
But the catch-22 is, when you
need it most, you can’t get it.
Fortunately, you do have options. Life insurance can cover
burial expenses, provide for dependents, cover the gap between
Social Security benefit changes
and outstanding debts such as
mortgages and even leave a legacy
for your beneficiaries.
Term life insurance is best,
insurance and estate planning
experts say. If you are between
ages 55-74, finding an affordable
$100,000 policy won’t be difficult.
But after age 74 it gets harder.
Life insurance benefits are paid in
the form of a lump-sum payment