unexpected medical costs. It lets us know that if in an unfortunate event we’re faced with an illness or injury that requires long-term care, a portion (or sometimes all) of that cost – up to the coverage limit – can be covered by a life insurance policy.

But there’s more to life insurance than simply the security that comes from knowing our financial future is secure. There are a number of financial benefits for senior citizens when it comes to life insurance.

Tax Break

One of the greatest advantages of life insurance for senior citizens is the tax break. When a policy is held until its expiration, the earnings are tax free. On the other hand, if a policy is surrendered (i.e., the cash value withdrawn) then the options are either to pay the taxes on the amount withdrawn or place the funds into an annuity. In either case, the taxes are significantly lower than the income tax on normal income.

Living Benefits

Most life insurance policies also have “living benefits.” Living benefits exist when life insurance coverage is not purchased for the purpose of death, but for

Article Created by A.I.