Life Insurance for Baby Boomers

life insurance baby boomersIn the coming years, even more of the country’s baby boomers will be turning sixty five years of age and becoming eligible for Medicare benefits.

Earlier on in the decade, only a little over five percent of baby boomers were over the age of sixty five. That number will have more than double by 2013.

In total, baby boomers take up almost thirty percent of the population. Just in case you were unaware, baby boomers are people who were born in the period between 1946 and 1964. Times have changed greatly from the time that baby boomers came of age.

Retirement Decisions

Now, because of the suffering economy, baby boomers have to forge financial security for themselves, and this includes health insurance. Life insurance for baby boomers is essential because elderly individuals require health care twice as much as younger people. Many people who were born in the baby boomer age may think that they no longer need health insurance, but the need is even greater with old age.

If you are a baby boomer with term life insurance, it may be time to consider converting your life insurance to permanent life insurance. If you have a policy that gives your spouse an income for twenty years and five years have already passed, it may be time to change that policy to a permanent policy. For one, it can create a good savings vehicle.

The premiums will be higher, but for a good reason. With permanent health insurance you will have death benefits for the remainder of your life. Of course, converting to a permanent policy is a process that needs to be discussed with both your spouse and insurance company. You may even have to change insurance companies. All in all, it is a good decision, especially if you are an aging baby boomer.

Other Considerations for Life Insurance

Another thing to consider concerning seniors getting life insurance is securing an income for your family after your death. Any wealth that you have accumulated during your life will be taxed by the government after your death; as much as fifty percent. After paying that fifty percent, your family or beneficiaries will then have to pay even more in estate tax, if you estate has one. When your family receives their payout, they will then have to pay an inheritance tax. By getting an adequate life insurance policy, your family can be secured financially and have enough money to pay taxes when the time arises.

Those adult children of people who are baby boomers should discuss the issue of life insurance with their parents. It can be one of the most important conversations they ever have. It is important to plan while the parents are still in good physical health so insurance premiums won’t be higher and they have a better chance of getting insurance. It can be a good idea to get other family members involved to explain why obtaining a better life insurance policy will be beneficial for them and the entire family in the future.

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