Life insurance is something that everyone should have, particularly if there are people who are financially dependent on you. After all, you would want to secure them financially after you are gone. When it comes to getting life insurance, age is a key factor that determines its need and cost. If you are planning to get it after 50, the implications may be different from those for someone in their thirties.
At this age, you may think that you don’t even need one if your loved ones are no longer financially dependent on you. Further, the cost may be a significant concern because it goes significantly higher as you age. There will be a lot more that you would want to know about life insurance after 50 before you get one. Here are some key facts for you.
What are the options in life insurance after 50?
Essentially, life insurance is categorized into term life insurance and whole life insurance. With term insurance, you get insurance for a fixed time period. In case of death during the coverage term, your beneficiaries get the amount specified in the policy. Conversely, whole life insurance lasts throughout your life and offers a cash value component that has the growth potential. Though the latter costs more, the coverage does not end. Once you reach your fifties, term insurance comes ahead as the more affordable option. However, you may opt for whole insurance if you have financial commitments that will not go away. They are better from the savings perspective as well. Both types of policies get expensive with age.
How can you choose the right option?
Since life insurance premium gets expensive after the fifties, it becomes important to choose the right one. The idea is to get just the right policy that offers adequate coverage at an optimal premium cost. Too little coverage can leave you thinking that you should have purchased more. Too much coverage, on the other hand, can bring a huge financial burden for you. It is best to consider your options in terms of policies from various companies and of various types. You can start by comparing the options based on your needs and budget and choose one that matches them. After all, you would want a policy that reduces your stress rather than adds to it.
Is getting insurance after 50 worthwhile?
One of the most critical questions about life insurance after fifty is whether it is really worthwhile. Life insurance is a cover that you do not buy for yourself but for your loved ones. Ty Stewart from SimpleLifeInsure.com explains that with life insurance, you are able to take the future security of your loved ones into your own hands. The need for getting insured at this age really depends on the fact whether you have financial dependents and how much financial support they would require when you are gone. These may include your spouse, children or parents. If you don’t have financial dependents, you may still want insurance because you may want to leave something as an inheritance for your loved ones. Estate planning, income replacement, trust planning and fulfillment of long term care needs are some other reasons to get life insurance after 50.
How can you get life insurance after 50?
Typically, you will have to go through the underwriting process to get life insurance at any age. It requires you to answer certain health questions and take some medical tests as well. If you are in good health, you will surely cruise through. But things get tricky for people after 50 because you may have moderate health troubles. Obviously, the premium value will go up and this may be a big concern. You can opt for no medical exam insurance because there are several companies that provide this option.
How can you save on life insurance at this age?
As mentioned before, the biggest challenge that you may face while getting insurance after 50 relates to your health. Looking for a no medical exam insurance is your best bet though you can also find a company that understands the unique health challenges for older people. Another good tip to get smart with life insurance at this age is to use it as a savings tool. A permanent life insurance policy, for example, can be used for supplementing your savings. Similarly, you can get certain tax benefits from it as well. So even while you spend a little extra on life insurance at this age, you still end up saving in the long run.
Building a safety net after 50- Why it matters?
At a young age, life insurance seems like a no-brainer because you get the best rates out there. However, things do not remain as simple as you grow older. Once you step into the fifties, you may become apprehensive about getting life insurance. The rates go significantly higher and you may really not need one because you have savings and assets after all the years of slogging. However, you really require it if your partner or children rely on your income. Getting life insurance at this stage is really a matter of individual choice. So you must do clear thinking or consult an expert about whether you need it and also the cover you require based on your circumstances and budget.
Financial security is important at any age. If you want to protect your family against uncertainties in the event of your death, it is never too late to get coverage at an affordable price. Beyond the financial implications and the safety net that a life cover offers for your loved ones, it also gives you peace of mind. Despite the concerns related to high premium at this age, you should still get coverage. The best thing to do is to explore your options because you will find plenty of them. Also, seek guidance from an expert who can help you with a smart choice so that you can cover your loved ones without digging a hole in your pocket.