When planning for life insurance, seniors should spend some time thinking about exactly what benefit they need from the policy. Many times, people buy life insurance because they think it’s the right thing to do. Life insurance is a tool, and just like any tool, you must understand how to use it to achieve your expected outcome.

Most seniors who purchase life insurance do so to take care of their families in the case of their deaths. Many seniors have debt much later in life. Debt such as mortgages, car payments, and credit card payments will be settled with the estate, and in some cases, become the responsibility of the surviving spouse. The trauma and grieving that your spouse will inevitably go through is difficult enough. It is important for seniors to have a plan that will ease the burden of debt payments so their surviving spouse can live without fear of debt collectors.

Proper retirement income planning, coupled with the purchase of a good life insurance policy can ensure that any debts you incur will not be passed on to your spouse or heirs in the case of your untimely death. If done properly, you can have certainty that the things you have borrowed money for (your home, a car, etc) will stay with your spouse, and that any money left over in your estate isn’t eaten up by creditors. It can instead be used by your heirs to carry out your wishes.

Creditors will go after outstanding debts, whether it’s through your estate or going to the joint account holder (in most cases the spouse). Instead of having your partner encounter the harassment from your creditors, consider purchasing a life insurance policy that will cover any of your financial responsibilities, as well as take care of your spouse should you pass on.