If you don't already have a life insurance policy, it is a
good idea to get some kind of coverage. Baby Boomers
are likely to live longer and pile up some debt towards the
end of their lives. Life insurance can help to pay
this off, leave your wife mortgage-free, or provide funds to
your loved ones. If nothing else, a small term life
policy is beneficial just to cover funeral expenses.
Baby Boomers - Term Life Insurance is the Way to Go!
 For
Baby Boomers, renewable term life insurance makes a whole
lot more sense than a whole life policy. You get a lot
more coverage for the money, but don't build up any
"savings" to be paid off at your debt. Who cares?
Invest the difference in premiums and earn a lot more!
New York Life has partnered with AARP to create a good
program for its members:
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No physical examination is required.
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Coverage begins within 30 days.
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Coverage (from $2,500 to $50,000) cannot be
canceled.
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Rates are reasonable. For example: male,
age 55-59, $50,000 coverage; nominal rate is $74.58 monthly.
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Guaranteed level monthly premiums for five year
periods.
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Premiums are waived if you are confined to a Nursing
Home.
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Half the benefit can be immediately accessed if you
are diagnosed with a terminal illness and have less than 12 months
to live.
Note that it is best to get term life insurance while
you are still healthy and in your forties or fifties, as entry rates
increase dramatically thereafter. But as the AARP program
demonstrates, even those up to age 74 can still get a term life policy
without a health exam (although they do ask questions on the application
here a "yes" answer to any inquiry will probably raise the rate or
result in a phone call for clarification purposes).
Baby Boomers can online to get quotes from brokers that
deal with a number of insurance companies, and prime among them is
SelectQuote.com. This is a good way to
shop term life insurance. Be advised, however, that any
health-related information you provide to get a fast quote becomes part
of a large database accessible by all insurance companies and God knows
whoever else.
Accidental Death and Dismemberment Insurance
The Insurance Dictionary defines Accidental Death
Insurance as:
Coverage in the event of death due to accident, usually in
combination with dismemberment insurance. If death is due to accident,
payment is made to the insured's beneficiary; if bodily injury is the
result of an accident (such as the loss of a limb), the insured receives
a specified sum.
However, there are "gotchas" to most AD&D policies.
According to
Insurance.com, "To receive benefits in the event of an accident,
your injuries or death must occur within a time frame of three months
from the accident date. Only if your death or injuries can be proved as
being a direct result of the accident, will you be able to collect off
your AD&D coverage." And that, my friend, is why life
insurance companies have huge staffs of attorneys.
The bottom line for baby Boomers:
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AD&D insurance is dirt-cheap (e.g., under 410
monthly for a $1 million policy)
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It provides a nice nest egg for your spouse or loved
ones in the event you suffer a clearly accidental death (e.g., car or
plane crash).
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If you are spending $10 monthly on the lottery, buy a AD&D
policy instead - your odds of "winning" are better.
Long-Term Care Insurance is not Feasible for most Baby
Boomers
The average cost for long-term care at an assisted living
facility is $77,500. This could quickly deplete most
retirement nest eggs.
 In
an article,
Boomers Reluctant over Long-Term Care Insurance,
Patti Neighmond points out:
The risk of needing some kind of long-term
care is high. Two-thirds of seniors will need it at some point
in their lives. But they will mostly need it only for short
periods. Just one-fourth of individuals over 65 will end up
needing long-term care for one or more years.
Baby Boomers also are often mistaken about how long-term
care may be paid for. Many think Medicare will cover
long-term care costs. The fact is, it won't. Medicare pays
for short-term medical care at home or for a limited stay in
a nursing home, but only after a hospitalization and only
after a number of criteria are met. Medicaid pays for
long-term care, but not until people have already used up
the majority of their financial assets.
The bottom line for Baby Boomers is:
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Your chances of needing long-term care are 25 percent or
less.
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Long-term care coverage for the vast majority of Baby Boomers in
their fifties and sixties is simply not affordable.
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You don't know if the coverage you buy today will be there when
and if you need it, or what public programs might be implemented in the future.
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