Health insurance is much like conventional whole-of-life cover in that it will sustain your widow and dependent children in comfort should you die young.
If a couple has attained retirement age they won't have young children, so the payout will be to their own benefit in their old age. The health insurance companies take into account that the fund will in all probability be for the well-being of the elderly proponent and his wife.
The elderly are particularly dependent on these senior health insurance plans to be able to carry on comfortably in life after retirement, and to meet all those expenses that are peculiar to their age group - buses, taxis, medical expenses (including dental and optical). The lump sum payment on death is designed to take care of the funeral expenses and to provide the surviving spouse with an investable sum that will furnish an interest on which she can continue to live comfortably. Such an amount might also be handy for covering sudden emergency expenses.
The advances these days in medical science and resultant technology means that people are living markedly longer, and the popularity of senior health insurance plans is burgeoning. Sadly, it's increasingly common for seniors to be called upon to bring up their grandchildren who have either been orphaned or been the victims of their parents' divorces; in these instances, the proceeds of the plan ensure not only the children's education, clothing and travel but their footing in life after the grandparents die.
Pension remittances and social security benefits - and assuming here that the oldies in question happen to be entitled to them - will take care of just so much, but are not to be relied upon. The insurance industry is undergoing wholesale transformation and revision right now, and many of the old policy forms that took their owners and beneficiaries for granted with mediocre cover values and exorbitant premiums are now being made much more reasonable, more flexible and more compassionate in understanding of circumstances.
If you have an existing senior health insurance policy, think about switching it. Don't feel disloyal. You owe it to yourself. In the days you took out the plan you presently have, you were paying through the nose - probably still are - and stood to gain a pretty ordinary sort of an end-term benefit. Get on the internet now and sort yourself out a far better deal - you're assured of finding it.