The economic indicators show that the U.S. economy has recovered from the financial crisis eight years ago. But for seniors, one troubling sign remains: debt. Median debt for households headed by people 60 or older was $40,900 in 2013, vs. $9.038 in 1989.
If you carry debt in your older years along with assets that you want to pass on, your heirs may need to pay much of the debt off after you die. Credit card debt, business loans, unpaid bills and mortgages are among the most common. And that’s not counting other final expenses, including funeral costs.
A life insurance policy can help cover these expenses so that your hard-earned assets can go to your loved ones.
Keep in mind that state laws govern how debt and assets are handled after a loved one dies, so you may want to consult a financial planner or probate attorney when developing your own estate plan.